Contraband tobacco hurts business, stores say

Island convenience store owners say the results of a recent study are proof that illegal cigarettes are all too easy to find.

The Canadian Convenience Store Association commissioned a team of independent researchers to collect cigarette butts from 43 sites around Atlantic Canada, including four sites in Summerside, P.E.I.

The study found 25 per cent of cigarette butts in Atlantic Canada were contraband.

Convenience store operators say the sale of contraband tobacco hurts their business.

"In P.E.I. alone, our industry lost 13.4 per cent of its convenience stores, the highest rate of decline in the entire country," said Mike Hammoud, president of the Atlantic Convenience Stores Association. "Our retailers simply cannot compete with contraband activity."

Police in P.E.I. have made some high-profile arrests and seizures of illegal tobacco in recent years.

"For example, the last one there was 70,000 cigarettes seized and the individual received fines of up to $90,000," said Denis Morin of the RCMP.

But Hammoud said that does not seem to be stemming the flow.

"Contraband tobacco sales are gaining momentum despite efforts of government and law enforcement agencies to crack down."

Store owners want governments to put more resources into law enforcement and public education.

Michel Gadbois, the vice-president of the Canadian Convenience Stores Association, said illegal cigarettes sell for 20 per cent of the price of regular brands. He said sales are mainly driven by organized crime.

The group is trying to raise the profile of their fight against illegal cigarettes in the Atlantic region.

"The first issue is public awareness, that's what it is all about; this is not a victimless crime," Gadbois said.

Gadbois said not only are convenience stores losing business, but governments are losing tax dollars and teenagers are being hooked on cheap cigarettes.