M&W) PROTECTED BY MINNESOTA TOBACCO LITIGATION PROTECTIVE ORDER
Junc 1971
STAWMENT By nm PA11', CILAIRMAN 01-- THE 01NADIAN' TOBACCO 11 Li N U FA C r U IU, S
COUNCIL, -,hnd PRZSID-'-'LNT OF 1,11PER.IAL TOBACCO PiODLICTS LTD.
on behalf of the m2t6crs of the Canadian Tobacco Manufacturer Council,. I
can say that althov,h we expected legislation, we arc, nevertheless,
concerned uith the scope and implications of the legislation which has been
-proposed.
For viore than eight years and at two official cunfcrenccs %';ith Z;ovcrr,=nt
health 'authorities, our position in the Smll)kin- nrd health controversy has
been maec clear. You are aware that wa are confronted with an indictm-ent.
WlhiCh is bz!F-0(.; C11 StaLir;tiCS uld as fcCL by virtue of
many years of repetition. The issue continucs to be a subject of
controversy amonZ; scientific experts. I can asSLIrC you, ho,.-7ever, that
the tobacco i-ousLry w-11-1- cont-inuc to pur_-:c scicntiflc
W
iv the only way the controversy can be, logically resolved.
Now, about the proposed legislation: The most punitive elements in this
Bill are @hose which restrict accepted marketing, practices.
The wisdom of such legislation ray be questioned on several counts:
rirst, experience of other COLIntries which have similar restrictions
indicates that these have little or no effect on reducing smoleine.
rar.idoxically, the to"al number of cigarettes smoked continues to increase.
..2
661321.25-465

(B&W) PROTECTED BY MINNFSOTA TOBACCO LITIGATIONJOTECTIVE ORDER
-2-
2. This Bill %.,,ill scriously restrict competition.amonO. manufacturers who
are en-aged in amrkctinv a legal product and, therefore, CxPCA' to have
available' the nortnal mirkctin3 tools to do so. The "status quo" of
comptillies will. tend Lo be frozen, at least in the short term, and the
diffiCLI ItiCS of introducin- now brands becorac greater in the competitive
marketplace.
3. The Bill has serious economic inmlications. The Industry spends ab out
*25 aullion oil all forms of advertising in Canada. -When this figure is
translated into employr,2-it of people, and into 3oods and services, it
bcconizs obvious that restrictions oii this activity are bOUnd to result in
hardshipL; to maP.)-.@,coplc in LhC markettin., field in Caziada.
4. The-implicatioas for title tobacco -rovers can be serious and damag i n,-,.
Th,! fact sheet enables you to appreciate for yourselves some of the factors
in tobacco agriculture which are placed in jeopardy.
Lot me conclude by saying that I am convinced the industry will maintain
its visor bCCaLISC soam six million adult Canadians continue to enjoy
cigaretEe swkin- for their own personal reasons of relaxation slid enjoyment.
We manufacturers will. continue to operate within whatever marketin- framework
is left to LIS.
It goess without saying that, when Ilarlia=nt has spoken, we will obey the
-law even thou,7h we continue to question the premise on which it is based.
466