Mr. Speaker, it gives me great pleasure to offer my support of Bill S-16, An Act to amend the Criminal Code (trafficking in contraband tobacco). It is another example of the commitment of this government to the safety and security of Canadians.

I am pleased to speak to the merits of the bill for two main reasons. First, by creating a new Criminal Code offence regarding the sale and distribution of contraband tobacco with mandatory minimum penalties for repeat offenders and by establishing a 50-officer RCMP anti-contraband force, the government is fulfilling the commitment it made to Canadians in its 2011 election platform.

Second, by carefully tailoring the measures in the bill, especially those related to the penalties provisions, the government has created an effective vehicle to stem the tide of illicit tobacco that is washing over Canadian society.

As I will discuss, this tide of large-scale criminal activity raises serious concerns not only for Canada's fiscal health but also for the physical health of Canadians.

Before I describe in more detail the measures proposed by Bill S-16, allow me to provide a bit of context for hon. members that may help them to appreciate the gravity of the problem that Bill S-16 seeks to address as well as the careful way in which the bill has been drafted to accomplish its goal.

At the outset, it should be noted that according to Health Canada figures, in 2011 Canada's approximately five million declared smokers consumed between 125 million and 150 million cartons of legal cigarettes. Given the illegal nature of the manufacture and distribution of contraband tobacco, it is very difficult to estimate how much market share is occupied by these illegally produced tobacco products in Canada. Studies of the issue provide figures ranging from as low as 12% to as high as 33%, with significant provincial variations.

Some of the human costs associated with illicit tobacco trade have already been mentioned. The first and most obvious is the serious health risk associated with smoking, which is exacerbated by the fact that much of the contraband tobacco is of very poor quality and contains harmful contaminants.

In the 1980s and 1990s, the trafficking problem resulted from our own legally produced and less harmful tobacco products being smuggled back into Canada after they had been exported to the United States. While this still happens, although on a smaller scale than 20 years ago, the present problem is that much of the illicit tobacco being consumed in Canada was either illegally manufactured in Canada for the United States in less than ideal conditions or is made up of counterfeit tobacco products imported from abroad.

We know that smoking legally produced tobacco products is dangerous; it is even more dangerous to smoke the adulterated or contaminated products that are provided by illegal sources.

Who is smoking contraband tobacco? Here we come to another of the human costs to which I referred.

At a time in Canadian history when smoking is declining, we find that two of the groups most likely to purchase illicit tobacco products are teenagers and young adults. These, of course, are the very people we wish to most discourage from smoking at all.

In short, the illicit tobacco industry is not only supplying an existing clientele; it is also cultivating a new clientele base that will enable it to flourish into the future.

This leads me to another and more dangerous human cost associated with contraband tobacco that I wish to mention. It has to do with the respect for the law and the attitudes that allow illicit tobacco sales to thrive in this country.

In a 2009 report to the Minister of Public Safety, the task force on illicit tobacco products pointed to four reasons that illegal tobacco products are in such demand in Canada: first, the motivation of smokers of all ages to find low-cost options to satisfy their tobacco cravings and addictions; second, low public appreciation for the harmful consequences of illegal tobacco markets; third, the ease of access to illegal tobacco products; and fourth, the fact that illicit manufacturing and sale of tobacco products was not only tolerated on first nations reserves, but was an important source of revenue there.

There is something wrong when Canadians think it is acceptable to purchase an illegal product, especially when its production and distribution is so intimately connected to organized crime activity in Canada and abroad.

One of the benefits of Bill S-16, aside from curbing the illicit production and sale of contraband tobacco would be to help raise public awareness that these are crimes that will not go unpunished.

To date, law enforcement in this area has relied on the Excise Tax Act with its focus on fines and seizure of illegal tobacco products and vehicles. While there have been some high-profile seizures, I think it is fair to say that it has not stemmed the illegal trade in any significant way. Sterner measures are clearly called for.

This is especially so in light of the known involvement of organized crime groups in this illicit trade and the fact that tobacco smuggling is often accompanied by human, drug and weapons smuggling.

In this regard, it is well accepted that the effectiveness of sanctions depends on their severity, their swiftness and their certainty. Bill S-16 would ensure severity by making the trade in illicit tobacco a criminal offence. A new Criminal Code provision would therefore outlaw possession of tobacco for sale, and the sale, the offer for sale, the transport, the delivery or distribution of a tobacco product that has not been stamped in accordance with the Excise Act.

Criminal law is a powerful tool. It would be utilized by federal prosecutors who would have concurrent jurisdiction with provincial Crown prosecutors to enforce this new sanction. The swiftness of criminal sanctions would be enhanced by the creation of a special 50-officer RCMP task force that would focus on the eradication of illicit tobacco trade.

As we know, better and swifter enforcement begins with the investigation and the arrest stage of criminal proceedings. With these new ressourses, the authorities should be able to make a real dent in the illicit tobacco industry. Mandatory minimum penalties for repeat offenders would ensure the certainty of punishment, the third criterion for effective law enforcement.

The maximum penalty for a first offence would be up to six months' imprisonment on summary conviction or up to five years' imprisonment in the case of an indictment. However, repeat offenders in cases involving 10,000 cigarettes or more, 10 kilograms or more of another tobacco product, or 10 kilograms or more of raw leaf tobacco would be sentenced to a mandatory minimum of 90 days' imprisonment on a second conviction, a mandatory minimum of 180 days on the third conviction and a mandatory minimum of 2 years less a day on any subsequent conviction.

These are serious offences. Let us recall that they are minimums. Sentencing judges are free to go beyond them on a second, third or subsequent conviction, depending on the circumstances of any individual case.

In closing, Bill S-16 deserves the support of this House and of Canadian society in general. It would tackle a serious and growing problem that deserves our immediate and focused attention. I therefore urge all hon. members to join me in supporting this worthwhile and carefully crafted legislation.

I remain ready, willing and most desirous to answer any questions members may wish to pose.

Rick Norlock