Mr. Speaker, the advice we received from the commissioner of the RCMP was that tougher enforcement measures alone would not have been sufficient to deal with the problem. We have to respect that advice, coming as it does from the head of one of the most respected law enforcement agencies in the world.
It is understandable why this advice came because we are dealing with a problem national in scope. It is true that there is a certain focus in eastern Ontario and Quebec, but the information also was that some 40 per cent of tobacco consumed in the Atlantic provinces was smuggled, some 35 per cent of the tobacco consumed across Ontario was smuggled, some 15 per cent of the tobacco consumed in the western provinces was smuggled and these numbers were rising sharply.
The information was that thousands of people were involved across the country in distributing this contraband tobacco. Tens of thousands more were buying it and consuming it. This involved increasingly organized smuggling rings which were not only involved in tobacco but also alcohol, drugs and firearms.
When the problem was of such scope we had to tighten up and hit the smuggling rings through tougher enforcement measures. We also had to get the profit out of the smuggling of tobacco as a means of reinforcing the tougher enforcement measures. This is why, even though we knew of all the problems and concerns and even though we knew this was not an easy decision, we knew there was no simple solution to a problem of this complexity. We knew that our national plan had to have in it a component involving the reduction of domestic taxes on tobacco in order to take the profit out of smuggling. Along with that we knew we had to impose an export tax on tobacco and an excess profits tax on the tobacco companies to further squeeze out the profit but also to generate funds for a major anti-smoking program. We knew all these things had to be done.
We concluded, and it was not something I have to say we were happy about, it had to be done in the public interest, that the national plan to deal with smuggling could not depend on enforcement alone. It had to depend on tax measures which as I have said did not only involve the reduction of domestic taxes on tobacco but involved substantial tax increases on the tobacco companies, an export tax on the products they made here and sent abroad, because we knew that was a source of a lot of what was smuggled back, and also a substantial tax on these tobacco companies to fund a major anti-smoking program.
I have the greatest respect for the organizations quoted by the hon. spokesman for the Reform Party, but I think most of their communications were published before our plan went into effect. They feared we would ignore the tobacco companies. They feared we would ignore the need for an anti-smoking program and of course we did not ignore those key necessities. They are parts of our national plan. I hope that these organizations will take another look at what we are doing. As I said, I respect their concerns about the implications of tax reductions but a lot of the other things we are doing involve measures that they themselves have called for for years and now we are proceeding to do them.
To sum up, enforcement is a necessary part of our program but it was concluded reluctantly that enforcement alone would not do the job. This just says something about the complexity of governing in a country like Canada. Sometimes problems arise for which there are no simple or easy solutions. Whatever way you go involves problems, but it still means that governments
have to take decisions and operate in the best interests of the country. Then when the time comes they must submit themselves to the judgment of the public. We are happy to do so in this case and with respect to the other things we have done and will be doing with the intention of serving the best interests of all Canadians, of people in every part of this country.