The federal government is holding discussions about whether and how to help southern Ontario tobacco farmers get out of the business, but agriculture minister Chuck Strahl says the farmers continue to hurt their cause by asking for too much.
Industry leaders say they need an exit package worth $1 billion to deal with their debts and allow them to switch to different crops. They propose that the money come from higher tobacco taxes and suggest it be distributed among the 1,500 quota holders.
Strahl said that is too much money for the 600 tobacco farmers who grew crop last year.
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He said the growers are asking for a government-wide strategy that ranges from tax changes and border crackdowns on smuggling to community redevelopment and infrastructure money.
“That’s the kind of program they want and they say it’s easy to do,” Strahl said May 1. “I am holding meetings amongst officials from all those departments to see what we can do as a co-ordinated effort but the ask that they have is still too much. It almost takes the wind out of your sails because there’s no way I can go to cabinet and say ‘I’ve got a billion dollar package for a few hundred farmers.’ “
Industry troubles could spell political trouble in the Haldimand-Norfolk riding of citizenship and immigration minister Diane Finley in the next election. She has been urging her government to come up with a package.
In 2004, she took the seat from then-agriculture minister Bob Speller in part by complaining that the Liberals were doing too little for tobacco farmers, although Speller did convince his government to spend $67 million on a limited exit program.
Strahl said it is not a “mean thing” to be honest with the industry about how government views their demands.
“We are doing a senior departmental blue-sky thinking on what we could do collectively and what would that look like, so that’s happening,” he said. “But we’re not close to a settlement and the amount on the table right now is in my opinion actually hurting their cause because it’s making it very difficult for this government or anybody to say that’s within the realm of possibility.”
