LEGISLATIVE
ASSEMBLY OF ONTARIO
Tuesday 31 May 2005
ORDERS OF THE DAY
TOBACCO CONTROL STATUTE LAW AMENDMENT ACT, 2005 /
E DU TABAC
Mr. Toby Barrett
(Haldimand-Norfolk-Brant): I've actually been looking forward to rising
this evening to speak to Bill 164, the Smoke-Free Ontario Act. I know
we'll be here until midnight this evening, so I am looking forward to
kicking off the first hour.
A few short months
ago, with this bill's introduction, I had an opportunity to address the
issue. I remain opposed to this particular piece of legislation. In principle,
we all support prevention. We all support funding for cessation programs
with respect to smoking. We all recognize the ill-health effects of those
who spend a lifetime smoking, and smoking in excess. I think what I do
oppose is the approach that this government has taken. They labelled their
approach "the war on tobacco," and it's an approach to smoke
reduction, as found in the proposed legislation we're debating this evening.
It is an opportunity for all three parties to speak this evening, and
I am particularly interested in hearing what the government members opposite
have to say. As I indicated, we have until midnight. They have introduced
this legislation. A number of amendments have been made. There has been
a modicum of consultation, and I look forward to hearing the government
members defend this particular piece of legislation.
Over a number of
weeks, finance committee hearings were held on the Smoke-Free Ontario
Act. This is a bill that, if passed, as we know, will prohibit smoking
in all workplaces, work vehicles and public places such as bingo halls,
bars, restaurants and certainly taverns and Legion halls. I sit as a member
of the finance committee and sat through four days of hearings. I found
them very interesting and really quite informative. When you begin to
scratch the surface, when legislation is introduced, albeit at the bidding
of certain interest groups, during the hearings you start to hear from
not only the other side, but a number of sides. We certainly heard from
business, from farmers, from those bingo halls and those restaurants.
We heard from the taverns and the bars. We heard from members of the Royal
Canadian Legion.
In Oshawa, the hearings
were attended by the Grim Reaper. He had a mask. He carried a very large
anti-tobacco sign. The Grim Reaper also greeted farmers as they filed
into the Tillsonburg Special Event Centre, where the legislative hearings
were held. Farmers were coming in to submit their bids on the quota buyout.
Essentially that day, at least 150 farmers came in to submit their bids
and to exit the industry forever, to no longer be tobacco farmers. It's
regrettable that these farmers were met by the Grim Reaper with a sign
in opposition, bad-mouthing the particular crop that they grow. I will
say, to his credit, the Grim Reaper didn't leave his mask on for long.
I know he left his mask on all day at the Oshawa hearings, but he wisely
took his mask off, I feel, out of respect for those farmers who were filing
into the room all day that we were conducting hearings, filing into the
room adjacent to exit the industry.
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It was also symbolic that an organization called Tobacco Farmers in Crisis
kicked off the first day of hearings in Toronto. I say "symbolic"
because these same tobacco farmers really are the ultimate casualties
in George Smitherman's and Premier McGuinty's war on tobacco. In their
presentation, the group impressed upon the finance committee their concerns
with respect to the import of offshore tobacco, something that will only
continue to grow as our Canadian and Ontario farmers are pushed out. Our
farmers are being replaced by farmers from India, China, Brazil, tropical
countries where who knows what chemicals are sprayed on the leaf that
they grow.
Tobacco Farmers in
Crisis were represented by their speaker, Luc Martial, who told us, "What
we're seeing in terms of an emerging threat to the health of Ontarians
-- and this is why I believe it is important to raise this issue now --
is a tremendous shift in the use of foreign tobacco leaf in Canadian-style
cigarettes." Mr. Martial went on to say, "In terms of how this
relates to health, while we can and do have the authority to control Canadian
tobacco growers, we have less authority to control foreign producers of
tobacco products."
I had an opportunity,
as we all do in committee, to question Mr. Martial as to whether or not
there is any testing for agri-chemical residue with respect to herbicides,
insecticides, fungicides on tobacco that is grown in tropical countries.
Again, my assumption is that there would be a different recipe of chemical
sprayed, blown or actually administered to that particular crop in a tobacco
country as opposed to a Canadian crop where we know a number of these
organisms are killed off over the winter.
