"GRE CEO Report tells feds how to stop contraband tobacco products, reports machinery to RCMP and CRA"

An appearance and report by Grand River Enterprises CEO Jerry Montour at a federal committee hearing into contraband tobacco in 2008 has surfaced to haunt him just as the federal government is trying to push through Bill C-10, the Tackling Contraband Tobacco legislation that will crack down on unlicensed manufacturers of tobacco products.

Montour made a presentation before the Public Safety and National Security Committee on May 12, 2008. The federal committee was studying contraband tobacco at the time.

Turtle Island News has obtained a power point presentation Montour made to the committee, outlining a series of suggestions government agencies can take to stop the sale of unlicensed tobacco products that Montour says in his presentation is causing a "loss of market share" to G.R.E. and layoffs."

The power point also provides photos of products he entitles "Contraband products on Reserves" and explains to the committee how to identify the unlicensed products being "produced in unlicensed factories in Canada," the report says.

Montour sent a letter to Confederacy council recently in which he charged he would sue any politician or anyone that says GRE supports the government's controversial Bill C-10.

But Haudenosaunee Trade Collective representative Kris Green told Confederacy "he appeared before a federal committee that was investigating contraband tobacco in 2008."

She gave copies of the committee's hearing to the chiefs. "Read this and decide for yourselves," she said.

She told them, "you don't get invited to these hearings you have to apply to appear and be accepted. And we all know the government doesn't do anything all at once. They spend years researching and planning and this was the beginning when it was called Bill S-16."

That information, she says, could have evolved into what would eventually become Bill C-10.

Minutes from the committee hearing and the power point shows the GRE CEO asking for a "level playing" field saying he cannot compete against cheap unlicensed tobacco products.

He told the committee GRE had been licensed as a tobacco manufacturer in Canada in 1997 and paid about $500 million in tax revenue to the federal coffers at that time. But he said, his company has not seen any benefits from those tax dollars invested in First Nations communities.

He said the playing field is not level with unlicensed manufacturers selling cheaper product... "we're out there trying to sell a bag of tobacco products for somewhere in the vicinity of $28 to $35, and we have other people out there selling them at $6 a carton."

His powerpoint to the committee says the "Contraband tobacco market" is of "significant size, alarming growth, undermining regulations, impact on youth and connected to drugs, alcohol and firearms."

The power point even points out an attempt by GRE to report to RCMP and the Canada Revenue Agency (CRA) a cigarette packaging machine made in China, ordered by an "unlicensed manufacturer" that was mistakenly delivered to GRE in February of 2008.

The power point that includes a photo of the machine and identification information; says it was imported into Canada as "agricultural equipment by an unlicensed manufacturer."

The report says GRE held the shipment and reported it to the RCMP and CRA but when no action was taken the machine was delivered to the unlicensed manufacturer.

Montour also told the committee implementing a First Nation tax is not a new idea and that he has himself suggested a first nation tax system.

"You know, the idea of allowing first nations people the ability to place taxation on the products themselves is not new. I can remember, as early as the late eighties and early nineties, coming to former governments prior to this one and actually suggesting these same ideas," he told the committee.

But in his letter to Confederacy Council recently, he says the only government with power to impose taxation at Six Nations was either the Confederacy or Six Nations Elected Council.

He said until GRE took on a federal tobacco license, "we were perceived as almost iconic heroes in our community. Under the guidelines of the federal government, paying all the applicable federal taxes, our company flourished. We also founded one of the very first charities among first nations, the Dreamcatcher Fund. We've contributed over $10 million to that. The spinoff effects of our company alone have created over 1,000 jobs on first nations communities, all under the guidelines of paying the applicable federal taxes."

He told the committee to take aim at the suppliers of the raw materials to the industry.

"I've never once heard that we should find out who supplies the raw materials to this industry and bring them to task," he told the committee.

He said "I don't know how you're going to be able to manufacture tobacco products if you can't source out the raw materials."

The Sago GRE report lists the kinds of materials that could be regulated and even mentions packaging and off reserve printers.

Under packing and printing the report says documentation available to investigators includes names, addresses, bank accounts and volumes, lists possible tax fraud and copyright infringement.

He told the committee "when you have things like this happen - your product is being blatantly counterfeited and sold right in your own communities - it's discouraging."

He told the committee "Our company is a first nations manufacturer, and we took it upon ourselves to adhere to all those guidelines, only to be slapped in the face and have our product counterfeited and put right on those same packs."

He issued a warning to First Nations communities over working with organized crime.

"In this public forum I would also warn all first nations communities that allowing the organized crime element to come into first nations territories is like allowing wolves in sheep's clothing into your communities."

He told them "I'm here to make you aware that you cannot make tobacco products without raw materials. It's only just recently, thank goodness, by the actions of the government that you've restricted tobacco machinery from getting into the hands of these operations. I applaud you for that. It was a great first move. Now take all of the other necessary steps to at least make sure that there's total transparency in the industry."

He said GRE is reinvesting in first nations communities. "You saw lacrosse arenas go up, the Ohsweken Speedway, gas stations, tech companies, and a lot of other spinoff and satellite companies that were owned by the directors or people who were working within the companies that were legally compliant."

He said he has watched that growth stagnate.

"I've watched that slowly diminish. I believe it's diminishing because a lot of the time these activities involve people who don't have first nations' agendas at heart. The money is leaving the country and going to other countries that participate in activities. I'm sure you have very good policing agencies; they can help you identify them.

He told the committee "It's very difficult to even speak in front of a committee when in the back of your mind you're thinking, "Don't sell out your own people. Make sure you give your people the opportunity to go after some of that revenue stream too. It's all that your people have as a revenue stream. By the same token, as a first nations businessman, am I not entitled to a level playing field? Am I not entitled to play under the same rules as everybody else?"

He said in the United States, "if you sell unstamped cigarettes for a second or third time, the punitive damages are unbelievable. They usually result in long-term incarceration. So you can't have a mellow environment and say, "Well, we're looking out for the rights of first nations people."

He describes the First Nations retail market saying "First nations retailers who are truly committed to building their own communities only have their products for sale on first nations territories. They don't choose to have their products sold into the mainstream."

He said First Nation youth are entitled to work in a manufacturing facility as long as tobacco is legal and recognized.

But he says "Do you want them working in a facility where there are firearms at their feet because they have to fear the raids and they have to fear the aggression? Because they're desperate for those jobs, they allow themselves to work in those environments. Is that what you want for the youth?"

He asked the committee for help. "If you can help me with restricting the raw materials that go into these tobacco products and move toward legal recognition, you will truly make Canada a safer place."

Under question Montour told the committee "If you come to some reserves - for example, Six Nations - it looks like a war zone right now. It truly does not look like the Canada that we all want our first nations kids growing up in. It's not a normal environment for a young person to grow up in, and if they have to work in a tobacco factory that's unregulated, how does anybody know whether there are firearms and other things and activities in there? Nobody will be able to answer that."

He said he is not welcome in those factories.

MP Rick Norlock Northumberland-Quinte West, ON asked Montour.

"On Friday, May 9, there was an article in The Hamilton Spectator by Leroy Hill, secretary for the Six Nations traditional government, indicating that the first nations are developing their own laws to deal with tobacco issues. Have you heard anything about these intended laws - how they'll be enforced or who'll enforce them?

Montour said "I know they're not in place right now, so it would be irresponsible of me to comment. If it's a work in progress, they need to apply it."