Mr. Speaker, in an attempt to ward off a firestorm I want to say that I have three cases of beer in my basement so I may be accused of being in a conflict of interest with the bill. Last time I checked, they were worth more than my Nortel stock.
I will do something a little different, and that is I will talk about the bill. I listened to the hon. member's speech. I am not saying that the microbrewing industry is not an important sector in Canada. He talked about using the microbrewery taxation process as an instrument for regional development. I would certainly suggest to him that the brewing industry has been used in the past for regional development. Coors brewery in Golden, Colorado can produce enough beer in one week, independent of taste, to satisfy the Canadian consumption for a year. Our country has regional breweries which have been very successful. The microbrewing industry is coming into vogue. Independent of all that, that is not what the bill deals with.
We referred this legislation to the committee at second reading, which meant that the House gave agreement in principle to the contents of the bill.To somehow suggest that we could add to the scope and scale of the bill something that was not in it intentionally is a clear violation of the House.
If the Bloc has an issue, it is a procedural one. I do not think it will get far with it . If it is really concerned about the country's microbrewing industry, I do not think this particular strategy will be very successful. Members of the Bloc may want to pick up the phone and talk to the microbreweries because I do not think they would find support even in the sector. It is an interesting strategy that is unfolding but it is not particularly helpful on any front that I can see.
I want to talk about the bill and specifically about the taxation on cigarettes. Mr. Speaker, you would be as interested in this as I am because you are close to the issue as an MP in a border community.
I can remember years ago when the smuggling of cigarettes was an epidemic. It was not only the issue of smuggling but it was a lot of the actions that surround the smuggling. It was an extremely lucrative business. There are a number of actions which seem to surround illegal businesses that are lucrative. Certainly in my area the St. Lawrence was a very dangerous place for a boater to be.
I can remember previous debates on this bill. The member for Elk Island tried to paint the picture that the government did not know what it was doing on cigarette taxes; that it put them up, put them down and put them up again. If he were to examine the situation we were faced with, he would have seen that New York, Michigan and other border states did not tax cigarettes to the same level we did.
The other thing we have to concern ourselves with is that taxation on cigarettes is not solely federal jurisdiction. The federal government cannot act unilaterally. We have to act in concert and in agreement with the provinces. We are balancing a number of interests here.
At the time, with the Canadian dollar where it was and the level of taxation on Canadian cigarettes when they were exported to New York, Vermont and Michigan, the government wanted to do the prudent thing. We had two choices. We could drastically increase expenditures into policing the activity or attack it at the source, which is the economics, and reduce the economic incentive to smuggle cigarettes. That involved a reduction in the taxation. We said at the time that it was a temporary measure.
We now have a situation where the Canadian dollar does not lend itself to getting involved in smuggling cigarettes. Also in some cases the tobacco taxes in New York, Michigan and Vermont are higher than they are in Canada. I think that issue has been put to bed temporarily.
The other advantage to cigarette taxation is an attempt to put in place a disincentive for young people to buy cigarettes. The more expensive cigarettes are, the harder it is for someone to smoke that first cigarette or begin to smoke cigarettes. There is a lot of competition for young people's dollars these days. If we can take cigarettes off the table and not get people started smoking, we are doing society a great benefit.
We cannot simply rely on the economics alone. If we look at research into youth smoking we see a number of reasons that young people take up the habit. One group of young people smoke because they are trying to look adult. Another group smoke because they want to give the image that they are rebelling. Another group is simply highly susceptible to peer pressure. The fourth group, which is quite disturbing, consists of young women who are under the impression that tobacco is an appetite suppressant. Faced with a bombardment of media that tries to portray a certain body type, they take up smoking in an attempt to control their weight.
Government has to realize that we cannot send the same message to all four groups. We cannot come out with an advertising strategy that says smoking is bad because that is exactly why the group doing it to rebel takes up smoking. We are reinforcing the wrong behaviours.
We must take a step back. We have moved on the cost of cigarettes, and that is a positive step. We must also move on very targeted campaigns aimed at the specific reasons that young people smoke. We must put the dollars on the table, which the government is certainly committed to doing, to undertake campaigns that will back up and support the tax policy, which is clearly designed as a disincentive, with positive marketing that addresses the root causes of young people taking up smoking. It will pay dividends down the road in decreased health costs.
With the Romanow commission in full flight, we are certainly looking at the sustainability and the costs of the health care system. Anything we can do to prevent rising health costs down the road is something we need to take a very serious look at.
I think the bill has wide support, including from the brewing industry. It seems to be a bit of a tempest in a teapot to focus on that industry. I think this is a very logical framework for the taxation of these controlled substances in the country. I will have absolutely no problem supporting the government on the legislation. It is a good step forward.