They could have got the $8 a carton. Big deal, $8 a carton. They take $20 off the price of a carton in Canada and add $8 south of the border-such a deal, that really makes a huge impact.
The U.S. was willing to co-operate with Canadians on this one too but it ignored it. We know why it ignored it. I hope that this new lobbying legislation is going to be effective because we have just seen an example of what happens when lobbyists are not controlled in this country. You can bet that the tobacco lobbyists got to this government before it came up with Bill C-32.
If it had imposed a larger export tax on cigarettes this would have thwarted the ability of smugglers to buy the cigarettes at a cheaper price south of the border, bring them back to Canada and make a tonne of money on them. No, they would not do that. They will not enforce the laws and they will not stand up to the powerful lobbyists who support this party with their influence-I was going to say money, but they would never admit that.
Back in 1992 the government of the day did establish an export tax but it was withdrawn a few months later because of pressure brought to the previous government by the tobacco lobbyists. I would like to meet some of these guys. They must be awful big and walk with clubs because they have a lot of influence on these people across here and they had a lot of influence on the previous government. The magnitude of the smuggling problem today I believe with a little more resolve the government could have stood firm on such attacks. I welcome the hon. member back to hear the truth.
If the government had increased the export tax on cigarettes it would have allowed us to maintain high taxes on tobacco products, discouraging the increase in smoking and reducing the possibility that our hospitals would become unworkable as those with smoking related diseases clog the system.
In league with this strategy the government could also attempt to convince the administration of the United States that higher taxes are in the interest of Canadian and U.S. citizens when it comes to tobacco products. Some of our contraband cigarettes are American made. Higher U.S. taxes coupled with our own export tax would present a significant deterrent to the smuggling problem that confronted this government and which it failed miserably on.
If this government is serious about its concerns over the health care of Canadians it would not in any way be implementing Bill C-32. It never would have come up with this. That is evident because of the questioning we have had to the health minister in the past who simply cannot give us any answers about the future health care system. Why should we expect that the government would be serious about health care concerning Bill C-32?
Studies have shown that lower prices mean more younger smokers, more of the population affected by smoking related diseases. It all adds up to increased health care costs which mean increased taxes for Canadians in the future. It is the taxpayer of this country who is going to have to pay for these increased health care costs.
To a government that has said it would love to reduce taxes in this country, if this is an example of it, again, this country is in a lot of trouble and the Canadian taxpayer under this government is going to see tax freedom day go from about June to three or four weeks later by the time this government is through with its term.
If this is how the government proposes to combat cigarette smuggling, the Reform Party and I must defiantly oppose it.