Canada’s Big Tobacco Settlement Falls Short: Provinces Face a Massive Financial Gap in Covering Tobacco-Related Costs, Says National Lung Health Alliance

TORONTO, March 06, 2025 (GLOBE NEWSWIRE) — The National Lung Health Alliance (NLHA) acknowledges today’s approval of Canada’s $32.5 billion Big Tobacco settlement, but Canada’s most powerful lung health advocacy network warns that the funding is nowhere near enough to cover the true cost of tobacco-related disease and addiction in Canada.

While this settlement was intended to offset the devastating impact of tobacco, the provincial allocations pale in comparison to the billions of dollars governments spend annually on healthcare costs stemming from tobacco use. For example, Ontario alone spends $4.2 billion each year on tobacco-related healthcare and economic losses but will receive a one-time payout of $7.1 billion — a fraction of the long-term burden.

“The provinces now have a critical responsibility to ensure that every dollar is spent wisely,” says Jessica Buckley, President & CEO of the Lung Health Foundation (LHF), the national organization spearheading NLHA’s advocacy efforts. “This means taking care of those who have been harmed by nicotine addiction in the past and investing in tobacco prevention, smoking cessation, lung disease research, mental health programs and healthcare system improvements in the future. Otherwise, this settlement will be a missed opportunity to right the wrongs of the past and reduce tobacco’s deadly toll on Canadians.”

A Call for Smarter Spending and Long-Term Solutions

The NLHA is urging all provincial governments to direct their settlement dollars toward high-impact programs that address both the health and addiction consequences of tobacco. This includes:

• Expanding lung cancer screening programs
• Investing in early chronic obstructive pulmonary disease (COPD) diagnosis and treatment
• Improving access to respiratory care
• Strengthening of youth tobacco and nicotine prevention initiatives
• Supporting smoking cessation programs for those struggling with addiction

Christopher Lam, President & CEO of the BC Lung Foundation, also stresses the need for continued policy action. “While the settlement acknowledges past harms, it does little to prevent ongoing harm. Provincial governments must consider additional measures, like a tobacco cost recovery fee, to ensure Big Tobacco contributes fairly to the healthcare costs their products create.”

Meanwhile, New Brunswick has been combating the detrimental effects of tobacco use for decades. In 2022, approximately 16% of New Brunswick residents were current smokers, a rate notably higher than the national average of 11.7% among adults aged 25 and older. “Given the province’s higher-than-average smoking rates and the significant financial burden of tobacco-related healthcare costs, the settlement funds, while beneficial, are insufficient to fully address the extensive damage caused by tobacco use in New Brunswick,” says NB Lung President & CEO Melanie Langille.

Ontario’s Share: A Drop in the Bucket?

With Ontario receiving $7.1 billion from the settlement, the Lung Health Foundation is calling on the provincial government to take swift action in deploying these funds effectively.

“A lump sum of $7.1 billion will not last long when you consider the staggering $4.2 billion Ontario spends every single year on tobacco-related healthcare costs and lost productivity,” says Buckley. “This settlement is a start, but it does not go far enough. Ontario must use this money to ensure that the generations of Ontarians harmed by tobacco are able to access the care they need while implementing long-term strategies, such as a tobacco cost recovery fee, to prevent the next generation from the harmful effects of nicotine addiction.”

Tobacco’s Effects on Lung Health

Shem Singh, Executive Director of Lung Cancer Canada, emphasizes that “anyone with lungs can get lung cancer, but tobacco use is a well-studied risk factor that we cannot ignore. In Canada, it is estimated that 72% of lung cancers are attributed to smoking. Today’s settlement decision can’t undo decades of harm, but we believe that these funds can be put to good use – especially if they’re invested into lung cancer screening that catches this disease before it becomes deadly.”

Henry Roberts of COPD Canada emphasizes that the settlement “presents an opportunity to make a difference in improving the lives of the two million Canadians who struggle to breath with chronic obstructive pulmonary disease (COPD). We must remember they are the heart of this settlement – the people who were harmed and are continuing to face stigma and insufficient support from our healthcare system.”

With Canada’s healthcare system already under strain, NLHA and its partner organizations stand ready to assist governments in ensuring these funds have the greatest possible impact on lung health.

About National Lung Health Alliance:

The National Lung Health Alliance (NLHA) is Canada’s leading advocacy network for lung health. Led by the Lung Health Foundation, the alliance includes several organizations: BC Lung Foundation, Alberta Lung, LungSask, Association Pulmonaire du Quebec, NB Lung, LungNSPEI, Lung Cancer Canada, Asthma Canada and COPD Canada.

NLHA mission

National Lung Health Alliance member organizations are currently working together to advance specific requests at the federal level based on collective decision making. Its mission focuses on three key areas: Youth vaping: Advocating for a Smoke-Free Generation; Chronic lung disease: Improving diagnostics and support care for Canadians living with chronic lung conditions like Chronic Obstructive Pulmonary Disease (COPD), Asthma and Lung Cancer; and Air quality: Reducing radon exposure and promoting healthier homes.

FOR FURTHER INFORMATION:

Contact

Rob Bailey

Email: [email protected]

Phone: 201-819-1134

Margo Rapport

Email: [email protected]

Phone: 416-895-5672