Update (July 19th, 2000) — Official transcripts of Senate committee hearings into Bill S-20 are now available on the Parliamentary Internet site. (See transcripts from June 6th, 8th, 13th and 15th.)

Ottawa, June 9th, 2000 — The Senate has begun hearings into a new bill to invest serious money in tobacco control, Bill S-20. This has led to an intriguing shift in the tobacco industry’s PR strategy.

Bill S-20, if adopted by both houses of Parliament, would impose a special levy on cigarettes whose proceeds would be administered by an independent foundation. This foundation would determine what means would be most effective at preventing underage smoking and then implement whatever programs it deems are necessary to this objective.

The Senate committee examining the legislation subpoenaed the CEOs of Canada’s three big cigarette manufacturers to testify yesterday with respect to the Bill. All three companies say they support the legislation, which is an interesting change from what occurred when the Senate considered a previous bill, S-13, about two years ago. However, they would like a few changes:

• Criminialization of the possession of tobacco products by minors
• Diversion of some funding into the industry-sponsored “Operation ID” program to encourage retailers to refuse cigarettes to minors
• Involvement in the management of the Foundation.

Under questioning, however, two of three manufacturers (the hold-out being Rothmans, Benson & Hedges) say they would support Bill S-20 even if none of these changes are made.

For details of the industry’s position, see the CTMC press release.

Several members of the health community also testified today. To put the tobacco industry’s position in context, it is worth comparing it with information in the NSRA’s brief on The Tobacco Industry and Youth. The industry has a long history of offering co-operation on the issue of underage smoking, but is perfectly aware that its long-term profitability would be severely jeopardized if youth uptake of smoking was actually affected.

Physicians for a Smoke-Free Canada presented a brief on the industry’s changing disinformation tactics, which we will provide a link to as soon as it is available.

Meanwhile, the House of Commons yesterday approved two new sets of regulations under the federal Tobacco Act, including Canada’s revolutionary new system of cigarette pack warnings. The Standing Committee on Health made no amendments to the regulations, but has told Health Canada to produce reports on several possible loopholes in the warnings system, as well as on job impact. The committee also wants reports on tobacco taxation, and on the possibility of imposing a gradual reduction in nicotine levels in cigarettes. (See Standing Committee on Health report.)

Based on comments at a press conference yesterday, the tobacco industry appears to be poised to challenge the new regulations in court as soon as they are officially approved by cabinet, probably later this month. The industry’s position both on Bill S-20 and on pack warnings is likely to become an issue in future litigation in several provinces.

Other information

• Senator Colin Kenny, who introduced the Bill, has devoted part of his website to the Tobacco Youth Protection Act.

Press coverage

• “Big Tobacco backs down,” Globe and Mail, June 6th, 2000. [no longer available on-line]
• “The New Age merchants of death,” Globe and Mail. [no longer available on-line]
• “Two tobacco firms support special levy on cigarettes,” Canadian Press. [no longer available on-line]
• “Canadian tobacco executives make rare admission of risk,” Reuters.
• “Two tobacco giants back anti-smoking bill,” CBC News.
• "Les fabricants de tabac devant le Sénat canadien," Radio-Canada.
• "Les fabricants de cigarettes veulent empêcher les jeunes d'allumer," Le Devoir.
• “Deux fabricants de tabac appuient le projet de loi du Sénat pour les jeunes,” Presse canadienne.