Sadly, we all know
the answer. The fact is that, as our growers are pushed out, the cadre
of smokers who will always remain will be inhaling offshore or other unregulated
product. That doesn't make sense to me. It doesn't make sense certainly
from a health perspective. Does government have any idea what kind of
tobacco people, including young people, are buying from the trunk of a
car or perhaps from their local native reserve? Six Nations and New Credit
in my riding have seen the growth just in recent months of 279 new smoke
shops. These have sprung up to seize the economic opportunity over the
past two years of a change in tobacco policy that has given up any modicum
of control.
I see in local media
reports that -- the figures are in -- we've lost something like 150 tobacco
farmers, again casualties of the war on tobacco. In my view, extended
war reparations are in order, and I feel the extended allocation of assistance
to tobacco farmers should be tied to the passing of this bill.
Things have gone
from bad to worse down in tobacco country, in Norfolk, Elgin, Middlesex,
Oxford and Brant county. The $35 million that has been allocated to farmers
-- part of the $50-million promise of about two years ago on behalf of
this government -- clearly, given the accelerated decline and downturn
in the agricultural economy locally, is not going to be enough to help
out to the extent one might think.
While we're on the
subject of what this government should be doing for people whose livelihoods
are being sacrificed in the name of a smoke-free Ontario, I'm calling
for what our government described a number of years ago as a rural jump
team to set up shop in tobacco country -- storefront, if you will. The
town of Delhi might be a good location. There are lots of empty storefronts
in Delhi. They could be there to help, advise and provide support not
only for farmers but for rural people and people in towns like Delhi,
Langton and Tillsonburg. Some of the effects are beginning to accrue in
the neighbouring town of Simcoe. Even though towns like Simcoe, Ohsweken
and Caledonia are tobacco towns, much of their manufacturing is more and
more relying on foreign tobacco.
In a town like Delhi,
where they've lost all three car dealerships, you cannot buy a new car
now. That was a town that in my lifetime to date has always been a very
prosperous agriculture-based community.
We attended hearings
in Tillsonburg. Norfolk Councillor Roger Geysens testified. He indicated,
"We have already lost a number of businesses and the jobs they provided."
He made mention of the "Delhi Foundry, manufacturer and seller of
specialized tobacco equipment, closed; Harley Smith, tobacco equipment
supplier, closed; Jacob's Greenhouses, closed; Delhi Dodge, closed;"
Blue Star "Ford, Delhi, closed; Norfolk Co-op" -- my grandfather
was a founding member back in the early 1800s. The Norfolk Co-op is a
crop input supplier. I used to work in the fertilizer warehouse. Much
of our business was with tobacco farmers. The co-op is now restructuring
under bankruptcy protection. These are just a few of the businesses that
have been either closed or on the way to bankruptcy.
I sincerely feel that it is time for this government to stop ignoring
the consequences of its own actions and do the right thing. At minimum,
come forward and help communities and help these families rebuild. Again,
it's in this context that I urge this government to send a rural jump
team down to tobacco country before the economic base, let alone the social
base, is eroded completely.
There is no question,
again, that in tobacco counties -- Middlesex, Brant, Oxford, Elgin, Norfolk
-- people are scrambling. I see a rural jump team, a cadre of ministry
staff -- primarily Ministry of Agriculture and Ministry of Economic Development
staff. They are needed for support, at a minimum to be there to have some
visibility and to provide some answers. That's one way.
I say "one way"
because this is only a part of the role that I feel government is obligated
to fulfill as the smoke-free boulder rolls over our rural communities.
In addition, I echo the call of others who testified at the committee
hearings. There was a call for what is being termed an agriculture innovation
centre. I am trying to present some positives in what has become an all-encompassing
and albeit a very negative situation in the counties down in the rural
south. I ask this government to consider a proposal -- I understand that
it is sitting on the desk of our Minister of Agriculture -- for an agriculture
innovation centre to help farmers look to other communities and other
sectors for future alternatives: alternative crops to tobacco; alternative
economic activity to tobacco. As I understand, that has gone forward to
the Minister of Agriculture. I would hope we could see some action on
an ag centre because there is very little agricultural future, at the
present time, in tobacco country without tobacco.
I want to make mention -- and I'll change gears a bit -- with respect
to testimony we all heard from representatives of corner stores across
Ontario and the impact this legislation has on convenience stores, both
financially and from a safety perspective.
Again, I'm also thinking
of the Korean community, for example, and the impact it would have on
their social life, essentially their cultural and family life. These are
truly family-operated businesses.
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Corner store employees have long been partners in ensuring tobacco is
not sold to minors. The employees have been vigilant when it comes to
not selling smokes to underage customers. Now we have legislation that
in effect punishes them, when we know that young smokers have found, and
will continue to find, alternative ways of buying smokes: again, out of
the trunk of a car. The guy selling cigarettes out of the trunk of a car
or the back of a van never asks for ID, unlike the corner store operators.
