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CANADA:Ontario considers suit against tobacco firms() (fwd)



by Tom Blackwell
Southam News
Ottawa Citizen (1572) 
Date: Thursday, 2/25/99

               =================== TORONTO -- The Ontario government is
looking at launching the kind of lawsuit that generated a
multibillion-dollar settlement with the tobacco industry in the United
States, Premier Mike Harris said yesterday.

Lawyers have been asked to look into cases in the U.S., B.C. and elsewhere
to see if similar action would be viable here, he said. 

But if the province really must wrench more money from tobacco companies,
said an industry representative, it would be cheaper and faster simply to
raise cigarette taxes.

"We've been very clear," Mr. Harris told reporters. 

"It would be our hope that nobody ever becomes addicted to tobacco again
and that those who are can get off that addiction. We'll support any
action that accomplishes that goal."

"If we believe there is legal liability, we'll look at it." 

He also publicly distanced himself from criticism of B.C.'s new
anti-smoking package voiced by Agriculture Minister Noble Villeneuve.

Villeneuve was not representing the province when he fired off a letter to
Corky Evans, his British Columbia counterpart, Harris said.

Villeneuve complained that the B.C. measures could hurt Ontario's tobacco
industry and might encourage smuggling.

Harris and Health Minister Elizabeth Witmer insisted Wednesday the
government's chief goal is to reduce smoking levels in the province.

The premier said of Villeneuve's letter: "It's not Mike Harris's position,
it's not the government's position."

The agriculture minister was referring to a plan by B.C. to charge tobacco
companies doing business in the province a licence fee.

The province is also launching a lawsuit against the industry to recoup
health-care costs rung up by smoking-related illness.

Suits launched by several American states resulted in a
multi-billion-dollar settlement offer from the industry.

Lawyers involved in those cases have been encouraging Canadian law firms
to push for similar action here, said Rob Parker of the Canadian Tobacco
Manufacturers Council.

But there's no comparison between the two countries, he said. Higher
cigarette taxes in Canada mean governments raise more in revenue from
smoking than tobacco generates in health-care costs, Parker argued.

It would be foolish to head to court when the government could get as much
money simply by raising taxes, he said.

"It can be done by the stroke of a pen. There's no muss, no fuss." 

Harris said differences in laws between the two countries could also make
it more difficult to sue in Ontario.

"These are things we're asking questions about."		
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12:37 PM on 2/25/99