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Subject: HISTORIC TOBACCO LEGISLATION HOLDS MANUFACTURERS ACCOUNTABLE FOR PREVENTION AND HEALTH CARE COSTS
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<BODY vLink=3D#993366 link=3D#000090 bgColor=3D#ffffff><B>These are =
historic documents=20
for informational purposes only, and do not necessarily reflect the =
policies and=20
priorities of the government of the day.</B><BR><BR><BR>
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      <H2>NEWS RELEASE</H2></TD></TR></TBODY></TABLE>
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1998:113<BR>
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    <TD><STRONG>FOR IMMEDIATE RELEASE - June 11, 1998</STRONG> </TD>
    <TD align=3Dright><STRONG>MINISTRY OF HEALTH</STRONG> =
</TD></TR></TBODY></TABLE>
<BLOCKQUOTE>
  <H2 align=3Dcenter>HISTORIC TOBACCO LEGISLATION HOLDS MANUFACTURERS =
ACCOUNTABLE=20
  FOR PREVENTION AND HEALTH CARE COSTS </H2>
  <P>VICTORIA -- Two pieces of legislation introduced today by Health =
Minister=20
  Penny Priddy will fundamentally change the way the tobacco industry =
does=20
  business in B.C.=20
  <P>"The tobacco industry walks away with millions of dollars in =
profits in=20
  their pockets and takes no responsibility for paying for - or =
preventing - the=20
  health care problems they cause," Priddy said.=20
  <P>A new <I>Tobacco Fee Act</I> will allow government to charge a =
licensing=20
  fee to tobacco manufacturers selling cigarettes in B.C., and =
amendments to the=20
  <I>Tobacco Damages Recovery Act</I> will clarify the legal basis for =
lawsuits=20
  against the tobacco industry to recover health care costs caused by =
tobacco=20
  use.=20
  <P>"The <I>Tobacco Fee Act</I> is a historic piece of legislation -- =
the first=20
  and only one of its kind in Canada," Priddy said. "It is a major =
milestone in=20
  our continuing fight against the damage that tobacco companies wreak =
on the=20
  health of British Columbians."=20
  <P>The new act requires:=20
  <UL>
    <LI>tobacco companies that want to sell cigarettes in B.C. must be=20
    registered and licensed to do so. </LI></UL>
  <UL>
    <LI>tobacco companies that want to sell tobacco in B.C. must pay an =
annual=20
    licensing fee. </LI></UL>
  <UL>
    <LI>tobacco companies may not pass those licensing fees on to =
wholesalers,=20
    retailers or consumers. </LI></UL>
  <UL>
    <LI>the tobacco companies licensing fees will be used by the =
government to=20
    fund the costs to government of developing and implementing its=20
    comprehensive strategy for reducing tobacco consumption in British =
Columbia.=20
    </LI></UL>
  <P>"This is not about punishing people who are addicted to =
cigarettes," said=20
  Priddy. "It's about making the industry, and not taxpayers, pay for =
the=20
  prevention and cessation programs needed to prevent future generations =
of=20
  British Columbians from becoming victims of tobacco addiction and =
smoking-=20
  caused illnesses."=20
  <P>Total revenue from the new licence fees in this fiscal year is set =
at $20=20
  million. In future years, the amount will be set by government =
regulation. The=20
  proportion of the total amount to be paid by each tobacco company will =
be=20
  determined according to the size of its market share in British =
Columbia.=20
  Companies with less than five per cent of market share will not be =
required to=20
  pay a fee, but will have to be licensed.=20
  <P>"In other words, the more a particular tobacco company contributes =
to the=20
  problem, the more it will have to contribute to the solution," Priddy =
said.=20
  "The licence fee paid by the industry works out to eight cents on a =
pack of=20
  cigarettes -- a small contribution to make toward funding initiatives =
to tell=20
  kids and their parents the truth about the dangers of smoking."=20
  <P>Priddy said the amendments to the <I>Tobacco Damages Recovery =
Act</I> will=20
  allow for a fundamental change in how B.C. approaches the tobacco =
industry=20
  through the courts in seeking to recover health care costs.=20
  <P>"In the Minnesota trial this year, the tobacco industry was forced =
to=20
  reveal much about itself and its behavior," Priddy said. "These =
amendments=20
  reflect that knowledge, and will ensure that a full and fair =
disclosure of all=20
  the facts can take place here in B.C.=20
  <P>"There has been growing evidence in the past year that the entire =
tobacco=20
  industry has concealed the known health risks of smoking and the =
addictive=20
  properties of nicotine, and has targeted children and teenagers to be=20
  consumers of its products."=20
  <P>Priddy said the amendments will put the onus on the tobacco =
industry to=20
  prove its marketing strategy did not contribute to teenagers taking up =
smoking=20
  and adults continuing to smoke, and will ensure a full and fair =
examination of=20
  all the relevant facts.=20
  <P>Every year in British Columbia nearly 6,000 people die from tobacco =
product=20
  use, and many thousands more become ill or incapacitated. The economic =
impact=20
  on the province of tobacco-related illness, including health care =
costs, is=20
  over $1.3 billion.=20
  <P>"The lawsuit will help redress the past and force the industry, =
rather than=20
  our health system, to pay for treating smoking-caused illness, and the =

  licensing fee will ensure that the industry is forced to join our =
efforts to=20
  prevent kids from starting to smoke, and help those who want to quit," =
Priddy=20
  said.=20
  <P>
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