Minister of Health and Social Services, Lesa Semmler, issued the following statement today regarding the court approved plan for tobacco compensation:

"Today, I am pleased to announce a resolution in our efforts to recover money for our health care system from the tobacco companies that sold cigarettes in Canada. The Chief Justice of the Superior Court of Ontario has approved a plan that represents the largest resolution of its kind in Canadian history and the third largest ever globally.

"This litigation addressed the alleged deceptive practices of tobacco companies from the 1950s to the 1980s. These practices led to significant health care costs, and our goal was to recover those costs. The legal process began more than two decades ago, and the mediation that led to this resolution has taken five years.

"Under the approved plan, the tobacco companies will be required to pay a total of $32.5 billion.

“The Northwest Territories anticipates receiving a total of approximately $185 million under this compensation plan, with an initial payment of around $44 million. The remaining balance will be paid out over 18 years and is contingent upon future revenues.”

“Efforts in the NWT to reduce smoking rates include education campaigns on the dangers of smoking, increased taxation, restrictions on smoking locations, advertising bans, and clear product labeling about health risks. Smoking rates in the Northwest Territories have declined significantly from 46% in 2002 to 28% in 2023, and our goal remains to bring that number to zero.

"We look forward to utilizing funds to support preventative care and enhance the efficiency of our health care system in ways that directly benefit the people of the Northwest Territories."

Media Requests, please contact:

Cabinet Communications
Government of the Northwest Territories
PressSecretary@gov.nt.ca