August 01, 2008

DELHI, Ontario – The Government of Canada is providing more than $300 million to Ontario’s flue-cured tobacco producers, including $286 million for a Tobacco Transition Program to help them exit the tobacco industry, and $15 million for community development initiatives.

The announcement was made today by the Honourable Gerry Ritz, Federal Agriculture Minister, at the Delhi Tobacco Exchange Auction, joined by the Honourable Diane Finley, Minister of Citizenship and Immigration and MP for Haldimand-Norfolk, and Joe Preston, MP for Elgin-Middlesex-London.

"Minister Finley has been a tireless proponent of an exit package for tobacco farmers," said Minister Ritz. "As such, the Conservative government has been committed to finding a responsible solution. I’ve said it before and I will say it again: the Conservative government is committed to putting farmers first."

The Tobacco Transition Program will provide transition and exit assistance to producers interested in exiting the sector. Payments will be based on proposals by the Ontario Flue-Cured Tobacco Growers’ Marketing Board and accepted by the government. The program will provide federal funding of $1.05 per pound per quota, which is consistent with the federal portion of the Board’s latest request.

"Through our work with the Ontario Flue-Cured Tobacco Growers’ Marketing Board our government has produced real results and shown our commitment to farmers," said Minister Finley. "Tobacco producers and their families will be able to bring closure to what has been a very stressful time. This program is available to help producers exit the industry, transition to other crops, or find new opportunities outside agriculture."

"This is not only a win for farmers, it’s a win for all tobacco-affected communities," said MP Preston. "Since the Community Task Force was established by Minister Ritz, we have been working with mayors and community leaders, and the task force to find solutions that will address the long term impact this challenging year has had on local communities."

The $15 million being provided for community development is to help communities transition to a non-tobacco based economy. Also in attendance was the Member of Parliament for Oxford, Dave Mackenzie, who is Parliamentary Secretary for the Minister of Public Safety, as well as Members of Parliament Dave Van Kesteren and Bev Shipley.