Historic tobacco settlement sees Saskatchewan receive $700 million

A monumental tobacco settlement ruling in Ontario last week will see Saskatchewan receive around $700 million.

In a news release on March 10, the Government of Saskatchewan said they are pleased with the ruling, which brings a resolution to efforts to recover funds for the provincial healthcare system from tobacco companies that have sold cigarettes in Canada.

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A compensation plan was approved by the Chief Justice of the Superior Court of Ontario and it constitutes the largest resolution of its kind in Canadian history, and the third largest ever anywhere in the world.

Tobacco companies will be required to pay out a total of $32.5 billion.

The settlement was first proposed in October after years of mediation between the companies — JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — and their creditors, which include plaintiffs in two Quebec class-action lawsuits as well as provincial and territorial governments seeking to recoup smoking-related health-care costs.

“Our government is pleased with the decision made in Ontario last week,” Health Minister Jeremy Cockrill said in the release.

“These funds will support our ongoing cancer care and prevention efforts for the people of our province.”

The release said the compensation plan would:

• Put significant amounts of money into provincial and territorial health care systems for improved treatment and care.
• Provide meaningful compensation from tobacco companies to individual victims of smoking.
• Provide clear accountability to the cigarette manufacturers for past conduct and wrongful practices.

Work is already being done in Saskatchewan and across Canada to reduce the number of people who smoke and this plan builds on that work.

The provincial government said it remains committed to supporting prevention, cessation, and enforcement of tobacco, nicotine and vapour products, particularly regarding youth.

— with files from Canadian Press

Read more:

• Premier Scott Moe has questions for new Liberal leader Mark Carney
• Looming 100-per-cent Chinese tariffs on canola leave Sask. farmers concerned
• RCMP investigating shooting death of 19-year-old man on Sask. First Nation