How the proposed deal between provinces, smokers and tobacco companies would work [Video]

A plan for Canada’s three biggest tobacco companies to pay out $32.5 billion to provinces, territories and smokers is now in the works, but some hurdles remain before any money starts flowing.

Here are some key facts about the tobacco compensation deal, as explained Friday by lawyers and officials representing the companies, the provinces and smoking-cessation advocates.

How would compensation payments break down?

If approved, the deal will see the three firms — Imperial Tobacco Canada Ltd., JTI-Macdonald Corp. and Rothmans, Benson & Hedges — pay the following:

$24.7 billion to the provinces and territories, with $12.5 billion of that paid up front, as soon as early 2025, and the remainder over the five years that follow, in annual instalments.

$6.6 billion to individuals who experienced defined smoking-related diseases, or their survivors.

$1 billion to a new national foundation for research into cancer and other smoking-related diseases.