Mr. Speaker, before I begin my discussion of Bill C-32 I would like to comment on the operation of our democratic system, the authority of Parliament to fully discuss legislation and the way that this bill is being moved so quickly through the House.
The first reading of Bill C-32 occurred on May 27, a short time ago. As everyone in this House knows, this is a very complex bill of 62 pages, filled with highly technical information.
The government should show respect for the role of opposition parties to study, analyse and prepare constructive criticism on such bills by allowing sufficient time for comprehensive review.
This is particularly true when a great deal of new legislation, again much of it very lengthy and complex, is being introduced all at the same time toward the end of this session. I believe it does a disservice to our country, to this House and the members' roles in it to be dealing so quickly with some very important legislation and this is one example of that.
By pushing debate ahead so quickly on this and other last minute legislation the government is disrepecting the spirit and purpose of our democratic institutions. Canadians deserve better than this. Canadians do not want to sacrifice principles, respect for democratic process and due process for the sake of expediency.
Unfortunately this expediency has a severe cost in the case of Bill C-32. While Reform supports certain elements of this bill, such as some of the anti-smuggling initiatives, the air transportation tax changes and the meal allowance changes, there is much that is questionable about Bill C-32. It is a flawed piece of
legislation because it deals with the health of Canadians and in the view of many caves into the pressure of the tobacco lobby, discriminates against western provinces and can well contribute to interprovincial smuggling. These elements make it a bad bill, pure and simple.
The first issue which I would like to speak to is the government's unfortunate provision in this bill which removes one deterrent to the threat to the health of Canadians. This is the lowering of the tax on tobacco products. Nothing is more important to Canadians than their health and the health of their loved ones. This concern of Canadians is an especially strong case for young people when it applies to our future generations.
Unfortunately it is this age group that tobacco manufacturers have been targeting for many years with their advertising campaigns. The government, however, seems to have lost the will to combat this problem directly. It decided to lower tobacco taxes without making a proper evaluation of the impact of its actions on health care costs and on possible increased addiction among the nation's young.
As we were reminded last week by the hon. Reform member for Yorkton-Melville, the Parliamentary Secretary to the Minister of Health clearly stated in one of her speeches that the government fully recognizes that the action plan to combat smuggling and the tax measures associated with it would pose health risks. How can the government pursue such measures in good conscience when it knows that one serious result of this legislation before us today may lead to greater addiction and result in heart disease, cancer, and death?
Where is the logic here? Where are our priorities? How are we to believe the government's professed statements about concern for the health of Canadians, indeed statements made today in this House by the Minister of Health showing great concern and great sympathy for a very unfortunate case?. These actions do not square with that professed concern.
I do not doubt that there are some in our country, mainly the tobacco lobby, who are pleased with this legislation but it should not be the concern of this House to cater to special interests, especially interests which put their own profit margins over the health concerns of the nation. This House is here to provide good government to all Canadians and this is the goal of the Reform Party.
Even if we were to consider the idea of tobacco tax reductions as legitimate, this bill does not even handle the tax decrease fairly. The provinces of western Canada which wanted no part of the tax decrease and desperately needed the revenues, mostly to pay for health costs, a good portion of which are incurred by smoking, have been bullied by this government. They have been given no choice. They have lost a great deal of revenue and received no compensation whatever. This is clearly discriminatory in our federal system.
Worse still, western provinces which never had a tobacco smuggling problem before now are having to cope with a large inflow of cigarettes from the eastern provinces that have lower tobacco taxes than they do. This is unfair and it must stop.
We recognize that you cannot beat a plan with no plan so the Reform Party would like to suggest an alternative route to the hasty and misguided path upon which the government has now embarked.
We recommend a plan for restoring tobacco taxes to previous levels should be considered. It is true that tax levels need to be lowered in this country but lowering them in this one instance in this one narrow area without regard for all the consequences is not the proper way to go. The government may complain that increased taxes will again lead to increased smuggling. However that is not wholly true.
As has been mentioned in this House before the majority of cigarettes being smuggled into Canada, in the region of about 70 per cent, were coming from reserves located on Ontario and Quebec borders with New York State. However, due to a U.S. court decision on Monday New York will now be limiting the supply of duty free cigarettes to these reserves based on a per person quota. All cigarettes in excess of this quota will be fully taxed. This means that cigarettes coming through those reserves will already cost about 35 cents more per pack than those legally purchased in Canada.
Furthermore, if the proposed American health tax on cigarettes is added later this year as anticipated, Canadian cigarettes will be cheaper by around $1.50 a pack than their U.S. equivalent. This opens the door for the return to previous taxation levels with no increased risk of smuggling.
The Reform Party would therefore ask the government to act on this development as soon as the House resumes sitting in the fall. If the government still finds that there is a smuggling problem then it should consider the reinstatement of an export tax on those cigarettes sold to neighbouring jurisdictions which are above and beyond our historic levels of cigarette exports, which are about 3 per cent of Canadian cigarette production.
The Reform Party also suggests that the health promotion surtax imposed earlier this year on the profits of cigarette manufacturers be extended from three years to six years.
I would ask the government to introduce a complete ban on all advertising for tobacco products. It is high time that government put the health concerns of Canadians first on its list of priorities. The more time we lose, the more health care resources and lives of our citizens are going to be lost. Now is the time for more considered action.
The Reform Party believes that this is an important debate of concern to all Canadians and we believe that the government should now re-examine this matter of lowering tobacco taxes. A vote against this bill now could be a vote for a better approach to this problem in the future and indeed a vote for a better future for the health of our Canadian citizens.
I would urge members of this House to vote to suspend the implementation of Bill C-32 at this time so that with the resuming of sittings in the fall we can all work together to get it right.