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Supreme Court rules against tobacco

By JIM FOX
Published October 2, 2005

The Supreme Court of Canada struck a blow against cigarettemakers with a ruling that allows the possible recovery of billions of dollars in public health-care costs dating back 50 years.

As well, Canada's tobacco industry faces a new challenge as a class-action lawsuit in Quebec seeks $17.8-billion (Canadian) in damages.

The unanimous Supreme Court judgment upheld a British Columbia law allowing the province to seek damages for public health-care costs going back five decades, as well as future expenses for illnesses linked to tobacco.

The court ruling also took away some traditional defenses in civil suits and makes it easier to prove a link between smoking and disease.

Other provinces are considering similar action, which could leave the industry facing damages of $80-billion.

The class-action suit is on behalf of 1.78-million Quebeckers addicted to nicotine. Each smoker is seeking $10,000 in the suit against Rothmans, JTI MacDonald and Imperial Tobacco Canada Ltd., claiming they were deceived about the true nature of the tobacco products.

Severance package condemned

Opposition politicians are condemning the possibility of a lucrative severance package for David Dingwall who resigned as head of the Royal Canadian Mint over allegations of lavish spending and questionable lobbying practices.

Revenue Minister John McCallum said a financial settlement for the one-time Liberal Cabinet minister is being considered.

Dingwall quit after it was reported that he and top aides racked up expenses of more than $740,000 last year including a BMW car allowance. He was also under fire for acting as an unregistered lobbyist prior to his 2003 appointment.

Dingwall is eligible for a $77,200 pension for his 15 years as a Member of Parliament.

Deputy Conservative Leader Peter MacKay is considering leaving federal politics to join the race to succeed retiring Nova Scotia Premier John Hamm. He said many colleagues, with the exception of Leader Stephen Harper, have encouraged him to remain with the federal party. MacKay, 40, said he'd be "short-changing myself" if he didn't consider a move to the Legislature in his native province.

--The federal Conservatives are climbing back in public opinion polls after a setback over the summer. A Decima Research poll shows the Conservatives trailed the Liberals by seven points nationally, 36 percent to 29 percent, while the socialist New Democrats were at 17 percent. The governing Liberals had a 13-point lead in June.

Canada's dollar soared to 86.30 cents U.S., a 13-year high, after a study found Alberta's oil sands to be worth $1.4-trillion (Canadian). The dollar ended the week at 86.01 U.S. cents while the U.S. greenback returned $1.1626 Canadian, before bank exchange fees.

The key interest rate of the Bank of Canada is steady at 2.75 percent while the prime-lending rate is 4.5 percent.

Stock markets are higher, with Toronto's composite index at 11,011 points and the Canadian Venture Exchange 2,159 points.

Lotto 6-49: (Wednesday) 4, 11, 21, 27, 38, 41; bonus 36. (Sept. 24) 15, 20, 32, 39, 40, 47; bonus 30.

--The British Columbia government is considering imposing a settlement to block a strike by teachers expected to begin Oct.11. Labour Minister Mike de Jong said a fact-finder's report said the Teachers' Federation and the Public School Employers' Association are too far apart for a negotiated settlement. The 42,000 teachers haven't been able to settle a contract for more than a decade, he added. Top concerns are class sizes and wages.

--Residents of New Brunswick and Nova Scotia are facing power rate increases of about 16 percent by next spring. New Brunswick Power has increased rates three times by a total of 8.9 percent since April of last year.

--Municipalities around Toronto are "down in the dumps" over an Ontario government plan to truck the city's trash around the region. A report commissioned by Toronto, York, Peel and Durham regions lists landfills near London, Hamilton, Petrolia, Cornwall, Chatham, Halton, Waterloo, Brantford and Essex-Windsor as possible sites for 3.5-million tons of trash generated in the Greater Toronto Area each year.

--Jim Fox can be reached at canadareport@hotmail.com

[Last modified October 2, 2005, 01:59:10]