I'll mention again
the fact that in my riding alone, in the last year and a half or so, I
have seen the creation of 279 smoke shops. They have opened up both on
Six Nations and on New Credit, and I can assure you business is booming.
Why wouldn't it be? People can buy legal cigarettes at $60 a carton, or
come on over to native land and you can pay $25 or $30 a carton for tobacco,
with no guarantee where that tobacco came from or what's been sprayed
on it. For some reason, the government seems to be happy to ignore this
reality that's right under their nose. Smokers will find tobacco where
they have to, a smoke-free Ontario or not. If that means the use of illegal
tobacco, contraband tobacco or other unregulated tobacco, so be it. People
vote with their feet; this is the marketplace.
So what we are seeing
as a result of government legislation and regulation, and primarily at
this point taxation, because this bill hasn't kicked in yet, is smokers
forced to use a more dangerous product. At the same time, my tobacco farmers
are being forced out of their livelihood, a livelihood based on a very
highly regulated industry.
Back to convenience
stores. Approximately 25% of convenience stores have experienced robbery
in the past year. That's a 50% increase over the previous year. The corner
store operators attribute these statistics to the Ontario Liberal government's
decision to jack up tobacco taxes three times since coming to power. Across
Ontario, governments take in well over $8 billion a year in tax revenue.
It is felt very clearly that Bill 164 will add to this critical situation.
Perhaps it's time for both the provincial and federal governments to allocate
some of that $8 billion in treasury taxation revenue to provide additional
protection for these corner stores. Let's provide some protection for
the employees and operators of these corner stores that are being robbed.
Each year, one in four is being robbed. Why would they rob a corner store?
In the majority of the cases, it's for cigarettes.
Bingo halls: As I
said before, this is certainly not just about farmers. Over the past several
months, we on the committee and those of us involved in consulting on
this legislation have worked closely with a number of groups, including
representatives from charity bingo. Ontario bingo halls employ 4,200 people.
Ontario bingo halls support 4,000 charities, and they generate $100 million
for local charities. Municipal smoking bylaws have already closed many
of Ontario's bingo halls. In Niagara Falls, for example, one bingo hall
remains. There was testimony from this bingo hall in which it was indicated
that if Bill 164 closes the doors of the last bingo hall in Niagara Falls,
you will see 91 charities without a source of funding. Again the question
is, who will provide funding for people who rely on these 91 charities?
The hospitality industry:
We certainly received a great deal of feedback from the restaurants, taverns
and bars, much of it around the fact that designated smoking rooms were
constructed in good faith, and then the carpet was yanked out from underneath
them. I will continue to press for extended compensation, as I have been
for tobacco growers. I feel there should be compensation for additional
police protection of the corner stores, and I'll press for extended compensation
for the hospitality industry. Many in the industry have spent somewhere
between $15,000 and $300,000 to establish a separate ventilated designated
smoking area, and they've lost that investment if this bill goes through.
Premier McGuinty could avoid paying the hospitality industry anything
if he'd take a look at a model that was developed in British Columbia,
whereby restaurants, bars and pubs have been given the option to maintain
a separate ventilated smoking room.
I think you can see
that if this bill is passed this evening or tomorrow, it will impact and
has already impacted a wide range of groups, not only farmers, not only
bingo halls, not only the corner stores or the restaurants and bars. It
will impact Royal Canadian Legions, for example.
We hear today of
the $50-million announcement for tobacco prevention and cessation programs,
something promised by this government at least two years ago. I hope we
don't have to wait another two years for additional money to better enable
our professionals in the health units, for example, to encourage young
people to either not take up smoking or to cease smoking. But again, is
there money slotted for surveillance? Is there money slotted for the hospitality
sector? I certainly saw today not a penny for convenience stores, not
one red cent for those charities who will be hit hard by the loss of their
bingo hall supporters. Of course, as with the budget, there's no additional
mention of remuneration for our tobacco farmers.
It's a very long list of stakeholders who have a very keen interest in
this legislation. They await the implementation of this bill one year
from now, if it's passed. The corner store people were blindsided a bit
by losing the right to have their back-wall displays. They're somewhat
puzzled that this back-wall display will not be administered until after
the next election, in 2008. Clearly, this government has made that an
election issue.
