Smuggling clampdown welcomed

Friday, May 16, 2008

by DON STONEMAN

The strategy spells out losses suffered by manufacturers and governments, reduced government revenue, increased spending chasing criminals, a serious threat to public safety and health. It points to a study conducted by legitimate manufacturers that found that 22 per cent of Canadian smokers consume illegal cigarettes, up from 16.5 per cent the previous year.

Contraband cigarettes hurt farmers at least as much as governments and manufacturers, Vandendriessche told Better Farming on Friday and the damage goes beyond the shrinking of the Ontario tobacco crop by 85 per cent in 10 years. Tobacco farmers are afraid to leave their homes and barns for even a short time, she says because they fear unsold tobacco will be stolen from their barns.

Thefts have increased drastically and are linked directly to organized crime and contraband cigarettes. Returning to the farm from even a short time away “we look right at the barn to see if the doors are ajar,” she says. While she hasn’t been robbed other growers have. “I have a wicked dog out there,” she says, as well as a neighbourhood watch program.

The strategy paper points out that tobacco farming revenue has fallen considerably and represents a temptation for farmers to “liquidate their stocks through illicit channels.”
Tempting as it is, it’s not in a producer’s best interest to take that route, she says: “Farmers need to be part of the solution.”

The board is calling for a buyout program that will “right size” the industry so that some producers will get out and some will continue tobacco growing, but not for an unlimited time. “We are not talking about a future (for the industry) for ever and ever,” she emphasizes.

The industry’s future is limited. “We know that and we aren’t arguing that.”

Currently the flue tobacco board is negotiating with manufacturers to sell the crop that has already been planted and with governments for a buyout plan.

Vandendriessche and the board are promoting a buyout strategy that will remain in place until the last growers are ready to leave.

The RCMP strategy paper says contraband tobacco seizures continue to increase even though policing resources aimed at the crime has been reduced. The profits from illegal tobacco contribute to illegal drugs and weapons smuggling.

Vandendriessche says “as a mom” she is upset that cheap, illegal cigarettes are available so close to schools. Buyers don’t have to drive to find illegal cigarettes, she says. “They will come to you.” BF