March 4, 1998

Tobacco Taxes, Lawsuits, and Lost Rights

Whether it be lawsuits brought by several American states against tobacco companies, regulation of customers in business establishments, or cigarette taxes, tobacco has been making headlines lately. However, this appears to have had little, if any, impact on the strength of the current tobacco market here in Ontario - sales in the Tillsonburg and Delhi Auction exchanges remain stable.  

Recently, the federal government raised cigarette taxes across Canada. This resulted in a $1.61 increase in the price of a carton of cigarettes in Ontario.   This tax increase was not the result of any Ontario government decision.   Any tobacco tax increase is solely a federal government decision.

How did this come about?    In the 1996 Ontario budget, legislation tied the level of provincial tobacco tax to rate of federal tobacco tax.   Now, any increase, or   decrease, in federal tobacco taxes results in a corresponding shift in the provincial tax.

The increase in tobacco taxes seems to be just another step in the over-regulation of both the tobacco industry, and society in general. There has been a shift away from personal responsibility, and a shift toward lawsuits, government regulation, and red tape. For example, a man in the Pacific North-West, whose arteries are clogged, is suing dairy farmers because their milk cartons did not warn him about cholesterol.

The discussion of individual responsibility usually leads to discussion of personal rights - a subject that I have often had the opportunity to address. Many people know that a Delhi-based group is concerned about the loss of individual and smokers' rights.   This group has presented me with petitions containing thousands of names supporting the freedom of choice of private business owners.   This is the second petition I have received regarding the Tobacco Control Act -   with a total of about 20,000 signatures.   I have had the opportunity to present these petitions to the Legislature on several occasions, and will continue to do so this spring.   I have been exploring other options, and if appropriate, could introduce a private member's bill that advocates individual choice for private stores regarding no-smoking signs.

Many states in the U.S. have sued, or are in the process of suing, tobacco companies seeking compensation for health care costs.   The same type of lawsuit is being considered in British Columbia.   These lawsuits overlook some important facts - most notably that high tobacco taxes in Canada have been in place for years and more than offset any increased impact on the health care system due to smoking; and the fact that smokers know the dangers of smoking before lighting up.   Cigarette packages have had warnings printed on them for years, and cigarettes are not impossible to give up.   The decision to smoke is made by informed consumers.

The over-regulation of the tobacco industry, and the anti-tobacco moral crusade, have had great impact on the economic health of our area.   Smoking is a risk-for-pleasure trade for adults, much the same as drinking alcohol, overeating, or driving a motorcycle.   These activities can all result in a personal health problem.   As long as government, manufacturers, and retailers advise the public of the dangers of using a product, it is the consumer's responsibility to decide whether to use the product or not.   This is the cornerstone of personal responsibility, accountability and a foundation of our personal rights.