Ontario and "Big Tobacco" target First Nations
Ontario seizing legal products, GRE wants local business licensing
By Lynda Powless and Stephanie Dearing, Writers
The tobacco war is on with both Ontario and the big five tobacco companies taking aim at First Nations manufacturers with First Nations jurisdictions at risk of becoming the first casualty of the war over money.
Six Nations needs to start regulating its businesses and industry, including its lucrative tobacco industry, or face imposition of provincial jurisdicition here Six Nations Band council was warned Monday.
Grand River Enterprises (GRE) has launched a more than $5 million lawsuit against Ontario, who has been "illegally" seizing their products, Chantell Montour, GRE lawyer told band council Monday.
She asked the band council’s committee of the whole, to pass a "voluntary" business licensing bylaw that would in effect push provincial jurisdiction out of the picture. Under the bylaw all cigar, tobacco, cigarette retailer manufacturers would pay the band a monthly fee of $1 per carton, while a cigar tobacco cigarette retailer would pay a a fee of 10 cents per carton monthly to the band. It also calls for restaurant owners to pay 2% of their revenue annually to the band, convenience stores to pay 2% of all non-tobacco sales annually to the band.
The licence would be voluntary, she stressed. It would translate into GRE paying $1.2 million every six months in fees.
She told council, without licensing, they could face provincially imposed jurisdiction on businesses here, because the council has failed to impose its own regulations.
"You are leaving a void that Ontario will fill," she said.
Both Six Nations band council and the Confederacy Council had been working on joint tobacco industry regulations and licensing two years ago. A committee had been established but it stalled.
Confederacy secretary Leroy Hill said the tobacco committee presented a full report to Confederacy Chiefs but the chiefs did not act on the report.
Band council had attempted to regulate business licensing at Six Nations two years ago but that too stalled.
In the meantime Ontario has declared an unofficial war against First Nations tobacco manufacturers, having seizing even legally licensed products on highways.
Coincidentally Ontario’s economic war comes just as "Big Tobacco’s" five major corporations, including Imperial Tobacco, Philip Morris, Altria Group, Rothmans and Benson & Hedges launched a third-party claim against several First Nations tobacco manufacturers from Quebec and Ontario. The five are seeking to draw First Nations into Ontario’s $50 billion lawsuit against the major five corporations. That suit seeks damages for health-care related costs resulting from what Ontario says are tobacco related illnesses. The five corporations claim First Nation manufacturers should also be liable.
In addition the five are suing First Nations manufacturers for what it describes as illegal competition.
The "Big 5" launched their suit in May, just as Grand River Enteprises launched its suit against Ontario seizing of its products .
GRE accuses Ontario of a "malicious, and reckless course of conduct in a wanton, willful and reckless disregard of First Nation and constitutional rights.”
It accuses Ontario of acting in a "calculated manner" to cause injury and damage to the company.
Since May of 2010 Ontario has been seizing GRE products to the tune of over $2 million in products and continue to seize the products right up until April of 2011.
Montour said the delivery trucks are seized, the product taken, the drivers charged and then all charges are withdrawn but the products or a value of the products have not been returned Williams said police are stopping trucks for windows that "are too tinted or saying trucks may be overweight.”
The seizures are taking place despite the fact that GRE holds the same type of licensing as the "Big 5 " tobacco corporations, including a federal licence to manufacture tobacco products, Ontario Tobacco Tax Act certificates and permits relating to the manufacture, sale possession, storage wholesaleing and transportation of GRE tobacco products. It also holds Ontario permits to possess, store and sell its unmarked cigarettes.
GRE holds an Ontario exporter certificate, importer certificate manufacturer certificate interjurisidictional and transporter certificates, wholesaler permits.
Ontario has refused to provide GRE with a license to sell its products off reserve.
GRE suit also challenges Ontario’s tobacco allocation system as "unconstitutional." That system deems how many cigarettes First Nations people are allowed to purchase.
ONTARIO WAR
Ontario launched a economic war against Six Nations Grand River Enterprises that could be based on racism and discrimination First Nations usinesses face says one band councillor.
"There is so much racism and discrimination against native businesses and people," says councillor Ross Johnson, who has also been involved in the tobacco industry for a number of years.
Chantell Montour said council passing the voluntary bylaw would assist the company in its court case against Ontario’s Minister of Finance and its Minister of Revenue.
