ST. JOHN’S, Newfoundland, Canada – New research commissioned by the Atlantic Convenience Stores Association (ACSA) shows that illegal cigarettes could account for more than 10% of all cigarettes smoked in Newfoundland.
“This is the second year that we’ve studied the prevalence of illegal cigarettes in Newfoundland and both studies indicate that it’s likely more than 10%,” said Mike Hammoud, president of the association, in a press release. “That’s way too high a number.”
The research findings are based on almost 3,000 cigarette butts collected in mid-September from 21 sites in St. John’s, Mount Pearl, Paradise, Conception Bay South, Carbonear and Avondale. NIRIC, an independent research firm that has done more than 25 similar studies across Canada, conducted the study.
The prevalence of illegal cigarettes at the 21 sites ranged from zero to a high of 26.4% along George and Adelaide Streets in St. John’s. Twelve percent of the cigarette end samples collected from outside the provincial government’s own Confederation Building were illegal.
David Button, CEO of NARL Marketing and operator of the Orangestore chain of gas and convenience outlets, pointed to a recent seizure by police as highlighting how big the illegal cigarette business is. “Police discovered and seized 100,000 illegal cigarettes at the end of September during a traffic stop near Grand Falls-Windsor,” he said. “That shipment represents more than $28,000 in lost tax revenue for the provincial government. And that was only one shipment.”
Button said that there are other serious problems associated with illegal cigarettes in addition to lost tax revenue. “First of all there is no manufacturing quality control with illegal cigarettes and these sales are benefiting criminals. That’s a real health and safety issue for communities,” he said. “Secondly, we’re wasting resources going towards discouraging youth and young adults from smoking. Thirdly, honest, hardworking and legal retailers are being hurt by these illicit sales.”
“It’s been proven in other provinces that getting tough on illegal cigarette traffickers is a good way to reduce the flow of illegal product,” added Hammoud. “The convenience store industry strongly believes that the Newfoundland and Labrador provincial government should look at enacting tougher legislation.”