Opposition questions spending plans, with P.E.I. set to get $168M in tobacco settlement

There were questions in the P.E.I. legislature this week about how the province will spend its share of a massive settlement with the tobacco industry.

The $32.5-billion agreement among Canadian provinces and territories and the major tobacco companies — JTI-Macdonald Corp., Imperial Tobacco Canada Ltd., and Rothmans, Benson & Hedges — compensates governments for health-care costs related to smoking-related illnesses.

The legal battle dates back decades.

P.E.I. is set to receive $168 million over the next 15 to 20 years.

In the legislature on Wednesday, Liberal MLA Robert Henderson asked Justice and Public Safety Minister Bloyce Thompson for details on how the money will be allocated.

"In the recent budget tabled in this legislature under revenue from provincial sources, P.E.I. is receiving a $36.4-million windfall from tobacco litigation," Henderson said.

"This money seems to be going to general revenue, but I can't find any budget lines that say how that money goes to families of smokers who have health-related deaths from tobacco. How do families claim that money?"

In response, Thompson said: "The money is designated for the health-care system to help deal with the situations from smoking over the years. It will be a great help to our health-care system and there is a way that individuals can apply for some money.

"I would be happy to table the procedure on how individuals can apply for that here today or tomorrow."

Smokers, former smokers or their representatives living in Canada will be able to seek individual compensation through Tobacco Claims Canada, but the claims process hasn't begun yet.

That's a separate process from the funding going to the P.E.I. government.

Fund to help improve smoking cessation program

Henderson also questioned Minister of Health and Wellness Mark McLane about whether any of the settlement funds will go toward groups that have been pushing for smoking reduction efforts.

"The Cancer Society and the P.E.I. Tobacco-Free Spaces have been advocating for increased funding for enhanced smoke reduction programming. Yet I see in the Department of Health and Wellness budget under health promotion, grants have been reduced over last year's allotment," Henderson said.

"Will these groups receive any funding from the tobacco settlement dollars to P.E.I.?"

McLane responded that the province is using the extra funding for preventative measures, including improvements to the smoking cessation program available through Island pharmacies.

Henderson also questioned the province on why the $36.4 million went into general revenue without a specific budget line to compensate families affected by smoking-related health issues.

In response, McLane said: "It does go into general revenues, like every other province in Canada, to continue to improve smoking cessation programs, and we talked about the lung screening program, that those investments will go towards in the future."

Elsewhere in the Maritimes, New Brunswick is set to receive about $614 million from the settlement, while Nova Scotia's share is roughly $809 million.