Evidence of meeting #35 for Public Safety and National Security in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was farmers.
A recording is available from Parliament.
4:25 p.m.
Vice-Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
But for other types of tobacco they can.
4:25 p.m.
Vice-Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
Yes.
Our board only has jurisdiction over what is called flue-cured tobacco. It's bright Virginia flue-cured tobacco. It's a family of genetic varieties that are the main ingredients of cigarettes.
4:25 p.m.
Vice-Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
There's also a small quantity of burley and dark-fired tobacco, grown mainly in Ontario, I believe, but it is outside of our jurisdiction. It is used for cigarettes and all of it is exported.
4:25 p.m.
Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
That's right.
4:25 p.m.
Conservative
The Chair Conservative Garry Breitkreuz
Okay.
Is the quota given to you by the provincial or federal government?
4:25 p.m.
Vice-Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
The provincial government.
4:25 p.m.
Vice-Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
That's correct.
4:25 p.m.
Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
We purchased that quota over time.
4:25 p.m.
Conservative
The Chair Conservative Garry Breitkreuz
Yes.
You're asking the federal government for the buyout? If it's all provincially administered, what's the federal government's interest in this?
4:25 p.m.
Vice-Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
Obviously the federal government we believe is in a key leadership position, because it administers tobacco tax policy right across this country. You have the biggest levers at your disposal to help with the solution.
4:25 p.m.
Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
The idea in the beginning when we looked at an exit strategy was the fact that the product was consumed across the country. And if there's a levy to be put on that product, we always said that the product should pay for an exit strategy—not the taxpayers. So if it's from the product and it's from across the country, it would be federal jurisdiction.
4:25 p.m.
Conservative
The Chair Conservative Garry Breitkreuz
Yes, okay.
Ms. Jennings, you had question. Be brief, as we're almost out of time.
4:25 p.m.
Liberal
Marlene Jennings Liberal Notre-Dame-de-Grâce—Lachine, QC
Thank you, Chair.
Thank you very much for your presentation.
You talked about how in 2005, and prior to that in the 1980s, I believe, there was in fact an exit strategy management program. What was the total cost of that program in 2005, and if there was a federal contribution, how much was that contribution?
And given that you're asking for the same kind of thing in order ultimately to phase out the legal production of tobacco leaves, have you estimated what it would actually cost to have that kind of a program over five years, ten years, or whatever period you think would be reasonable? What would the total cost be, and what do you think this federal government should be contributing to that?
4:25 p.m.
Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
Well, if I can take a stab at your first question, I can tell you that there was $67.1 million contributed by the federal government in the last TAAP program, and the provincial government contributed $35 million. That worked out to approximately $1.74 per pound for the individuals exiting. They received that in one lot, so they didn't have to have it over a one- or two- or three-year buyout.
We believe that as producers we should not be treated any differently or in a lesser way, and that's what we're looking at. As a matter of fact, it's not a hefty price tag. On a carton of cigarettes, over a three-year period, it would be approximately $1 a carton.
4:25 p.m.
Liberal
Marlene Jennings Liberal Notre-Dame-de-Grâce—Lachine, QC
Okay.
If there's enough time, I know my colleague, Ms. Barnes, also has a question.
4:30 p.m.
Liberal
Sue Barnes Liberal London West, ON
I know that historically you've rotated crops to put the nutrients back into the soil, but as people exited, was there not some peanut production at some point, or attempts at that, and then later ginseng? I thought the peanuts had gone, but is the ginseng there, and has anybody discovered any other crop coming forward as a replacement?
4:30 p.m.
Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
I'll answer that.
I sat on a committee looking for alternative cropping for our area for many years, and I can tell you there is no silver bullet out there. The production of peanuts did start. It seemed like something that could happen on sandy soil. We have, basically, one individual left who produces peanuts. Most peanuts are imported, because at the end of the day it is cheaper to import peanuts than to grow them in our part of the country--or in any part of the country.
As far as ginseng is concerned, ginseng is being grown. It has its challenges as well. Ginseng can be put on farmland only once, and that's it. You can't put ginseng in, wait the five years or four years to harvest it, and then in ten years, say, put it back on that soil. You cannot. It is on a cropland once, and that is it.
4:30 p.m.
Chair, Ontario Flue-Cured Tobacco Growers' Marketing Board
You're welcome.