Madam Speaker, I have a question for the Minister of Finance or, perhaps, the Minister of Health. It would be appropriate for Mr. Pollard wearing either hat. I think Mr. Pollard was quoted in the media, saying that he is considering the possibility of raising our territorial tobacco taxes in order to replace lost revenue. I just wonder, has the Finance Minister made a decision, at this point, on whether or not he will raise territorial tobacco taxes to replace lost revenues? It would probably have a positive effect on the perversity factor and it would protect the health, especially of young people, of the Northwest Territories.
Question 48-12(5): Decision On Increase In Territorial Tobacco Tax
In the Legislative Assembly on February 10th, 1994. See this topic in context.
Question 48-12(5): Decision On Increase In Territorial Tobacco Tax
Item 5: Oral Questions
February 9th, 1994
Page 64
Michael Ballantyne Yellowknife North
Question 48-12(5): Decision On Increase In Territorial Tobacco Tax
Item 5: Oral Questions
Page 64
The Speaker
Thank you. The Minister of Finance, Mr. Pollard.
Return To Question 48-12(5): Decision On Increase In Territorial Tobacco Tax
Question 48-12(5): Decision On Increase In Territorial Tobacco Tax
Item 5: Oral Questions
Page 64
John Pollard Hay River
Thank you, Madam Speaker. Madam Speaker, we find ourselves, geographically, in a very difficult situation because the extreme eastern part of the Northwest Territories is dependant on supplies from Quebec. The middle portion relies on Manitoba and, of course, we, in the west, either deal with BC in a small way or we deal with Alberta. We are getting trapped in the situation that Ontario finds itself in and that is, there is a jurisdiction, particularly in the east, that has lowered its taxes.
If I could just give you some idea, in Montreal the prices dropped from $47 a carton down to $22.73 a carton. Merchants in Iqaluit are already saying to me that I have to follow suit because the effect on them has been $62 down to $53.01 a carton in Iqaluit. They are saying that at $22.73 a carton in Montreal versus $53.01 a carton in Iqaluit, smuggling is going to be on the increase.
Having set the scene about the difficulty of the geography, certainly the western provinces have agreed, at the Health Ministers conference, that they were not going to follow the federal government's line. They also stated that they were somewhat annoyed at the federal Minister of Health for not fighting stronger to keep these taxes in place because there was going to be an increase in consumption of tobacco. That's been proven in the past.
Tomorrow, I will be talking to the RCMP, Madam Speaker, to discuss the problems of enforcing laws in the Northwest Territories in this regard. I will also be seeking the counsel of other jurisdictions in this area, the Yukon, BC, Alberta, Manitoba and Saskatchewan -- I already know where Quebec is at -- to see what they're going to do. From that, I'll be able to advise Cabinet on a decision to make. Personally, I have been lobbied by two Members of this House that we should move into the federal tax room and keep tobacco taxes high in the Northwest Territories and, hopefully, keep consumption of cigarettes down. Thank you, Madam Speaker.
Return To Question 48-12(5): Decision On Increase In Territorial Tobacco Tax
Question 48-12(5): Decision On Increase In Territorial Tobacco Tax
Item 5: Oral Questions
Page 64
The Speaker
Thank you, Mr. Pollard. Item 5, oral questions. The honourable Member for Nahendeh, Mr. Antoine.