The streets of Montreal will be safer now that 81 year old Gerald O`Riley has been packed off to the Big House for five years.
We hope Mr. O`Riley makes good use of his time in prison. Since Canadian prisons are smoke free, it will give him the chance to kick the habit. Not only that, but the Canadian prison system is famous for its many innovative programs to rehabilitate offenders.
This could be the beginning of a brand new life for him!
Showing posts with label cigarette smuggling Canada. Show all posts
Showing posts with label cigarette smuggling Canada. Show all posts
Wednesday, July 2, 2014
Sunday, April 14, 2013
Wherever the law creates an opportunity, the desperate will exploit it
Smuggling has been with us forever.
Over the last twenty years or so cigarette smuggling has become one of the drivers of economic sustainability among some First Nations in Canada. In fact, on some reservations it's become the main driver.
The Montreal Gazette provides a reasonably fair and balanced overview of the business. While they do have the obligatory reference to really bad (white) gangsters, they acknowledge that this is a business run by and for First Nations.
And the overall tone of the article is remarkably non-judgmental.
Which is as it should be. Chief Simon is merely following in the footsteps of the Kennedys and the Bronfmans. You do what you have to do, and when circumstances permit, you go legit.
One thing that Gazette story doesn't spell out is how that Akwesasne reservation came by the high-tech cigarette manufacturing machinery that allowed them to get into the game in the first place. Imperial Tobacco, manufacturers of 70% of the cigarettes smoked in Canada, used to have cigarette factories in Montreal and five hours down the road in Guelph, Ontario.
Being a world-class multinational, Imperial Tobacco was constantly on the lookout for ways to cut the labour component of their cigarette costs. They did this by constantly upgrading their cigarette-making machinery.
The old machinery, still absolutely workable, was routinely sold for its scrap value at a junk-yard near Montreal. Somewhere along the line the proprietor of said junk-yard had an epiphany.
"Maybe there's somebody who would pay a premium for this machinery. After all, it still works... maybe I could get more out of it than the scap metal value?..."
He found someone who was willing to pay more than the scrap metal value, and the rest is history. I think that's what's called a win-win. A nice windfall for the scrap dealer; a viable business opportunity for the First Nations.
Alas, the "tough-on-crime" gang in Ottawa seems determined to put an end to this happy story.
Over the last twenty years or so cigarette smuggling has become one of the drivers of economic sustainability among some First Nations in Canada. In fact, on some reservations it's become the main driver.
The Montreal Gazette provides a reasonably fair and balanced overview of the business. While they do have the obligatory reference to really bad (white) gangsters, they acknowledge that this is a business run by and for First Nations.
And the overall tone of the article is remarkably non-judgmental.
Which is as it should be. Chief Simon is merely following in the footsteps of the Kennedys and the Bronfmans. You do what you have to do, and when circumstances permit, you go legit.
One thing that Gazette story doesn't spell out is how that Akwesasne reservation came by the high-tech cigarette manufacturing machinery that allowed them to get into the game in the first place. Imperial Tobacco, manufacturers of 70% of the cigarettes smoked in Canada, used to have cigarette factories in Montreal and five hours down the road in Guelph, Ontario.
Being a world-class multinational, Imperial Tobacco was constantly on the lookout for ways to cut the labour component of their cigarette costs. They did this by constantly upgrading their cigarette-making machinery.
The old machinery, still absolutely workable, was routinely sold for its scrap value at a junk-yard near Montreal. Somewhere along the line the proprietor of said junk-yard had an epiphany.
"Maybe there's somebody who would pay a premium for this machinery. After all, it still works... maybe I could get more out of it than the scap metal value?..."
He found someone who was willing to pay more than the scrap metal value, and the rest is history. I think that's what's called a win-win. A nice windfall for the scrap dealer; a viable business opportunity for the First Nations.
Alas, the "tough-on-crime" gang in Ottawa seems determined to put an end to this happy story.
Tuesday, March 12, 2013
Tough-on-crime Harper gang gets more tougher on more (Aboriginal) crime
How ironic that this story comes out mere days after there was a minor kerfluffle in the Canadian media about the outrageous over-representation of Native Canadians in the prison system.
Four percent of the population takes up almost a quarter of all prison spaces? What could possibly be wrong with that picture?
Harper's tough-on-crime storm troopers are honing in on the illicit tobacco trade. The guys and gals who framed this proposed law understood full well that it is aimed squarely at putting even more First Nation folks in prison.
That's due to accidents of geography and tax law. Canadian governments of all stripes pride themselves on being world leaders in putting warnings on cigarette packs, but they are hopelessly addicted to cigarette taxes.
Indians have the right to purchase tobacco without paying taxes. That's one of the benefits that went their way in return for them handing us the continent.
150 years later, selling those tax-free smokes on to white folks has become a viable business opportunity on many Indian reservations. In many cases it's the only viable opportunity available to our Aboriginal neighbors. That's resulted in Canada's native population having, on paper, by far the highest cigarette consumption rate in the world.
The fact that the Harper government goes down this road at all gives the lie to claims that they deal "nation to nation" with the Aboriginal population and treat them as equals. If that were true it would be totally up to First Nations to decide who to sell cigarettes to.
This heavy-handed criminalization of tobacco trafficking also provides a nice contrast to how white Canadians have historically been treated when they are involved in the smuggling of "contraband."
Not sure how many members of the Bronfman tribe still call Canada home, but their fortune derives from patriarch Sam doing exactly what these Indian entrepreneurs are doing today.
Four percent of the population takes up almost a quarter of all prison spaces? What could possibly be wrong with that picture?
Harper's tough-on-crime storm troopers are honing in on the illicit tobacco trade. The guys and gals who framed this proposed law understood full well that it is aimed squarely at putting even more First Nation folks in prison.
That's due to accidents of geography and tax law. Canadian governments of all stripes pride themselves on being world leaders in putting warnings on cigarette packs, but they are hopelessly addicted to cigarette taxes.
Indians have the right to purchase tobacco without paying taxes. That's one of the benefits that went their way in return for them handing us the continent.
150 years later, selling those tax-free smokes on to white folks has become a viable business opportunity on many Indian reservations. In many cases it's the only viable opportunity available to our Aboriginal neighbors. That's resulted in Canada's native population having, on paper, by far the highest cigarette consumption rate in the world.
The fact that the Harper government goes down this road at all gives the lie to claims that they deal "nation to nation" with the Aboriginal population and treat them as equals. If that were true it would be totally up to First Nations to decide who to sell cigarettes to.
This heavy-handed criminalization of tobacco trafficking also provides a nice contrast to how white Canadians have historically been treated when they are involved in the smuggling of "contraband."
Not sure how many members of the Bronfman tribe still call Canada home, but their fortune derives from patriarch Sam doing exactly what these Indian entrepreneurs are doing today.
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