In addition to the
good people who testified over the months and provided us with so much
information, in my research I have certainly been drawing on some work
from my assistant, Rob, and also my executive assistant, Bobbi-Ann. Bobbi-Ann
just had a baby this morning, baby boy Carter, soon to be joining big
sister Addison, and they'll soon be visiting dad's and grandfather's tobacco
farm up in Oxford county.
I was disturbed by
the process involved in the hearings. Over the course of those hearings,
225 associations and individuals applied to testify. Only 88 people were
given the right to speak; 137 were turned away. Many of these people attended
the hearings anyway, and I certainly heard from them the fact that they
were truly disappointed with the lack of consultation with respect to
the anti-tobacco bill.
There were Liberal
MPPs who were disappointed as well, and I can quote MPP Dwight Duncan
in the Windsor Star. "`It's quite unusual', he said of his and [MPP
Sandra] Pupatello's request that the committee, headed by Chatham-Kent
Essex MPP Pat Hoy," who is at least one Liberal here this evening,
"hear from an additional delegation." But they made the request
anyway, because even they, MPPs Duncan and Pupatello, realized that the
public must be given a chance to have its say. I will report, there was
no additional delegation.
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This Smoke-Free Ontario Act, if passed as is, will impact many people,
it will impact many businesses, and I question why this government wouldn't
want to hear from all of those who know first-hand what Bill 164 will
do for them, will do to them. For example, on the fourth day of hearings
in Tillsonburg, many delegates who had been turned away showed up anyway,
and a number of them did attempt to speak, much to the disconcertion of
the Chair. To that end, on that fourth day of hearings I did table a motion
to the finance committee, and I'll just quote in part:
"Whereas the House leaders negotiated four days of hearings on the
Smoke-Free Ontario Act but 225 people and/or organizations applied to
testify; and
"Whereas 137
people and associations have not had an opportunity to testify, for example,
Avondale Stores Ltd. The Ontario Minister of Health ... Imperial Tobacco.
The medical officer of health ... Dr. Basrur, has not had an opportunity.
Taps Tavern, Toronto councillor Frances Nunziata; the Centre for Addiction
and Mental Health" -- did not get an opportunity to testify about
the smoke-free Ontario legislation that was resting with the finance committee.
Again, I made the
motion that the Ontario government continue to consult with the remaining
137 applicants, both for and against this piece of legislation. My motion
was defeated by the Liberals.
Now, while this government
may not want to hear what these people have to say, I'm pleased to report
that they really aren't muzzled altogether. In fact, public hearings are
slated for June 13 in Windsor -- again, no matter what this government
decides to do with the bill today. So to some extent, at least in Windsor
in a few days, people will have another opportunity to have a say.
If you would allow
me, Speaker, to take a few more minutes -- and I know I have until midnight.
You know, we won't be able to hear a lot of that testimony, but I would
like to take a closer look at what some of the groups were telling us
in committee.
In Tillsonburg, one
of our speakers was a Norfolk county councillor, Roger Geysens. Mr. Geysens
is a tobacco farmer -- a former tobacco farmer, I should say. I feel that
it would be important -- I'll quote in part from some of his testimony.
The Norfolk sand plain hosts rural communities with a diverse agricultural
base. "Many of our commodity groups find themselves in difficulty,
and Norfolk county has lobbied government for assistance for all our commodities.
I'm here today to talk to you about tobacco. The tobacco industry has
been the mainstay of Norfolk for 50-plus years. It provides employment
income to a large share of families in this community, and the ripple
effect is seen throughout all of Norfolk."
I will mention that
the Norfolk sand plain extends not only across Norfolk, but into Middlesex,
certainly Elgin county, Brant county and Oxford county.
Mr. Geysens went on to say on behalf of county council: "The tobacco
industry faces many uncertainties. The federal and provincial governments
and Norfolk county have all acknowledged that the tobacco industry is
declining and that Norfolk will suffer social and economic losses, especially
with close to 60% of the tobacco produced in Ontario grown in Norfolk.
"There are a number of factors driving this decline," he explained
to the finance committee: government policies being one; high taxes, of
course; illegal cigarettes, as I've mentioned earlier; tobacco imports;
and, of course, the lower consumption of tobacco, certainly the lower
legal consumption of tobacco, albeit I think we all recognize that the
illegal consumption of tobacco is increasing -- something that really
flies in the face of the spirit or the principle of this legislation before
us this evening.
Mr. Geysens presented
some figures: "Between 1990 and 1992, an average of 81 million pounds
of tobacco were marketed annually from Norfolk, generating $159 million
of farm income and employing 3,965 full-time equivalent employees, and
that does not take into consideration the value added" to the crop.
