Mr. Speaker, I want to make a few remarks in the third reading of this bill.
It has been a number of months since Bill C-11 was first debated in the House. During second reading of Bill C-11 in February the Reform Party used the opportunity to discuss and debate all the changes proposed by the government as a part of our national action plan to combat smuggling, particularly our opposition to the tax reduction on cigarettes. That was our main concern.
I wish to make it clear that while Reformers support the changes to Bill C-11, we are still opposed to the tax reductions on cigarettes which were recently introduced in Bill C-32.
Yesterday we introduced an amendment that would make it more difficult for young people to obtain chewing tobacco. We have grave concerns in that regard. We appreciate very much that the government listened. At this time it is not going to implement the amendment, but we appreciate its openness and acceptance of the idea.
Bill C-11 will improve enforcement under the excise and customs acts by giving the government the authority to allow police forces other than the RCMP to enforce specific provisions. Provincial and municipal forces can be designated with the authority to seize alcohol or tobacco, to seize vehicles used
to transport contraband, and to seize equipment used in illicit activities. Reformers support these increased enforcement measures.
Bill C-11 provides for the immediate destruction of certain seized goods, primarily tobacco and alcohol. Currently these goods would have to be kept for one month. It is estimated the measure would save taxpayers $200,000 per year in storage costs. Bill C-11 also provides for compensation to be paid to a person who is entitled to have the seized goods returned but the goods have been sold or destroyed.
Reformers have some concerns about this provision because it is not completely clear to us whether the person would get the fair market value of the goods if the goods were sold. I am referring to subsection 9(3) which states that if it is not possible to return them "the person shall be paid (a) where the goods were sold the proceeds from the sale".
Our concern is that the proceeds from the sale may not be the fair market value for the goods, vehicles or equipment sold. While we have some reservations concerning compensation for seized goods that have been sold or destroyed, Reformers still support the new provision.
Bill C-11 will also amend the Excise Act in order to require individual cigarettes to be clearly stamped to indicate that excise duties have been paid. This will make it easier for everyone to identify those persons who are smoking contraband tobacco products.
The Canadian Cancer Society still believes that individual stamping of cigarettes may not be visible enough and has recommended that Bill C-11 be amended to make it possible to require tobacco manufacturers to produce cigarettes with different coloured paper. If individual stamping does not prove to be effective, certainly a different coloured cigarette would be more noticeable. While Reformers support the amendment proposed by the Canadian Cancer Society, we will still support Bill C-11.
Just as an aside, I think it would be an interesting research project to see what effect black paper would have on the outside of cigarettes rather than white paper. It would be an interesting research project for someone to do some time.
Bill C-11 also amends the Tobacco Sales to Young Persons Act by raising the legal age of purchase to 18 years and prohibiting the sale of so-called kiddie packs. The amendment will make it illegal for tobacco vendors to sell kiddie packs and make it illegal for tobacco manufacturers to package cigarettes in packages containing fewer than 20 cigarettes.
There has been some concern by tobacco manufacturers about the cost and the timing of the implementation of the amendment, but Reformers believe it is not a major issue. The health of young people is more important and we support the government's amendment.
I wish to remind the government of the comments made by the hon. member for Wild Rose in the House on February 22. I should like to quote them at this time: "Stopping the so-called kiddie packs is one thing that is excellent about this bill. The only problem is that we will not have to worry about kiddie packs any more because now they can afford the 25 packs".
This statement illustrates a real concern about the government's national action plan to combat smuggling. The tax reduction on cigarettes has made cigarettes more affordable for everyone, especially young people. We just do not know how many thousands of people will start smoking or start smoking more as a result of the tax reduction on cigarettes. Consequently we do not know how much the government's action plan will cost taxpayers in increased health care costs. This is a major concern for us.
Our concerns were confirmed when the Parliamentary Secretary for the Minister of Health appeared before the Standing Committee on Finance on June 7 and advised that the government's goal was "to reduce the demand for tobacco, the number one cause of preventable death in Canada. It is the number one cause of preventable death". She went on to say: "The government fully recognized that the action plan to combat smuggling and the tax measures associated with it would pose health risks".
It is inconceivable to me how the government could rationalize those two statements. It recognizes the problem and it recognizes that what it has done will compound the problem. I think this needs to be addressed.
In conclusion, once again I express our support for Bill C-11, as amended, even though we oppose the government's tax reduction on cigarettes. Reformers look forward to the real debate on the government's national action plan to combat smuggling when Bill C-32 comes back to the House from committee.