P.E.I. to get $168M as part of cross-Canada tobacco settlement

P.E.I. is getting $168 million through an historic settlement with tobacco companies.

Prince Edward Island is getting $168 million as part of an historic tobacco settlement that has created reverberations across Canada.

Last week, Ontario Superior Court Chief Justice Geoffrey Morawetz approved a $32.5-billion settlement between three major tobacco companies and the provinces and territories of the country. The case, which involves JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd., stretches back to the 1990s.

Claimants in the case sought compensation for smoking-related health-care costs.

“This litigation dealt with alleged deceitful practices and other wrongdoing by the tobacco companies from the 1950s to the 1980s,” said P.E.I. Health and Wellness Minister Mark McLane in a news release. “Those practices resulted in extraordinary costs to our healthcare system.”

In the release, the P.E.I. government said it expects to receive $40 million upfront with the rest of the $168 million to be distributed over the next 15-to-20 years.

Nova Scotia is receiving roughly $809 million while New Brunswick is getting approximately $614 million through the settlement.

P.E.I. claims it has cut the smoking rate from 25 per cent to 11 per cent over the last 20 years.

For more P.E.I. news, visit our dedicated provincial page.