2004 Annual Report

SELECTED SOCIO-ECONOMIC EFFECTS OF ORGANIZED CRIME IN CANADA
Methamphetamine
The amount of methamphetamine manufactured and trafficked in Canada is
increasing. Organized crime groups are involved in the illegal importation of
precursor chemicals needed to manufacture methamphetamine, financing and
manufacture of the drug in clandestine laboratories, as well as its distribution.
Depending on future demand for methamphetamine within Canada and in the
U.S. there may be a conflict between criminal groups involved in manufacturing
and/or trafficking methamphetamine.
Methamphetamine is highly addictive and physically destructive to users.
The drug can make users very aggressive, often resulting in violent behaviour.
Although easily manufactured, the chemicals during production are highly
toxic, corrosive and combustible. The drug can be produced in small amounts
in kitchens or garages and large amounts in self-contained “laboratories.”
Clandestine laboratory fires and explosions have occurred, causing serious
public safety concerns. Chemical vapours from the manufacturing process can
cause injury and death, as well as permeate the walls and carpets of buildings,
making them uninhabitable. Additionally, discarded toxic chemicals can cause
environmental damage and pose a threat to public health and safety. As a
result, residences or businesses located near either the manufacturing or
dumping sites can decline in property value.
Contraband
A contraband market that illegally distributes a legal commodity, such as
tobacco, often exists due to some degree of societal acceptance. However,
these markets can significantly affect society, particularly through the loss of
potential tax revenue that could be directed toward health and social
programs. The business community is also affected as businesses that operate
honestly are at a serious disadvantage in relation to those who sell contraband
products at significantly lower prices. There are potentially major health
concerns over the content and quality of contraband products, such as illicit
alcohol, as serious health problems or death could result from its consumption.
Illicit markets often target vulnerable groups, such as youth, as consumers
for these products. Organized contraband activities can significantly affect
communities, particularly smaller communities. For example, the involvement
of criminal groups in contraband smuggling on Aboriginal reserves in southern
Ontario and Quebec creates tensions within these communities and between
governments, Aboriginal communities and surrounding non-Aboriginal
communities. Organized criminals can exploit the tight kinship networks in
small communities, often dividing families that both benefit from and are
adversely affected by the criminality.
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