"Non-Natives face cigarette confiscation"

Smoke shops owners along the Highway 6 corridor said they have not felt the financial impact from the Ministry of Revenue's cigarette confiscation initiative, yet.

Although many cars have been pulled over and cigarettes confiscated just off the Highway 6 by­-pass to Hagersville, the shops were still packed with weekend traffic.

The Ontario Provincial Police (working with the Ministry of Revenue to ensure safe traffic stoppages and searches) were monitoring the smoke shops along Highway 6. Customers would enter the Six Nations territory, purchase cigarettes and upon leaving the territory were pulled over and their cars searched.

Acting Sergeant Aaron McPhail said that they were just informing the customers that they purchased 'illegal' cigarettes and then confiscated them.

"As you can appreciate, the people buying these unmarked tobacco products, we're trying to let them know that it's illegal, of course," said McPhail

The blitz started last Thursday with no word of how long or if it will continue.

Those pulled over are also being provided with the Tobacco Tax Act that further explains the Ministry's position. The Ministry released a tobacco tax bulletin in August of 2005 that outlined the specifics.

"Under section 87 of the Indian Act (Canada), the personal property of a registered Indian situated on a reserve is exempt from taxation. In recognition of this exemption, the Tobacco Tax Act and regulations provide for a tobacco allocation system, under which registered Indians are permitted to acquire unmarked cigarettes on a reserve for their exclusive use, exempt from Ontario tobacco tax," according to the Tobacco Tax Act.

The Ministry and the OPP are treating the cigarettes as 'illegal contraband' and informing carriers of the seriousness of the issue.

The Ministry of Revenue also said that it was illegal for 'non-Indians' to purchase tobacco products meant for First Nations people.

"On-reserve retailers who have been authorized by the minister to purchase unmarked cigarettes must sell unmarked cigarettes (which includes cigarettes which have a peach coloured tear tape) to Indians only. It is illegal to sell unmarked cigarettes to non-Indians."

The bulletin released by the Ministry of Revenue suggested that in order for Native people on the territory to sell cigarettes to other Native people, they must be registered with the Ministry.

"On-reserve retailers who have been authorized by the minister to purchase unmarked cigarettes may not possess more than the allocated number of cigarettes that they are authorized to purchase. Retailers who have not been authorized by the minister to purchase unmarked cigarettes must not possess any unmarked cigarettes."

James Logan, employee of 6 Nay Bait and Tackle Tobacco, said that the shop located directly on the Highway 6 bypass could see the OPP pulling people over but their business wasn't affected.

"It's usually slow during the weekdays but I haven't noticed a drop yet," said Logan after the weekend shift. "I know they were pulling people over up the road, I know that they are watching us. They were in a field over there watching us through binoculars."

Logan also said that he ought efforts were futile.

"I don't see how they figure that they can stop enough people to make a noticeable drop in business when so many people come through here everyday, I can't see it," said Logan. "They would have to stop so many people. So many people come to the reserve to get cigarettes I can't see where they think stopping a few would make a difference."

Steven 'Boots' Powless, owner of Pine Ridge Smoke Shop said that he thought the searches violated the rights of the customers and saw it as political posturing.

"I think the customers are going to start seeing that they have rights and that their rights are being trampled on. These searches are unlawful, they don't have to right to search them, this isn't Nazi Germany," said Powless. "They (the OPP and others) have a lot of political pressure on them from people like Marie Trainer. It's an election year and they are trying to come off as actually trying to do something. The end result is all of us people on the ground just wait, they can't really do anything."

Powless also said that his shop wasn't just about the cigarettes, his was a bigger issue, the land.

"Doesn't really matter if sales go down anyway, it's not about the business, it's about the land," said Powless. "They could keep doing these searches until everyone was afraid to come out here and buy cigarettes, we'd still be here anyway."

Jeff Hawk, owner of The Hawk Shop on Highway 6, said that he hadn't had a drop in customer yet but he was warning potential buyers of the situation.

"I haven't had a drop in sales or anything yet, this weekend was a normal weekend," said Hawk. "I've told my customers what's going on and everything. If they want to buy it I tell them straight up what could happen (they could be pulled over). A few of the customers are quite mad because they lost quite a few dollars. The cops are invading their privacy as well, why should they be told where and when they can spend their money."

Hawk said that he has had about 15 customers pulled over, searched and had their cigarettes confiscated.

Hawk also said that the operation was filled with grey areas that were being left unanswered.

"What's the difference between them (non-Natives) coming to buy cigarettes here and them coming to play bingo here? Do they go home and claim that on their taxes, I doubt it, that's untaxed money," said Hawk. "What about Weken toys when that opened? They advertised a lot for that, people lined up to get in. What about non-Natives working in our community that are paid tax free dollars. It's all the same thing, tax evasion is what they are calling it. What about all the urban Natives that live in Saint Catharines, Fort Erie, Hamilton, Brantford and Niagara Falls, can they come here with a status card and be ok?"

When the Tekawennake asked the Ministry of Revenue about all of the grey areas such as "Can a Native person from another territory purchase cigarettes in Six Nations and take them back their territory"; Are the searches limited to non-Natives; Are the searches also looking for other untaxed items", their answer was elusive.

"It is the ministry's policy not to discuss current or future investigations," said Anna Glannini (Senior Communications Officer) in a written response. "It is also the ministry's policy not to discuss with whom we are working because we could jeopardize the ultimate success of the operation."

Leroy 'Jock' Hill, Cayuga sub-chief and secretary for the Haudenosaunee Confederacy Chiefs Council, said that Confederacy Chiefs had not had a meeting about the issue as of yet. He said that it had more to do with "the OPP are just policing their own."

As of Tuesday afternoon Highway Six is still abuzz with undercover OPP or Ministry cars. Hawk said that he sees one pass his shop at least every two minutes.

There has been no word how long these stops will continue and Hawk said that it might eventually affect business.

"This might eventually affect sales, we'll have to wait and see I guess. It hasn't impacted our business but we'll have to wait and see," said Hawk. "It's a really complicated issue, I don't know what's going to happen."