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Cuts in Canadian tobacco taxes
additional$400 million). Of the total inter-agency spending of$2749 million on
schemes such as assistance for heating to reported in 1993). But many othschemes-eg, smoking and health, low-income families, indicates the tough HIV/AIDS research requested for 1995, injury and violence control, chronic and choices that the Clinton administration 44% will be allocated for basic science environmental disease, and epidemic serhas been grappling with. Shalala focused : vices-have received no increases, which her comments on "fiscal responsibility" projects. The Centers for Disease Control and represents a cut in real terms. : while at the same time emphasising "secuPrevention will face a budget cut of$82 :: Public health initiatives that depend on rity and opportunity" in important areas. million because of changes in the way in . health-care reform-such as improving Whether appropriations committees share which childhood immunisation is to be access to health services-have been earher vision in a year of Congressional eleces were
er
funded. Within their overall budget marked$1.1 billion that will be availabletions will be put request of$2.1 billion, there is to be only if the President’s Health Security Actmonths. increased funding of the tuberculosis-preis passed. The freezing of many spending vention programme (over 27 000 new cas-programmes, together with cuts to Richard Horton
Cuts in Canadian tobacco taxes a decade-old high-tax policy Manitoba and Saskatchewan say they will aimed at deterring smoking, Canadian not cut taxes, while British Columbia says Prime Minister Jean Chretien has slashed it may raise its taxes by$5 to offset the : tobacco taxes to combat what he calls a federal cut. "breakdown in respect for the law". But all the that their Nearly provinces argue eight of ten provincial health ministers treasuries cannot absorb a loss of tobacco and a host of health groups say Ottawa’s revenues and some even say they are worried about a negative impact on the health solution to Canada’s Can$5 billion cigarette smuggling problem will result in an of Canadians. At their annual conference additional 250000 tobacco-related deaths last week provincial health ministers and billions of dollars in added health (except those from Quebec and New costs. Chretien counters that Ottawa’s Brunswick) called on the federal governnew multifaceted tobacco strategy is : ment to reinstate high taxes to deter peoessential to keeping cheap contraband cig: ple from smoking. arettes out of the hands of children and But federal health minister Diane Marleau told reporters that Ottawa has no dismantling the "organised crime networks" that dominate the black market. intention of rescinding the rollback. : Smugglers have seized 40% of Canada’s Ottawa’s new strategy also imposes an$8 $12-5 billion tobacco market, and as per carton export tax, as well as a 3-year much as 60-70% in Quebec. health-promotion surtax on tobacco manLosing$500 million a year to smugufacturing profits. The hike in the income tax rate on tobacco profits, to 30% from glers, faced with an open revolt by disgruntled retailers flouting the law by 21%, is projected to generate$200 million selling tax-free smokes, and entering a for federal coffers, but the tobacco industough election against a separatist try is hinting that it will shift production . Quebec’s Liberal government had to the US, which will put Canadians out demanded that their federal cousins slash of work. Still, Chretien said tobacco-maktobacco taxes. Ottawa has ridden to Queers should be hit hard after reaping windbec’s rescue, announcing that it will fall profit by deliberately increasing immediately cut the national cigarette tax exports to the US that they knew be smuggled back. "I believe they have by$5 per carton, and then match provincial cuts above that level to a maximum of not acted responsibly", Chretien said. : Canadian Tobacco Manufacturers another$5, for a total federal cut of$10. : Quebec (where cigarettes are available at Council president Robert Parker says it : $18-23, well under the average$48 was Ottawa’s failure to cut excessive taxes national tab) promptly cut its tax by$11 earlier that led to the trafficking. "To sug. per carton of 200 cigarettes, while neighgest we are being irresponsible because we didn’t lose a lot of money ... is ridicubouring New Brunswick, which says it is losing$50 million a year to smugglers, : lous." Parker also says manufacturers are slashed its tax by$7. : not threatening to shut down operations. Opposition Members of Parliament say But he adds that Canadian brands "are owned internationally and if US demand Chretien’s Liberals are forcing all taxpayers to subsidise smoking in Quebec. And for tobacco cannot be filled from Canada, Ontario premier Bob Rae has launched people who own the brands can always salvo after salvo at Ottawa for indulging in arrange to manufacture them elsewhere". The tobacco-makers also argue that a cheap, political concession to one there is no evidence of a correlation Rae his says province may have province. no choice but to cut taxes and lose most between cigarette prices and consumpof its annual$800 million take from tion. But health lobbyists cite a recent tobacco. Ontario health minister Ruth study by Harvard economist Robert Grier charges that Ottawa is substituting Allen-which indicates that rollbacks will "east-west [interprovincial] smuggling for strip at least$3-2 billion from government north-south smuggling". If that happens, : coffers, encourage at least 750000 more other provinces say they too will have to people to smoke (including 175000 v join the rollback bandwagon. But for now,teenagers), and drain at least$1-5billion
