Over Conservative objections, the House of Commons agriculture committee voted last week to demand that the federal government find $275 million to help Ontario’s tobacco farmers quit the industry.
The Ontario government would be expected to come up with close to $190 million.
In a May 1 debate, opposition MPs who form a majority on the committee said the Conservative government had broken a promise.
“The federal government has to step up to the plate after 27 months and actually do something in a concrete fashion for tobacco producers in this country,” said Brant, Ont., Liberal Lloyd St. Armand, who represents some of the producers.
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He said Ottawa betrayed farmers by not including exit money in the 2008 budget despite earlier promises that there would be help. Instead, agriculture minister Gerry Ritz has set up a task force of area mayors, economic development officers, producers, industry representatives and politicians to look for ways to use existing programs to help the industry hit by low prices, falling demand and competition from illegal imports.
The government has said there is no new money available, leading to industry anger at immigration minister Diane Finley, who represents most of the tobacco producers and who in opposition had promised help.
The industry demand for an exit fund has been toned down considerably since last year.
The first demand was for $1 billion and the Conservatives said it could not be justified when there are fewer than 1,000 active producers and several hundred more quota holders.
Now, they are asking for $465 million, split between Ottawa and the provincial government in Toronto.
