Money begins rolling out to provinces in ‘historic’ tobacco settlement
Global News
Money from a historic tobacco settlement is set to roll out to provinces and territories, but advocates are concerned about how the money will be spent.
Money from a historic tobacco settlement is set to flow to provinces and territories starting Friday, but advocates say the money needs to go towards health programs aimed at smoking cessation and youth prevention.
The settlement was approved in March by Ontario Superior Court Chief Justice Geoffrey Morawetz, with $32.5 billion in compensation to be distributed.
“There is a historic opportunity for provincial and territorial governments to invest in their provincial tobacco control strategies, allocate a significant portion of the funds to reduce smoking, reduce tobacco use,” said Rob Cunningham, senior policy analyst at the Canadian Cancer Society.
The settlement first came about in October 2024 after years of mediation between JTI-Macdonald Corp., Rothmans, Benson and Hedges, and Imperial Tobacco Canada Ltd. and the three companies’ creditors.
Plaintiffs in two Quebec class-action lawsuits, as well as provinces and territorial governments seeking to recoup smoking-related health-care costs, were among those creditors.
Under the settlement, about $24 billion will roll out to provinces and territories over the span of two decades, while plaintiffs in the two Quebec lawsuits will receive more than $4 billion to split. The claims period for those members opens Friday.
But on Friday, a portion of the overall settlement will roll out directly to provinces and territories, with Ontario and Quebec seeing the most — $1.8 billion and $1.7 billion respectively.
Canadian smokers are also being compensated from the settlement, with $2.5 billion to go towards those not included in the lawsuits. More than $1 billion will go to a foundation to fight tobacco-related diseases, with part of the money coming from $131 million taken from the amount allocated to the Quebec plaintiffs.
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