Reversing
party,
to a severe test
in
coming
from Medicare plans. Under the strategy, which is projected to drain$450 million from federal coffers this fiscal year alone, Ottawa will spend $185 million over 3 years on an antismoking advertisement campaign, and$150 million on beefed-up law enforcement. Chretien said enforcement efforts around native reserves will be bolstered, particularly near the three Mohawk reserves in Quebec that serve as the primary contraband pipeline and which have long contended they are sovereign territories, immune from Canadian law. "There will be no refuge for criminals ... This is one country with one set of laws that applies to all citizens and in all communities", he said. Ottawa will also raise the legal age to buy cigarettes to 18 from 16 and impose maximum fines of up to$10 000 for selling cigarettes to minors. In addition, cigarette packs destined for export will be marked differently; "kiddie" packs of fewer than 20 cigarettes will be outlawed; the location of cigarette-vending machines will be restricted; and health warnings on packages will be made sterner. Ottawa will study whether to require plain packaging of cigarettes and full disclosure of additives.
would
:
, .
470
Wayne Kondro
Restructuring blood system in Canada Canada’s health ministers have adopted a radical plan to restructure the national blood system by constraining the responsibilities of the Canadian Red Cross Society. They claim that the move is not an attack on the national agency or a thinlyveiled grab for power on behalf of their confederate in the system, the Canadian Blood Agency (CBA), but an attempt to "delineate the responsibilities" of the Red Cross and the CBA, which is made up of representatives from the provinces and territories. "There’s been some confusion between the two as to the area of authority and the lines of authority", particularly with regard to the Red Cross’ decision to build a blood fractionation plant (see Lancet 1993: 341: 1526), said Ontario health minister Ruth Grier at the conclu-
schemes such as assistance for heating to reported in 1993). But many othschemes-eg, smoking and health, low-income families, indicates the tough HIV/AIDS research requested for 1995, injury and violence control, chronic and choices that the Clinton administration 44% will be allocated for basic science environmental disease, and epidemic serhas been grappling with. Shalala focused : vices-have received no increases, which her comments on "fiscal responsibility" projects. The Centers for Disease Control and represents a cut in real terms. : while at the same time emphasising "secuPrevention will face a budget cut of$82 :: Public health initiatives that depend on rity and opportunity" in important areas. million because of changes in the way in . health-care reform-such as improving Whether appropriations committees share which childhood immunisation is to be access to health services-have been earher vision in a year of Congressional eleces were
er
funded. Within their overall budget marked$1.1 billion that will be availabletions will be put request of$2.1 billion, there is to be only if the President’s Health Security Actmonths. increased funding of the tuberculosis-preis passed. The freezing of many spending vention programme (over 27 000 new cas-programmes, together with cuts to Richard Horton
Cuts in Canadian tobacco taxes a decade-old high-tax policy Manitoba and Saskatchewan say they will aimed at deterring smoking, Canadian not cut taxes, while British Columbia says Prime Minister Jean Chretien has slashed it may raise its taxes by$5 to offset the : tobacco taxes to combat what he calls a federal cut. "breakdown in respect for the law". But all the that their Nearly provinces argue eight of ten provincial health ministers treasuries cannot absorb a loss of tobacco and a host of health groups say Ottawa’s revenues and some even say they are worried about a negative impact on the health solution to Canada’s Can$5 billion cigarette smuggling problem will result in an of Canadians. At their annual conference additional 250000 tobacco-related deaths last week provincial health ministers and billions of dollars in added health (except those from Quebec and New costs. Chretien counters that Ottawa’s Brunswick) called on the federal governnew multifaceted tobacco strategy is : ment to reinstate high taxes to deter peoessential to keeping cheap contraband cig: ple from smoking. arettes out of the hands of children and But federal health minister Diane Marleau told