Yukon, Nunavut support proposed deal for national payout from tobacco companies

Both the Yukon and Nunavut say they support a proposed deal that would see tobacco companies pay out billions of dollars to health care systems across the country.

On Thursday, three tobacco companies filed a plan in Ontario court that would see $25 billion paid out to provinces and territories, and an additional $4 billion to Quebec residents that are part of decades-long legal battle.

A statement attributed to Tracy-Ann McPhee, Yukon's minister of health, said the territory would receive about $100 million as part of the deal, "most of it paid in the first five years."

"These funds would be used to provide meaningful benefits for our hospitals and health care services and continue the work being done to reduce the number of Canadians who smoke," reads the statement.

She added that the proposed deal"provides financial compensation to health systems that have been paying the health care costs of treating smoking-related diseases and continue to do so."

John Main, Nunavut's health minister, also issued a statement on the plan.

"As Nunavummiut, we understand the profound impact smoking has on our health," he said. "I am proud that our territory is part of this collective effort to seek justice and better health outcomes for our communities."

Under the proposed plan, Nunavut would receive $95 million, according to Main.

He said those funds "are critical for improving treatment and care in our territory."

Historically, the territories have reported the highest smoking rates in the country.

The deal comes after the three tobacco companies JTI-Macdonald Corp., Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd. went into creditor protection after losing a court case in Qubec.

The proposed deal still needs to be accepted by the companies' creditor and approved by the court.