I think of Simcoe Leaf in the town of Simcoe. I think of the millions
of cigarettes that are being manufactured now at Six Nations. I think
of the Podium brand that is now being manufactured in Caledonia, in Haldimand
county. In 2003, this "dropped to 56 million pounds marketed from
Norfolk, generating $126 million of farm income and employing" now
down to "2,523 people." If you compound the difference between
the $126 million and the previous $159 million, that's a loss of $200
million depreciated over 10 years, and that's a loss of 1,450 jobs.
People and businesses will be affected in all economic sectors. In Norfolk,
the greatest effect is, of course, being felt by the farmers, as both
their equity is eroded and their profitability wanes dramatically. But,
you know, within rural communities especially, the social effects may
have as important an impact as the economic effect. Communities will change,
obviously. People's lives will be affected somewhat dramatically and will
be altered permanently.
We've already lost
a number of businesses and the jobs they provided, and I think this bears
repeating. Delhi Foundry was a major employer, a major manufacturer, a
seller of specialized tobacco equipment. It's closed. Harley Smith, tobacco
equipment suppliers: closed. I mentioned that Jacob's Greenhouses, Delhi
Dodge and Blue Star Ford have all closed. Our own Norfolk Co-operative
-- the Norfolk Co-op has been there since I think 1918 -- is now restructuring
under bankruptcy protection. These are just a few. There are so many empty
retail stores in our downtowns, in particular in the town of Delhi, and
those that remain were so dependent on a tobacco-based economy that they're
barely surviving.
There's been considerable
discussion, over the years, of alternatives to tobacco and alternative
crops and ways of trying to enable growers to transition to other economic
activity. Norfolk county alone was 30,000 acres dedicated to tobacco production.
Again, it's not so much a problem of finding something to grow -- you
can grow just about anything down there except citrus, bananas and other
tropical crops -- it's a problem of trying to find something to grow that's
not only profitable but sustainable, something that would provide a decent
income for our families that will not collapse basically the ag economy,
other commodities that grow on the Norfolk sand plain.
We can grow just
about anything. The problem is, how do you market it and whom do you sell
it to? That's the question, and that is a question that, in my view, does
require the expertise of our Ministry of Agriculture and Food and some
of our experts with respect to rural economic development.
If you look at the past, two diversification programs have been implemented
for tobacco growers. One was called the alternate enterprise initiative
program, which ran from 1987 to 1992. A second one was called the tobacco
diversification program, and that one ran from 1994 to 1999. Few of the
projects that were funded under either one of those programs stood the
test of time. If we define a successful outcome according to whether a
project resulted in a sustainable enterprise, then essentially these earlier
programs were unsuccessful. Both of them really didn't make it.
1920
Based on these kinds of results, it would seem that there are few alternatives
to replace tobacco. We have to bear in mind that any transition will take
decades. Indeed, there were once some 3,000 or 4,000 and, at one point,
up to 4,500 farm families growing flue-cured tobacco, again, in Brant,
Oxford, Elgin, Norfolk and Middlesex. Thousands of families over those
years have been put out of work and forced to close down and start over
again. Now we have another 1,000 families who are threatened and forced
to go right back to square one, in part as a result of the impact of this
particular legislation and this government's -- and I quote the health
minister -- "war on tobacco." What are these people going to
do?
Again, a Norfolk county councillor went on to tell us, "You can grow
anything in Norfolk county. Tobacco farmers have, over the years, built
up the area to where you can produce almost anything." As he pointed
out, "30,000 acres has an impact on everybody else if it's one particular
commodity."
In 1988, asparagus,
peanuts and tomatoes were all touted as the answer during the decline
at that time in tobacco production. The asparagus industry just about
collapsed, again, because of the increased acreage. We've certainly seen
the very significant decline in ginseng prices. Again, this is where we
need some help. This is where we need some market research.
This was a theme
that was picked up by Harold Schooley. He testified before the finance
committee. He's research chair with the Ontario Fruit and Vegetable Growers'
Association. He made a case, and really gave us, and I would certainly
say he gave this government, something to think about as far as future
direction for the tens of thousands of acres in southern Ontario. Mr.
