CTV – W5: Cheap Smokes Floor Canadian Cities

http://www.ctv.ca/CTVNews/WFive/20110128/w5-illegal-cigarette-market-110129/

If you could operate a business that involved low risks and high profits, tobacco would be your commodity of choice. The government has lost $2 billion from the sale of contra-banned cigarettes from Native Reserves. Cigarettes sold illegally off the reserve go for $3 dollars a pack, vs. the in-store over the counter price of $10 dollars. Why wouldn’t consumers buy contra-banned? It seems ideal to pay less and get more. Teenagers have firsthand experience with buying cheap cigarettes and are persuaded to do so easily. No wonder teen smokers start young; there are no warning labels on the cartons sold from the reserve. Research shows that more than half of teen smokers have tried contra-banned cigarettes and they make up 30% of the cigarette market. Cheap cigarettes are easily accessible from convenience stores, online, and from vehicles.
How does the government plan to solve this epidemic of contra -banned cigarettes? Their solution is to legally license manufacturing plants on the reserves so that the cigarettes can be sold off the reserve legally. It’s bad enough that ½ men, and 1/3 women will have cancer at some point in their lives. How can you plan to increase the production of one of the largest commodities that will ultimately kill your consumer? That concept boggles my mind. But, it works. There is no substitute for an addiction like smoking, thus creating a virtually inelastic market.
The CEO for Grand River Enterprises stated “the tobacco industry has enhanced life.” He obviously doesn’t realize the industry he’s involved in. With that said; who will take the responsibility? Who will stand up for the health of our consumer and economy? There seems to be a barrier between the government and its issues with cultural sensitivity. The police can’t enforce laws because politicians don’t want to step on any toes and create problems. What does that say about our government system? Are they weak and powerless standing beside the corporation? The government complains that they’ve lost $2 billion dollars from the selling of contra-banned cigarettes, yet nothing’s been done. The biggest and more disturbing issue is that nothing will continue to be done until a partnership is formed between the government and reserve manufacturers and contra-banned cigarettes can be sold legally.

By: Cait Kelly