"It would show that you are regulating the industry yourself." She told council’s committee-of-the-whole it was within their jurisdiction to pass the bylaw, an authority given by the Indian Act.
But council postponed making any decision.
Councillor Ava Hill said she doubted the bylaw would be approved by the Minister of Aboriginal Affairs. She said the bylaw if approved by council has to go to Ottawa to the Minister of Aboriginal Affairs for final approval.
District 3 councillor Roger Jonathon accused GRE of not living up to an earlier promise to help Six Nations. "You made this promise to us when you first opened and what happened. We haven’t gotten anything," he said.
GRE president Steve Williams told council the company did provide the band with $70,000 in funds that were seized by the RCMP when band council invested the funds in an off reserve bank.
He said in addition the company purchased land next to the arena for the band to allow expansion of the community’s recreational facilities.
He said GRE established the Dreamcatcher Fund and donates millions to children. He said the company hires 357 people. "I don't know what else you want from us."
The Dreamcatcher Fund has since become an international foundation helping First Nations in both Canada and the U.S.
GRE’s latest court case, filed in mid-May, promises to set a precedent for First Nation cigarette manufacturers should GRE win.
Montour said that after GRE took the province to court in 2000 for a similar matter, "We haven’t had any problems with them until 2010."
Montour told council, "Ontario wants to be able to tax and control cigarettes on reserve. But Ontario does not provide services to First Nations.
"They can’t tax here because they don’t send money here to help the community. They don’t provide services," she said.
Williams said GRE was not getting any help on the issue from the federal government, even though the company pays Canada "$80 million a year in excise taxes." Committee of the whole failed to make any recommendation to council to adopt the bylaw.
Instead they will hold another meeting possibly as early as Thursday morning.
Councillor Melba Thomas said community input was needed before a bylaw could be passed.
Councillor Ava Hill said it may not take the form of a bylaw knowing that the Minister would not approve it.
Council will ask its policy analyst to provide an opinion on the proposed bylaw.
GRE is also proposing the bylaw to several other First Nations.
http://www.theturtleislandnews.com/daily/mailer_stories/jun292011/1tobacco.html
Ontario seizing legal products, GRE wants local business licensing
By Lynda Powless and Stephanie Dearing, Writers
The tobacco war is on with both Ontario and the big five tobacco companies taking aim at First Nations manufacturers with First Nations jurisdictions at risk of becoming the first casualty of the war over money.
Six Nations needs to start regulating its businesses and industry, including its lucrative tobacco industry, or face imposition of provincial jurisdicition here Six Nations Band council was warned Monday.
Grand River Enterprises (GRE) has launched a more than $5 million lawsuit against Ontario, who has been "illegally" seizing their products, Chantell Montour, GRE lawyer told band council Monday.
She asked the band council’s committee of the whole, to pass a "voluntary" business licensing bylaw that would in effect push provincial jurisdiction out of the picture. Under the bylaw all cigar, tobacco, cigarette retailer manufacturers would pay the band a monthly fee of $1 per carton, while a cigar tobacco cigarette retailer would pay a a fee of 10 cents per carton monthly to the band. It also calls for restaurant owners to pay 2% of their revenue annually to the band, convenience stores to pay 2% of all non-tobacco sales annually to the band.
The licence would be voluntary, she stressed. It would translate into GRE paying $1.2 million every six months in fees.
She told council, without licensing, they could face provincially imposed jurisdiction on businesses here, because the council has failed to impose its own regulations.
"You are leaving a void that Ontario will fill," she said.
Both Six Nations band council and the Confederacy Council had been working on joint tobacco industry regulations and licensing two years ago. A committee had been established but it stalled.
Confederacy secretary Leroy Hill said the tobacco committee presented a full report to Confederacy Chiefs but the chiefs did not act on the report.
Band council had attempted to regulate business licensing at Six Nations two years ago but that too stalled.
In the meantime Ontario has declared an unofficial war against First Nations tobacco manufacturers, having seizing even legally licensed products on highways.
