Ontario short $157 million for tobacco country

Recently 2,000 tobacco farmers gathered in Delhi to receive the government’s terms for their demise -- a demise brought on, in part, by the unholy alliance of McGuinty’s ‘war on tobacco’ and the illegal trade. Representatives from Agriculture Canada explained how the federal portion of an exit package would be rolled out. There was no mention of help from Ontario.

And then, more recently, 2,000 tobacco farmers met again to talk about the possibility of a class action lawsuit that could supplement the $1.05 per pound of quota -- the $300 million -- the Feds have promised.

Because of high taxes and virtually no enforcement, as much as 50 per cent of the tobacco now smoked in Ontario is illegal. Cigarettes are being sold for pocket money out of the trunks of cars, and at smoke shacks - even on provincially-owned land in Caledonia.

We saw the results of high taxes back in the late 80s and early 90s as well.

The $300 million delivered by the Federal government stems from a civil settlement agreement with Imperial Tobacco Canada Ltd. and Rothman, Benson & Hedges -- both of whom admitted to smuggling tobacco in the 1980s and 1990s. The possible farmer lawsuit would target the same companies.

As part of the civil settlement agreement the McGuinty government received nearly $157 million that should have also been immediately forwarded to tobacco country.

Time and again I have stood in the Ontario Legislature requesting that the McGuinty government provide compensation to tobacco farmers for their policy of destroying the business.

Nearly two-and-a-half years ago I wrote to Ontario Agriculture Minister Dombrowsky asking her position on a tobacco exit. The letter I and others received read as follows: “I am willing to discuss an industry solution with my federal colleague and industry representatives, and can assure you that Ontario will be an active participant in a federally-led process to address this issue.” There were no qualifiers or strings attached – so we trusted and waited and put all our effort into lobbying the federal government.

When I learned of the $157 million last August I forwarded two letters to Minister Dombrowsky asking her to live up to her promise. This February, in response to my questions in the Legislature, the Minister indicated that her government provided $50 million a few years ago under the previous TAAP. Clearly the precedent was set, but somehow the McGuinty government now feels the 60:40 farm partnership with Ottawa no longer exists.

I further wonder how this bodes for other agricultural commodities that may require funding in the future -- will the McGuinty government turn its back on them too? The provincial budget is set for March 26th and the fiscal year end is March 31st. I fear that if tobacco country doesn’t focus on Queen’s Park over the coming weeks, the chances of receiving the $157 million of provincial settlement agreement money will be lost forever.

Tobacco has provided jobs and prosperity for Southwestern Ontario for 80 years, and people have long memories. I remain concerned the Ontario Liberals may not come forward with their 40 per cent share during our time of need. If so, rest assured there are those who will ensure such a travesty is not forgotten for the next 80 years.