Wildrose leader says Tory overtaxing to blame for cigarette scandal

While the battle continues over the RCMP's confiscation of a Hobbema First Nation Band's 14 million cigarettes, an Alberta party leader says overtaxing by the provincial government is to blame for the issue.

"I think there is a balance between how far we can go to turning a legal substance into a contraband - that's essentially what we've done," said Wildrose Alliance Party Leader Danielle Smith.

She made the comments earlier this month as guest speaker at the Wetaskiwin & District Chamber of Commerce monthly luncheon.

"Because we've put such onerous taxes on these (cigarettes), it's actually created an underground market for people who are trying to skirt away from the taxes."

Smith was responding to a question regarding a Jan. 5 incident, where the Alberta Liquor and Gaming Commission (ALGC) Hobbema RCMP conducted a record seizure of 75,000 cartons of contraband cigarettes, which could have cost the provincial government $3 million in loss tax revenue.

The illegal smokes were discovered inside a Quonset hut following a reported break and enter on the First Nations Reserve, located about 15 kilometres south of Wetaskiwin.

The Montana Band, its Chief Carolyn Buffalo and Quebec company Rainbow Tobbaco, have filed $1.5 million lawsuit against the AGLC, citing it had no jurisdiction under the Alberta Tobacco Tax Act to seize the smokes in the first place.

The suit is requesting the return of the cigarettes as well as almost $1.5 million in compensation.

Alberta Aboriginal Relations minister Len Webber told the Times, during a stop in Wetaskiwin last month, that since there is an ongoing investigation, the cigarettes will not be returned to the Montana band any time soon.

Smith said a better balance has to be struck when dealing with a legal substance.

"There are a number of vices that we recognize that we don't want to see here a proliferation of, which is why the government steps in to regulate. "Gambling is one. If you want to have a VLT, you have to go through Alberta Gaming. They don't try to stomp it out, and the reason for that is they know if they were to decriminalize it, it would create a huge black market of underground gambling activity," said Smith.