The Rideau River Residence Association (RRRA) released a statement Nov. 19 that claims it will lose $20,000 in profits when new anti-smoking legislation that prohibits the sale of cigarettes on campuses comes into effect.
RRRA sells tobacco products in its Residence Commons variety store Abstentions. According to its 2013-14 budget, RRRA plans to make $102,500 in revenue from cigarette sales from September 2013 to April 2014, while costs amount to $95,000 for the same period—a profit of $7,500.
RRRA purchases cigarettes based on demand, according to Will Verschuren, president and chief financial officer of RRRA, and this projected loss includes the loss of profits for cigarettes already purchased.
“This kind of loss seriously impacts future programming” for RRRA, the release said, adding that the association is working to find alternative funding.
Verschuren said they began planning for the loss in profits when the legislation began receiving attention.
“We were notified earlier this month. When the legislation began to get media attention, that’s when we found out, and we’ve been attempting to compensate ever since,” Verschuren said.
RRRA has met with MPP Yasir Naqvi in order to secure “transitional funding” as they adjust to the change in profits.
“When other sectors of the economy have been hit by tobacco restrictions they also receive transitional funding, so this shouldn’t be an issue,” he said.
According to Verschuren, no RRRA programming will be impacted at this time.
The provincial government has not yet committed to providing transitional funding.
RRRA is one of the few student associations in Ontario that still sells cigarettes, and Verschuren said this is because they never faced pressure to stop.
“There was a demand for them, we could have stopped selling like other student associations, but students would go elsewhere anyways,” he said. “There was never a huge call towards us to stop.”
The legislation prohibiting the sale of cigarettes comes into effect on Jan. 1 on post-secondary campuses across Ontario.
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