"An Industry is Born: Tobacco Production Funds Community Needs"

Across First Nation communities an industry is growing communities.

New homes are being built, cars bought, even businesses are being launched.

And its coming from tobacco.

After Big Tobacco was caught in 2010 and forced to pay a half a billion dollars to federal and provincial coffers, quietly in First Nation communities, armed with money from that same contraband scandal, the entreprenieral spirit was taking hold.

If Big Tobacco can do it, why not us.

"It brought it into a more sophisticated level of manufacturing and production of resource," said Shawn Brant a Mohawk activist from Tyendinaga.

He said he stood in the first manufacturing plant in Akwesasne way back before 1990 "when people were making Putters and DKs it was on a relatively simple machine in two transport trailers parked back to back."

By 1994 the industry was becoming more sophisticated. Actual production facilities started and plants opened mostly in the U.S. where tobacco was more available.

"It started with one very small manufacturing plant and grew from there."

An estimated 25 plants in First Nation communities have been federally licensed to produce tobacco products...legally.

From the granddaddy of plants Grand River Enterprises to newcomers but growing fast Deerborne, a Kahnawake Rainbow tobacco International products company.

The federally licensed plants are challenging Big tobacco's hold on the market place and winning.

And the marketplace has changed.

In Ontario the numbers have grown as the industry changed.

There are now about 25 manufacturing plants in Six Nations alone, producing new brands to a baggies packaged cigarette known as rollies and more than 200 stores selling the products.

"With the increase in pressure on the manufacturer in the U.S. it compelled a lot of manufacturers to move to more secure locations and some of them set up on this side of the border," said Brant.

As a result smuggling from the U.S. and the American product isn't as popular as it once was with plants being set up on the Canadian side of the border.

"It was safer in Canada. New York's plan was to raise taxes but it wasn't enough so like Canada is now, they are increasing enforcement."

Akwesasne is no longer a major player in Canada and with increased taxes in the U.S. the Native American tobacco industry has a wide open market.

But the shortfall Akwesasne left behind was quickly met by manufacturers at Six Nations, Kahnawake, Kanestake and Tyendinaga.

"The product in Canada is now comparable to the good high quality product that was being produced in Akwesasne so there is no need for anyone to push sleds across the river ice, or jump in boats and go and bring back a load. It isn't as lucrative or attractive as it was", said Brant.

Communities paid a heavy price during the Big Tobacco smuggling days with lives lost through drowning accidental death, or being targeted by the coast guard and border agencies. Boats were rammed and people were killed. At least 20 lives were lost bringing tobacco to the market.

Brant says the loss of lives is the irony in Canada's proposed Bill C-10 amendment.

It calls for a mandatory minimum sentence if the person is caught a second time carrying 10,000 cigarettes or more, 10 kg or more of any other tobacco product, or 10 kg or more of raw leaf tobacco, of 90 days and 180 days for a third offence. and two years less a day for a fourth or more.

"That's the irony of Bill C-10. By imposing minimum jail sentences on our people when people put their lives on the line to bring products to the market to support their family and economy I don't think imposing jail sentences is a good deteriment when you have children at home and a family and community that needs support. "BillC-10 amendment calls for up to five years imprisonment for an indictable offence and up to six months on summary conviction.

First Nations people turned from activism to entrepreneuralship.

A move, Brant thinks is a comfort to the Canadian government.

"I think government was happy to see people engage in the historical trade over the past 15 years. Those people who are engaged in resource activity are people that are willing to take risks, to step forward and utilize this as a resource to create a sound footing and foundation of an economy for our community. They are the same ones that stand on the lines when attacks against our people occurr."

As a result he says the government was content to a degree. "Because the more radical, militant people in our community were engaged in the trade and it kept them quiet as long as they are aspiring for wealth and benefits they are not standing on lines. When wealth is accumulated and you have a closet full of money you are never willing to put it at risk. So the government saw it as a means of controlling our people so I believe that's why they have allowed it to mature to the stage it is now."

Except no one expected the success it has become and now First Nation activists have access to money..

'Now they see these same people as having access to monetary resources that allows them to better fight the government and assert those positions to the deteriment of the government so now they are a liability."

Ironically the very collective nature of First Nations people is what is helping the industries to thrive.

Manufacturers have become the biggest financers of community projects and support.

"I don't know of any manufacturing enterprise or store or individual involved in the trade that doesn't feel some responsibility in contributing back to the community beyond the family and taking care of the kids.

"It's an inherent responsibility we all have. We all have gone through a struggle in our lives with slop buckets, no water, no access to the same tools or resources non-native people have and no-one ever forgets that.

He says some of the needs that in mainstream Canada are funded by government are now being funded by tobacco.

"So now while we are struggling for education or social service equality funding we are able to meet those needs within the community other than from government handouts.

Akwesasne has adopted a policy on the U.S. side where a percentage of money from every carton sold goes into a community fund that provides health care and education social funding and other service agencies.

In Kahnawake a new bylaw will see a percentage of tobacco industry revenues come back to community.

And it isn't being seen as a form of taxation in Kahnawkade but a way to fund soverign Mohawk rights.

He said in attempt by the Canadian Retailers Association to criminalize a legitimate industry is fool hardy.

"I'm not entirely sure the Canadian retailers can make that argument with any conclusive proof. The actual production within our community and support generated is quite legitimate".

Coming: The Solution: Tobacco industry and infrastructure; Court Cases: Grand River Enterprises loses major CRA battle; Court actions verse rights, are rights being lost to tobacco fights...