Schooley told us that the overall economy of Ontario, especially in the
counties that I've mentioned -- Norfolk, Brant, Oxford, Elgin -- is significantly
impacted by tobacco. This was once a vibrant industry. He made reference
to the 4,500 growers managing, at that time, 210,000 acres of land. They
were producing over 100,000 acres of tobacco. Now we're down well below
1,000 or perhaps 750 growers growing 30,000 to 35,000 acres of tobacco
on 70,000 acres of land that they own. The remaining land would be woodland
or crop rotation; rye, for example. A further decline, obviously, is anticipated.
I would point out
that, as Mr. Schooley was testifying, you could see tobacco farmers come
into the back of the hall and walk into the adjoining room. The reason
they were coming in was not to hear the finance committee hearings; they
were coming in to submit their bids to exit the industry and to end two,
three or four generations of tobacco farming.
Mr. Schooley went on to say that the present acreage generates over $150
million just to the local economy, which obviously, would have a very
significant impact if lost. But the decline to this level has caused not
only untold hardship for their producers but also for local businesses
and the local communities like Delhi, which I described earlier.
As tobacco acreage
declined, government programs were set up in an attempt to enable an orderly
transition into other crops. This did not work out very well. This is
not easy. It's not easy to take a small tobacco farm with a crop solely
oriented to Norfolk sand that's based on irrigation technology. It's very
difficult. Tobacco farmers are not large. You can't replace it with corn
and soybeans, for example. That's not viable. Part of my income comes
from soybeans. I'm involved in a partnership. You need about 1,000 acres
to put together soybeans. You can't grow soybeans on 50 acres, make a
living and put your kids through school.
They need some kind
of economic activity, ideally a crop to replace an income of about $1,000
an acre to remain viable. If not, they lose their farm. When a farmer
loses their farm, they lose their house. The family is gone. You've got
to move into town and maybe live in an apartment. However, because the
acreage is so small, much of the alternative would be horticultural crops,
but the acreage of these crops is very small as well. The people who are
already growing the existing horticultural crops already have their customers.
They're already filling that consumer demand.
A move by tobacco
growers into these other horticultural crops would obviously create a
supply imbalance, not only in my area but elsewhere across Ontario. It
would create hardship for the existing horticultural producers and also
for the new people coming in. There are examples of this happening already.
I know that the last two falls I've certainly noticed in our area farmers
disking down pumpkins that they had no market for, no ability to sell.
However, there can
be a future for the horticultural industry to expand in our area and for
tobacco farmers to be part of that. The tobacco belt -- Mr. Schooley made
this clear as well -- has the potential to be the largest, the most diverse
and the most innovative fruit and vegetable growing area in Canada. Tobacco
farmers can take credit for building up the land. This weekend, I attended
an opening ceremony for an interpretive centre at the St. Williams Forestry
Station. The Norfolk sand plain was logged over in the mid-1800s. By the
early 1900s, it was blow sand. People were forced off the land at that
time. Since 1908, based under the St. Williams tree farm we have seen
close to 100 years now of reforestation on the Norfolk sand plain, and
part of that in more recent years, certainly from the 1920s, involved
tobacco growers and what they did to bring that land back to production.
So we have an excellent
land base. We have the kind of soil that is ideally suited to tobacco,
but much of it is also suited to ginseng, asparagus, tomatoes and other
crops. These soils are very productive. We're blessed as well with a climate
that allows for the production of a very large variety of fruits, vegetables
and herbs. Where else in Canada can you grow sweet potatoes and peanuts
alongside tobacco? These are all southern crops. They do very well in
our area.
The farms have access
to abundant water for irrigation. They have the irrigation equipment,
the greenhouses, the bunkhouses, the storage barns and the kilns for drying.
The infrastructure is there. The local businesses are there to not only
sell the equipment, especially the specialized equipment that's required
for things like potatoes, ginseng and asparagus, but also the infrastructure
is there to service that kind of equipment. They have the bunkhouses to
house labour. I have worked in tobacco and have stayed in these bunkhouses.
Farmers down there have the experience in managing the large labour crews
that are required for tobacco, the same kind of labour crews that are
required for most specialty and horticultural crops.
1930
In my opinion, there is an opportunity to enhance irrigation-based agriculture
on the Norfolk sand plain. In trying to get away from some of the negative
impacts of this legislation that will put farmers out of business, I ask
this government to consider an idea to pipe raw water from Lake Erie to
be used not only for irrigation-based agriculture but also, once it's
properly treated, to serve municipal needs. Towns like Tillsonburg, Simcoe,
Delhi, Cortland and Waterford are all on wells. There may be a business
case to be made to pipe water to these communities, water that is available
initially for ag irrigation and then, once treated, for municipal use.
