Rothmans, Benson & Hedges threatening to close factory over scope of proposed bill
Jump to full article: Globe and Mail (ca), 2009-09-24
Author: Steven Chase
Intro: Canadian tobacco heavyweight Rothmans, Benson & Hedges is threatening to close a Quebec factory employing more than 300 people if Ottawa doesn't narrow the scope of a bill aimed at stopping the manufacture of candy- and fruit-flavoured cigars and cigarettes.
The Harper government promised the legislation during last year's election campaign as a means of cracking down on tobacco products that appeal to children. But concerns over its Quebec impact are making Conservative MPs in that province eager to accommodate Rothmans.
Rothmans, today 100-per-cent owned by international tobacco giant Philip Morris International, says the legislation, Bill C-32, is too broad and would also ban flavourings traditionally employed to make "American-blend" cigarettes in Canada for local and export markets.
Far less popular with Canadians than Virginia tobacco cigarettes, an American blend of several tobaccos can include sweeteners or flavourings to dispel bitter or harsh tastes. These cigarettes, however, don't taste like candy or fruit.
"The current wording of Bill C-32 puts the future of RBH's factory in Quebec City in jeopardy," Rothmans spokesman Bert Van Gossum said. "RBH employs 750 people in Canada, including more than 300 in its Quebec factory alone."
Mr. Van Gossum said his company backs efforts to ban fruit- and candy-flavoured cigars and cigarettes, but says if the legislation isn't fixed it will undermine Rothmans's current business plan in Canada.
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