For immediate release
December 9, 2008

Illegal tobacco has serious implications for Ontario’s economy

Queen’s Park - Ontario’s Auditor General has confirmed what Haldimand-Norfolk MPP Toby Barrett has touted for quite some time: the McGuinty Liberals have lost control of the illicit tobacco market to the tune of $500 million in lost taxes.

“That equals the McGuinty government’s deficit,” Barrett said. “In tough economic times how do they justify to hard working Ontarians that they’d rather burden them with a $500 million deficit than enforce the law?

Barrett said that the Auditor General’s report proves there are serious implications to ignoring the illegal cigarette trade.

“Not only has the illicit market gone a long way in destroying the local tobacco economy but also it’s being felt on the provincial level.”

According to the Auditor General, the government’s systems and procedures for collecting tobacco taxes have not significantly changed or improved since 2001. Further, the gap has increased between consumption of untaxed tobacco products and resultant tax.

“On every occasion where I’ve questioned the government on this issue the Premier and his Ministers have claimed they are dealing with the situation,” Barrett said. “In reality they’ve allowed illegal activities to flourish, even on government-owned land.”

In the government-held riding of Brant there are 18 tobacco manufacturers and 300 smoke shacks - which do not remit taxes. The local MPP says that it’s high time the McGuinty government shut down illegal smoke shacks and illegal manufacturing in Ontario.

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