Mr. Speaker, on February 8 this government announced its national action campaign to combat smuggling. Bill C-11 was introduced to address some of the enforcement measures and tax changes were implemented using a number of ways and means motions until Bill C-32 was introduced on May 27. As has already been outlined, there are a number of positives mixed up in the bill with the obvious negative of lowering cigarette taxes and thereby lowering the price of cigarettes to smokers.
On February 10, I wrote a column on this very issue for newspapers back home. It was printed in all the local papers. I think it is of interest and I would like to quote from my column and read it into the record:
The Prime Minister says there is a breakdown in respect for the law in Canada and this will no longer be tolerated. His House leader states that smuggling is a crime and we must restore law and order. Brave words, hopefully to be followed by strong action undertaken with a resolute strength of will.
The government unveiled its national action plan to combat smuggling, the objective being to eliminate cigarette smuggling in Canada. Like most government plans, it is a mixture of good and bad. Its plan to step up enforcement by police forces and customs officers is certainly commendable as is the implementation of an $8 per carton export tax.
Stepping up the anti-smoking education campaign is also a positive move. However the government's announced reduction in taxes on legal cigarettes sold in Canada must surely be a disastrous error. Make no mistake, the federal government struck this deal primarily for the benefit of one province.
Quebec has been clamouring for action on this for weeks. Almost immediately after the Prime Minister's announcement, Quebec indicated its willingness to participate fully in the tax reduction scheme. As a result, the price of a carton of cigarettes in Quebec will fall from $47 to less than $23 when federal and provincial taxes are removed, along with relevant GST and sales taxes. What is the fallout from this?
Criminals have been sent the message that we cannot protect our borders or enforce our laws, particularly on the Akwasasne Indian reserve through which an estimated 70 per cent of contraband tobacco is funnelled. We will instead lower the price of legal cigarettes and compete for their customers.
Provinces other than Quebec will be forced to match the tax reductions. If not, an international smuggling problem will simply become an interprovincial one. Every province will face a resultant drop in tax revenue at the very time they are all struggling to balance income with expenditures.
Price is a deterrent. Cheaper cigarettes will act as an incentive for Canadians to start or to continue smoking, especially our youth. The end result will undoubtedly be higher health costs for all Canadians in the future.
For years, our policy has been to attempt to offset the costs attributable to smoking by levying higher tobacco taxes. Now suddenly with one stroke of the pen, this government has reversed that policy. This new policy of reducing domestic taxes in lieu of initiating a higher export tax will primarily benefit the tobacco industry by maintaining or increasing current cigarette consumption levels.
If past performance is any indication this government, just like its predecessor, will lack the political will to follow though with its announced crackdown on smugglers. In my opinion what is needed is a comprehensive plan which would include strict enforcement of our laws. If the present police and customs forces are inadequate as the past record of seizure of only an estimated 1 per cent of illegal cigarettes would seem to indicate, then those forces should be augmented.
If necessary, our armed forces should be called upon to assist with this mission. Perhaps a little trip down the St. Lawrence might make a good shakedown cruise for our new frigates. It is time for politicians to make some tough decisions and give the police a mandate to enforce our laws.
That was my column on February 10. What has changed since February 10? I note not a lot.
I would like to change the focus of the debate a little at this point and talk about cigarettes from a personal perspective. I have been a smoker for approximately 25 years.