Coincidentally Ontario’s economic war comes just as "Big Tobacco’s" five major corporations, including Imperial Tobacco, Philip Morris, Altria Group, Rothmans and Benson & Hedges launched a third-party claim against several First Nations tobacco manufacturers from Quebec and Ontario. The five are seeking to draw First Nations into Ontario’s $50 billion lawsuit against the major five corporations. That suit seeks damages for health-care related costs resulting from what Ontario says are tobacco related illnesses. The five corporations claim First Nation manufacturers should also be liable.
In addition the five are suing First Nations manufacturers for what it describes as illegal competition.
The "Big 5" launched their suit in May, just as Grand River Enteprises launched its suit against Ontario seizing of its products .
GRE accuses Ontario of a "malicious, and reckless course of conduct in a wanton, willful and reckless disregard of First Nation and constitutional rights.”
It accuses Ontario of acting in a "calculated manner" to cause injury and damage to the company.
Since May of 2010 Ontario has been seizing GRE products to the tune of over $2 million in products and continue to seize the products right up until April of 2011.
Montour said the delivery trucks are seized, the product taken, the drivers charged and then all charges are withdrawn but the products or a value of the products have not been returned Williams said police are stopping trucks for windows that "are too tinted or saying trucks may be overweight.”
The seizures are taking place despite the fact that GRE holds the same type of licensing as the "Big 5 " tobacco corporations, including a federal licence to manufacture tobacco products, Ontario Tobacco Tax Act certificates and permits relating to the manufacture, sale possession, storage wholesaleing and transportation of GRE tobacco products. It also holds Ontario permits to possess, store and sell its unmarked cigarettes.
GRE holds an Ontario exporter certificate, importer certificate manufacturer certificate interjurisidictional and transporter certificates, wholesaler permits.
Ontario has refused to provide GRE with a license to sell its products off reserve.
GRE suit also challenges Ontario’s tobacco allocation system as "unconstitutional." That system deems how many cigarettes First Nations people are allowed to purchase.
ONTARIO WAR
Ontario launched a economic war against Six Nations Grand River Enterprises that could be based on racism and discrimination First Nations usinesses face says one band councillor.
"There is so much racism and discrimination against native businesses and people," says councillor Ross Johnson, who has also been involved in the tobacco industry for a number of years.
Chantell Montour said council passing the voluntary bylaw would assist the company in its court case against Ontario’s Minister of Finance and its Minister of Revenue.
"It would show that you are regulating the industry yourself." She told council’s committee-of-the-whole it was within their jurisdiction to pass the bylaw, an authority given by the Indian Act.
But council postponed making any decision.
Councillor Ava Hill said she doubted the bylaw would be approved by the Minister of Aboriginal Affairs. She said the bylaw if approved by council has to go to Ottawa to the Minister of Aboriginal Affairs for final approval.
District 3 councillor Roger Jonathon accused GRE of not living up to an earlier promise to help Six Nations. "You made this promise to us when you first opened and what happened. We haven’t gotten anything," he said.
GRE president Steve Williams told council the company did provide the band with $70,000 in funds that were seized by the RCMP when band council invested the funds in an off reserve bank.
He said in addition the company purchased land next to the arena for the band to allow expansion of the community’s recreational facilities.
He said GRE established the Dreamcatcher Fund and donates millions to children. He said the company hires 357 people. "I don't know what else you want from us."
The Dreamcatcher Fund has since become an international foundation helping First Nations in both Canada and the U.S.
GRE’s latest court case, filed in mid-May, promises to set a precedent for First Nation cigarette manufacturers should GRE win.
Montour said that after GRE took the province to court in 2000 for a similar matter, "We haven’t had any problems with them until 2010."
Montour told council, "Ontario wants to be able to tax and control cigarettes on reserve. But Ontario does not provide services to First Nations.
"They can’t tax here because they don’t send money here to help the community. They don’t provide services," she said.
Williams said GRE was not getting any help on the issue from the federal government, even though the company pays Canada "$80 million a year in excise taxes." Committee of the whole failed to make any recommendation to council to adopt the bylaw.
Instead they will hold another meeting possibly as early as Thursday morning.
Councillor Melba Thomas said community input was needed before a bylaw could be passed.
Councillor Ava Hill said it may not take the form of a bylaw knowing that the Minister would not approve it.
Council will ask its policy analyst to provide an opinion on the proposed bylaw.
GRE is also proposing the bylaw to several other First Nations.
http://www.theturtleislandnews.com/daily/mailer_stories/jun292011/1tobacco.html
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