In fact, I would like to see this government explore the feasibility of
Lake Erie water continuing to be piped north to serve communities like
Brantford and Kitchener-Waterloo, which draw very heavily on the Grand
River.
If I can go back
to Mr. Schooley's testimony:
"We have the ability to grow right here," -- in Norfolk county
-- "using Canadian rules and regulations around ... food safety,
worker welfare, pest control products" -- I made mention of the insecticides,
herbicides, fungicides and rodenticides, for that matter, that really
have become a factor in modern-day commercial agriculture -- "and
environmental stewardship, produce that could replace imports from countries
where we have no such control" -- over what's sprayed on those products.
"Furthermore, export opportunities abound, as we are a day's drive
from half the population of North America" -- and an hour and a half
to Toronto, and can readily access, within a day, markets in both Chicago
and New York City.
"Premier Dalton
McGuinty has spoken about the 800-pound gorilla on his back called health
care costs. What is now called diabesity is the fastest-growing health
concerns for Canadians," and, I would assume, for this government.
"Increasing the consumption of fruits and vegetables" -- there
is a link with alleviating such problems as obesity, cancer and heart
disease. "Health-conscious eating has come into vogue, but it needs
to become the norm. You have all heard the catchphrase, `You are what
you eat.'" There is a case to be made to have government involvement
and incentives for Canadian horticulture and accrue those beneficial impacts
to the health of Ontarians. Another factor to consider is if this government
could see its way clear to helping with the transition out of tobacco
farming.
"Our ethnically diverse, more health-conscious population has created
opportunities for horticultural crop producers. The market for value-added
and niche-market horticultural products is growing. This is expanding
the demand for ... fresh and processed horticultural crops, for specialty
crops like herbs and essential oils and for non-traditional crops,"
which are consumed by various ethnic communities in our larger urban areas.
Going back to ginseng,
already the Norfolk sand that is used to grow tobacco is also the world's
largest production centre of ginseng, right here on tobacco sand. But
there's a lack of processing and a lack of packaging. Technology is really
growing by leaps and bounds in the horticultural industry. For example,
I shared some freshly packaged apple slices the other day in the Legislature,
actually, with the member from Halton, my seatmate Mr. Chudleigh. These
apples by and large are empire apples grown in Norfolk county. They're
sliced in Burlington. They're distributed through McDonald's. Again, there
are alternatives for this land down there that this government is presently
putting out of business. I think that was Mr. Schooley's main point. The
government is putting one aspect of farming out of business down there,
and it's felt locally that it is incumbent on this government to invest
in research and innovation to try to bring along some alternatives.
The county of Norfolk
has commissioned a report. It's entitled, Norfolk at the Crossroads: Directions
for a Prosperous Future in Norfolk County. This was prepared by TACT,
the Team Advising on the Crisis in Tobacco. One of the recommendations:
"An agri-food innovation centre to be established in Norfolk will
greatly enhance the capacity of local industry to capture new and expanded
markets for horticultural products. It will also provide opportunities
to add value to farm products, thereby increasing local jobs and profits.
The University of Guelph will play a leadership role to coordinate research
efforts and transfer knowledge to producers, processors and others in
the value chain."
I've certainly had
a number of discussions with farmers and with researchers locally, and
I think there is a lot of merit in this idea of an agri-food innovation
centre, a centre to bring into one location the research capability, the
development, the information transfer, the technology development, whether
it's for new crops, for value-added technology, really to pull together
a cluster to create a synergy.
The University of
Guelph presently operates what locally we call the hort station. It's
on the Blueline. It's a horticultural research station just outside of
Simcoe. Very significant research has been done already with respect to
strawberries; of course, we export strawberry plants from our area. Research
has been done with respect to raspberries, sweet potatoes, cabbages and
cucumbers. I think the time is right for an ag innovation centre, potentially
to rejuvenate and to invigorate this area. It's on its knees right now,
actually, as a result of this particular piece of legislation.
As I discuss the
impact of this legislation on tobacco-growing communities, I would be
remiss if I didn't make reference to input to this government from the
Ontario Flue-Cured Tobacco Growers' Marketing Board in the person of their
chairman, Fred Neukamm. In testimony before the finance committee, Mr.
Neukamm indicated that these policies, although intended to have one effect,
are in fact causing unintended consequences which compromise the government's
objectives. For example, high tobacco tax levels result in high demand
for cheaper contraband and counterfeit products. Criminals make these
cigarettes readily available to both adults and young people; they do
not check for ID.
