March 25, 2008

Ontario needs to go after tobacco firms

Ontario should follow the leads of New Brunswick and British Columbia and pass legislation enabling it to sue the big cigarettes companies to recover health-care costs associated with tobacco-related diseases. The way has been paved by those two provinces, and some American states, and it makes no sense for Ontario not to follow suit in a bid to recoup some of the funds paid by taxpayers that are directly attributable to the use of a cigarettes product.
Make no mistake, the big tobacco companies knew decades ago that their products are deadly. Heart disease, stroke, high blood pressure, cancer - the list of tobacco health ills goes on.
Dr. Richard Schabas, medical officer of health for the Hastings and Prince Edward Counties Health Unit, was one of about 100 mostly health officials who, in a letter sent about two years ago, urged Premier Dalton McGuinty to file the lawsuit.
The province declined without really explaining why. McGuinty should spell out the reasons for his decision to Ontarians.
New Brunswick passed legislation earlier this month that gave the province the legal authority to file the lawsuit against the tobacco companies. Attorney General T.J. Burke said those firms must be held accountable and that the province is moving ahead "aggressively with legal action."
Why not Ontario?
The Liberals imposed a new health tax in 2004, $750 deducted annually from pay and pensions in the form of an income tax. The government said the tax was necessary to keep the expensive health-care system running. Yet the lawsuit is a potential source of income that could negate the need for a regressive tax and provide funds to pump into health care - a system that is straining to counter the effects that tobacco has brought on our hospitals and cancer care system. Tapping into tobacco riches is the way to go - clearly provincial citizens deserve and need the money.
In Ontario, it is estimated that tobacco-related diseases cost the economy at least $1.7 billion in health-care annually, result in more than $2.6 billion in productivity losses and account for at least 500,000 hospital days each year, according to the Ministry of Health and Long-Term Care.
Meanwhile, tobacco taxes generated about $1.4 billion in 2004-05, the ministry estimated. Ontario is clearly losing more in health-care to tobacco than the weed is bringing into provincial tax coffers. For tax masters like McGuinty, that should tip the balance in favour of legal action.
Schabas made the point - correctly - that if a lawsuit is filed, it places tobacco companies in financial jeopardy.

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