Dec 8, 2011

Group Warns Against Smoke Shop

The Dakota-run Chundee smoke shop is an illegal smoke shack that opens the back door for organized crime to expand into western Canada, top executives for Canada's biggest lobby group for convenience stores warned Monday.

Alex Scholten, president of the Canadian Convenience Store Association and vice president Michel Gadbois flew to Winnipeg to release evidence of an illegal sale they obtained with a sting operation they claim they organized at the site two days ago.

The evidence is a videotape that shows a teen under 18 being sold cheap Winston cigarettes without being asked to present ID or proof of Indian status.

"We've seen the situation where teenagers become resellers. Teenagers can make $1,000 to $1,500 a week reselling tobacco products in schools," Gadbois said.

That's a phenomenon linked to a host of other shady practices in the contraband tobacco industry that's been connected to organized crime in other smoke shacks based on First Nations in Ontario and Quebec, the executive alleged.

"This is the tip of the iceberg. The floodgates are going to open, beginning in Manitoba," Gadbois warned.

They said they wonder if the Dakota owners are aware of the risk they're running by opening up a smoke shack in Manitoba.

"We do not believe the laws to protect under age youth and the laws to protect the public interest should be used to advance the land claim issue," Scholten said.
The executives said they object to the sale of tax-free cheap smokes to non-First Nations customers, at the expense of business to law-abiding convenience store owners.

They are delivering letters to the offices of Health Minister Theresa Oswald and federal Public Safety Minister Vic Toews urging a crackdown now.

"It's not out of control yet in Manitoba," Scholten said.

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