According to government
policies, high taxes supposedly restrict youth access to tobacco products.
In fact, high taxes can and are driving cigarettes into the hands of young
people through illegal channels. As well, the government is losing tax
dollars every day. There are no taxes paid on black-market sales. According
to your own finance department officials, tax evasion is a recognized
problem and was one of the factors taken into consideration at the time
of the latest tax increase of $1.25 per carton, rather than the $2.50
increase that your government had been instituting before January of this
year.
1940
Current tax levels are also creating an upsurge in the value-for-money
cigarette market. Consumers are demanding cheaper products. In contrast,
Minister Smitherman has stated that it's one of his goals to increase
the cost of cigarettes. The question is, what effect does cheaper imported
tobacco have on this government's policy? The answer: It allows cigarette
manufacturers to keep prices down while maintaining profits. Cheaper imported
tobacco means cheaper cigarettes. That is a fact, and it's compromising
this government's own health goals. Obviously illegal, back-of-the-trunk
tobacco at $25 or $30 a carton, where you don't pay taxes in a native
community, compared to the regular price of $60, is quite a bargain.
The price is down;
the demand is up, especially among young people and that cadre of people
who can ill afford high-priced cigarettes. It's simple economics.
We've recently heard
of new money for smoking cessation programs, but the reality is that more
must be done to curb the underground market, because the harder you make
it to get legal cigarettes, the harder people will try to sniff out the
cheaper, unregulated, counterfeit, contraband product. By allowing this
criminal activity to continue, price-driven, you're essentially placing
the health of these smokers at even more risk. Again, it doesn't make
much sense to me.
Your policies have
to take into consideration the real marketplace out there with respect
to tobacco. I remind the members opposite that the government's tax hikes
have seen the price of a carton rise by $6.25 since November 2003. I've
indicated that the number of smoke shops in my riding has risen exponentially.
Again, why wouldn't people go there to pay $25 or $30 a carton? Why pay
$60 a carton? For that reason, we now have close to 300 smoke shops that
have sprung up on both Six Nations and New Credit, just south of Brantford.
Mr. John R. Baird
(Nepean-Carleton): How many?
Mr. Barrett: Close
to 300, John.
We heard a lot of input and testimony from the corner stores in Ontario.
I regret to inform you that while the Ontario Convenience Stores Association
and the Ontario Korean Business Association took the time and effort to
hold a media conference right here at Queen's Park, not one government
member was present to hear what they had to say. By the same token, I
am beginning to question whether any of the government Liberal members
opposite will have the fortitude to rise in the House tonight to make
a presentation to defend their own bill. However, we do have until midnight.
We'll see if anybody is going to speak up on their own piece of legislation,
other than perhaps a token two minutes.
At any rate, for
those of you present on the government benches who were not in attendance,
I can tell you that Howard McIntyre, president of the Ontario Convenience
Stores Association, did have some grave concerns about the direction of
Bill 164. His association represents over 7,000 convenience stores within
Ontario. They employ over 50,000 Ontarians just at the store level. As
a whole, the industry generates over $6 billion in economic activity every
year. As well, the Ontario Korean Business Association serves another
2,400 stores. Every day in the corner stores across Ontario, 1.5 million
people come in to purchase product.
The request at that
news conference was to not amend the bill to allow a complete ban on back-wall
retail displays. What did this government do? It amended the bill to allow
a complete ban, albeit a ban that would not come into effect until the
year 2008. What the McGuinty government has just done is created an election
issue for 2007.
A couple of years'
difference will really do nothing to mitigate the concerns of the convenience
stores. They have the safety and the security issues that I mentioned
before. The Korean businessmen have indicated to us that 30% of their
stores will go bankrupt because of this legislation.
I am wrapping up. I regret that I have not --
Interjection: You're
running out of time.
Mr. Barrett: I know we have until midnight. I would like to speak further.
I would like to address the issue of Royal Canadian Legions and veteran
halls that have been done in. I would like to address the issue of those
charities that will lose their source of income from bingo halls.
Am I being cut off,
Speaker?
Mr. Baird: On a point of order, Speaker.
The Acting Speaker: I regret to say that your time is up, but there's
a point of order by the member for Nepean-Carleton.
Mr. Baird: On behalf
of the member for Haldimand-Norfolk-Brant, I would like to ask for unanimous
consent that his voice not be silenced and that he be given an additional
hour to speak.
The Acting Speaker:
Is there unanimous consent that we give the member an additional hour?
I don't think there is.
I'll move now to
questions and comments.
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