TORONTO - Ontario is looking to become the latest jurisdiction to go after tobacco companies for misrepresenting the health risks of smoking and costing the province billions of dollars.
Attorney General Chris Bentley has introduced new legislation that, if passed, could allow the provincial government to seek billions of dollars in damages from the three big Canadian cigarette manufacturers: Imperial Tobacco; Rothmans, Benson and Hedges; and JTI-Macdonald.
"Ontario taxpayers should not have to pay for health-care costs if they are caused by alleged wrongs by others," Bentley said Wednesday.
"This is about holding tobacco companies accountable."
The legislation is based on a similar bill in British Columbia that alleges tobacco companies marketed light cigarettes as safer than regular ones, and targeted their marketing toward children.
It is also alleged the companies conspired to hold back research about the harmful effects of tobacco and to undermine the health warnings that had been issued, Bentley said, noting those allegations have yet to be proved in court.
Bentley wouldn't speculate about how much money the government could reap from such lawsuits, saying only the amount would be "substantial."
Michael Perley, director of the Ontario Campaign for Action of Tobacco, said a successful lawsuit could bring in as much as $60 billion.
"Mike Harris sued the tobacco industry in a New York state court in 2000 (and) he was asking for $40 billion," Perley said.
"Ten years later, with 10 years more costs and inflation -- we could be looking at a $50-billion to $60-billion amount asked in recovery."
The biggest impact of such a lawsuit, he added, wouldn't be financial but protective.
"If you look at the U.S. master settlement agreement from 1999, there are many restrictions now in law in the U.S., like no more cartoon characters like Joe Camel," Perley said.
British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan and Manitoba have all passed similar legislation.
The first lawsuit against tobacco companies was pursued by a group of four U.S. states in the mid-1990s, and led to the 50-state 1999 Master Settlement Agreement with the tobacco industry.
Under that settlement, the industry agreed to pay $246 billion over a 25-year period for health-care costs that resulted from the use of its products.
McGuinty had shied away from pursuing the tobacco companies when B.C. initially went after them, but Bentley said he is ready to tackle a lawsuit now because B.C.'s efforts yielded positive results.
If Ontario doesn't act now, it could also miss its chance to sue JTI-Macdonald, which is under bankruptcy protection.
"British Columbia has to get permission from the court to pursue its claim against that company, and Ontario doesn't want to lose its chance to make its claim," Bentley said.
The proposed bill would give the government the right to sue the companies directly for any alleged wrongdoing and allocate liability by market share, as well as measure the health-care cost to taxpayers of tobacco-related illnesses.
Tobacco use accounts for the deaths of about 13,000 Ontario residents each year -- or 36 deaths per day and almost 500,000 hospital days annually.
The $1.6 billion used to treat smoking-related illnesses could provide funding for eight large community hospitals or a year's funding for 2,000 MRI units, Bentley said.
Progressive Conservative critic Christine Elliott said she agrees with the principle behind the legislation, but wondered if this should be the government's top priority since any cost recovery will be years away.
"It's a question of is this a cost-effective type of recovery," she said.
"Let's look at recovering the hundreds of millions of dollars in lost tax revenues arising out of the sale of illegal cigarettes in Ontario."
Ontario's auditor general said in December that the province misses out on $500 million in lost tobacco taxes, and he blamed a lack of political will to deal with the issue.
Bentley said Wednesday the lawsuits won't include contraband cigarettes because he believes people in the province would rather the government focus on those accused of wrongdoing.
The government has already banned smoking in vehicles with a child present. Smoking is also outlawed in Ontario workplaces and in public areas such as bars and restaurants.
