Lambton-Kent-Middlesex MPP Monte McNaughton rose in the house yesterday to make a statement calling on the government to do more to prevent the sale and manufacture of contraband tobacco.
McNaughton said this is an important issue that is impacting our communities and is estimated to cost the government over $1.1 billion in lost tax revenues per year.
Here is the full transcript from McNaughton’s speech:
Thank you very much Speaker.
As you know, Ontario is the epicenter for contraband tobacco in Canada and it is currently estimated that ¼ of all tobacco sold in Ontario is of the contraband variety. Illegal cigarettes are a prime source for youth smoking and make a mockery of price and access control efforts.
In addition, the Canadian Taxpayers Federation estimates that in Ontario alone, the provincial and federal governments lose as much as $1.1 billion annually to missing tax revenues from the contraband tobacco trade.
Speaker, we know that illegal cigarettes fund criminal activities in our communities and because of this it is clear, the Province of Ontario needs to do more to control the flow and supply of contraband tobacco.
As you know, it has been nearly three years since the Government passed Bill 186, the Supporting Smoke-Free Ontario by Reducing Contraband Act. This legislation could help disrupt the manufacture of illegal cigarettes but it is essentially useless because the Ministry of Finance has failed to finalize regulations for its full implementation. New regulations were promised years ago, yet they have been postponed three times, most recently to January 2015.
Speaker, contraband tobacco is a cash cow for organized crime and it’s a huge problem affecting communities across my riding of Lambton-Kent-Middlesex.
Today I join a number of community organizations in calling on the government to do more to stop and prevent the sale and manufacture of contraband tobacco all across Ontario.
Thank you.