reporters that Ottawa has no dismantling the "organised crime networks" that dominate the black market. intention of rescinding the rollback. : Smugglers have seized 40% of Canada’s Ottawa’s new strategy also imposes an$8 $12-5 billion tobacco market, and as per carton export tax, as well as a 3-year much as 60-70% in Quebec. health-promotion surtax on tobacco manLosing$500 million a year to smugufacturing profits. The hike in the income tax rate on tobacco profits, to 30% from glers, faced with an open revolt by disgruntled retailers flouting the law by 21%, is projected to generate$200 million selling tax-free smokes, and entering a for federal coffers, but the tobacco industough election against a separatist try is hinting that it will shift production . Quebec’s Liberal government had to the US, which will put Canadians out demanded that their federal cousins slash of work. Still, Chretien said tobacco-maktobacco taxes. Ottawa has ridden to Queers should be hit hard after reaping windbec’s rescue, announcing that it will fall profit by deliberately increasing immediately cut the national cigarette tax exports to the US that they knew be smuggled back. "I believe they have by$5 per carton, and then match provincial cuts above that level to a maximum of not acted responsibly", Chretien said. : Canadian Tobacco Manufacturers another$5, for a total federal cut of$10. : Quebec (where cigarettes are available at Council president Robert Parker says it : $18-23, well under the average$48 was Ottawa’s failure to cut excessive taxes national tab) promptly cut its tax by$11 earlier that led to the trafficking. "To sug. per carton of 200 cigarettes, while neighgest we are being irresponsible because we didn’t lose a lot of money ... is ridicubouring New Brunswick, which says it is losing$50 million a year to smugglers, : lous." Parker also says manufacturers are slashed its tax by$7. : not threatening to shut down operations. Opposition Members of Parliament say But he adds that Canadian brands "are owned internationally and if US demand Chretien’s Liberals are forcing all taxpayers to subsidise smoking in Quebec. And for tobacco cannot be filled from Canada, Ontario premier Bob Rae has launched people who own the brands can always salvo after salvo at Ottawa for indulging in arrange to manufacture them elsewhere". The tobacco-makers also argue that a cheap, political concession to one there is no evidence of a correlation Rae his says province may have province. no choice but to cut taxes and lose most between cigarette prices and consumpof its annual$800 million take from tion. But health lobbyists cite a recent tobacco. Ontario health minister Ruth study by Harvard economist Robert Grier charges that Ottawa is substituting Allen-which indicates that rollbacks will "east-west [interprovincial] smuggling for strip at least$3-2 billion from government north-south smuggling". If that happens, : coffers, encourage at least 750000 more other provinces say they too will have to people to smoke (including 175000 v join the rollback bandwagon. But for now,teenagers), and drain at least$1-5billion
Reversing
party,
to a severe test
in
coming
from Medicare plans. Under the strategy, which is projected to drain$450 million from federal coffers this fiscal year alone, Ottawa will spend $185 million over 3 years on an antismoking advertisement campaign, and$150 million on beefed-up law enforcement. Chretien said enforcement efforts around native reserves will be bolstered, particularly near the three Mohawk reserves in Quebec that serve as the primary contraband pipeline and which have long contended they are sovereign territories, immune from Canadian law. "There will be no refuge for criminals ... This is one country with one set of laws that applies to all citizens and in all communities", he said. Ottawa will also raise the legal age to buy cigarettes to 18 from 16 and impose maximum fines of up to$10 000 for selling cigarettes to minors. In addition, cigarette packs destined for export will be marked differently; "kiddie" packs of fewer than 20 cigarettes will be outlawed; the location of cigarette-vending machines will be restricted; and health warnings on packages will be made sterner. Ottawa will study whether to require plain packaging of cigarettes and full disclosure of additives.
would
:
, .
470
Wayne Kondro
Restructuring blood system in Canada Canada’s health ministers have adopted a radical plan to restructure the national blood system by constraining the responsibilities of the Canadian Red Cross Society. They claim that the move is not an attack on the national agency or a thinlyveiled grab for power on behalf of their confederate in the system, the Canadian Blood Agency (CBA), but an attempt to "delineate the responsibilities" of the Red Cross and the CBA, which is made up of representatives from the provinces and territories. "There’s been some confusion between the two as to the area of authority and the lines of authority", particularly with regard to the Red Cross’ decision to build a blood fractionation plant (see Lancet 1993: 341: 1526), said Ontario health minister Ruth Grier at the conclu-