New tobacco board can sue cigarette makers
Monday, June 1, 2009
© AgMedia Inc.
by BETTER FARMING STAFF
A new flue cured tobacco growers marketing board is empowered to pursue a lawsuit against tobacco companies says its chair, Fred Neukamm.
Neukamm, a former flue board chair and one of three directors appointed by the Ontario Farm Products Marketing Commission to a reduce tobacco board this week, says the new board will be able to pursue government funding for transition initiatives and continue with a lawsuit against tobacco manufacturers.
A March 25 Commission order prevented the board from pursuing these and other activities.
Establishing a process to gain input from the community is the new board’s first priority. “We wish to do that very quickly,” Neukamm says.
Tackling a reduced revenue stream and adjusting to a system involving licensing instead of auctions are other main priorities. Staff reductions are also anticipated, he says. The board currently has 17 employees.
A small contingent from the Ontario Commission met face-to-face with the tobacco board in their offices in Delhi Monday morning and announced a new board structure and appointing a new chair to the organization that represents tobacco growers’ interests, effective immediately.
A five-member interim board appointed by the Commission replaces the previous 11-member flue tobacco board. Appointments announced are Fred Neukamm, chair, Harry Vergeer and Chris VanPaassen. Two vacancies will be filled as soon as possible, says Commission chair Geri Kamenz.
The board’s composition is defined under new Farm Products Marketing Act regulations that came into effect on June 1. The new regulations also allow former tobacco producers to be board directors.
The Commission has charged the interim board, in place for 18 months, with dispersing the board’s assets among current and former growers and developing a future direction for the industry organization.
“We were in the position of having to do something, otherwise there would be no board,” says Kamenz. He explains that the previous regulations required board representatives to hold quota but the quota system was eliminated in March. While the Commission had issued an order that allowed the board to temporarily continue operations, it expired May 31.
He says the Commission decided to reduce the board’s numbers because there were only 120 licensed growers – a far cry from the 4,000 active at the industry’s high point several years ago.
Kamenz says the Commission selected “individuals that we had confidence would be able to tackle” these priorities.
Former chair Linda Vandendriessche feels the Commission was not professional in its handling of relieving her from her duties.
“Usually you have the respect to consult with the chair and then tell the chair what is going to happen. None of that happened.”
Vandendriessche says she had hoped the Commission would allow growers and former growers to elect their board at its regular annual meeting in July. The former board had presented four options on how to move forward to the Commission at an earlier meeting and she says the former board had also planned to present these at the growers’ annual meeting.
“I guess the Commission decided that they would prefer to dictate to the farmers the positions rather than let our farmers vote.” BF