Friday August 29, 2025

By Lung Saskatchewan President & CEO – Erin Kuan 

Today, the Government of Saskatchewan will begin to receive its first allocation of a federal $32.5 billion settlement from the tobacco industry. The federal tobacco settlement refers to a legal agreement under which major tobacco companies are required to compensate the Government of Canada for the significant public health harms and revenue losses their products have inflicted. These payments are shared with provinces and territories to offset health care costs and support public health investments. 

While the province has indicated that funds will flow to its general revenue fund, there has been no commitment towards directing those funds to reduce tobacco use in Saskatchewan. In their initial statements of claim, provincial and territorial governments emphasized the enormous public health impact of tobacco use and the negligent and predatory marketing behaviour of the tobacco companies. The absence of any remedial actions – like an updated tobacco reduction framework or cost recovery program – undermines the bold assertions made by the provincial governments in their initial court filings. While fiscal prudence and balanced budgets are important, the lack of investment in tobacco control and protection against further harm, particularly towards youth, would be a profound misstep - both ethically and strategically. 

The tobacco settlement funds are not just a windfall. They are the outcome of decades of harm inflicted by the tobacco industry on the health of Canadians. Saskatchewan is projected to receive approximately $700 million of the $32.5 million federal settlement; compensation intended to offset the massive burden tobacco has placed on our health care system, our families, and the lives of tens of thousands of people who have suffered and died due to tobacco-related diseases. 

Tobacco remains the leading cause of preventable death in Saskatchewan and Canada. It causes nearly one-third of all cancer deaths and contributes to chronic respiratory and cardiovascular diseases that drain our health care system and devastate families. COPD (chronic obstructive pulmonary disease) and related diseases, which are most often caused by smoking, are the second leading cause of hospitalizations in Canada and a major cause of hospital admissions and emergency room visits across the country, placing a significant strain on the health system. Currently 64,000 Saskatchewan residents live with COPD. 

These are not abstract statistics. They represent parents who never got to see their children graduate, grandparents who never met their grandchildren, and young people whose lives were shortened before they had a chance to begin. 

While we wait for a provincial commitment to use a portion of these funds for tobacco reduction, protection, and education, Lung Saskatchewan — alongside other health partners – continues to step up. Together, we recently convened a meeting of provincial agencies with expertise in public health and tobacco control. Our shared goal: to develop and recommend a framework that can guide the government in adopting a best-practice, evidence-informed approach to tobacco cessation and prevention. 

Beyond the immediate use of the settlement funds, Saskatchewan must look to the future. One effective way to ensure long-term, sustainable funding for tobacco prevention and cessation is through the implementation of a cost recovery fee on tobacco companies — a model already used in other jurisdictions. 

A cost recovery fee ensures that those who profit from the sale of harmful tobacco products also bear the cost of mitigating the health and social harms they create. It enables governments to fund cessation programs, public education, enforcement, and youth protection strategies — without relying on unpredictable windfalls or tax dollars. 

The tobacco industry should be held accountable not only for past harm, but for the ongoing burden it places on our health care system and communities. Reinvesting settlement funds into tobacco control initiatives is not just the right thing to do — it's the smart thing to do. Every dollar spent on prevention and cessation returns multiple dollars in avoided health care costs and improved productivity.  Moreover, failing to invest in proven strategies risks reversing decades of progress. Young people are still being targeted by the tobacco and vaping industries. Marginalized communities still face disproportionate harms. And far too many people who smoke and want to quit still lack access to the resources they need. In fact, Saskatchewan still has one of the highest rates of tobacco use in Canada. 

Lung Saskatchewan is calling on the provincial government to allocate a small but meaningful portion of the tobacco settlement – less than 5% of Saskatchewan’s total settlement amount – toward tobacco cessation, protection, and prevention. We urge citizens, health professionals, educators, and community leaders to speak out. Write a letter to your MLA today. 

These funds were secured because of the health devastation caused by the tobacco industry. They should be used to prevent future devastation, not just plug fiscal holes. 

The lives of our citizens depend on it. 

Erin Kuan, President & CEO, Lung Saskatchewan

This article was published in the Regina Leader Post and Saskatoon Star Phoenix on September 3, 2025.