Minister of Finance Brenda Bailey tables her first budget in the legislative assembly at legislature in Victoria, B.C., on Tuesday, March 4, 2025. THE CANADIAN PRESS/Chad Hipolito

By The Canadian Press

B.C.’s $3.5-billion tobacco settlement recorded incorrectly, says auditor general

Oct 28, 2025 | 1:25 PM

VICTORIA — British Columbia’s auditor general says the province’s multi-billion-dollar settlement with tobacco companies should have been recorded in last year’s books, instead of being spread out over this year’s and future financial statements.

A report from acting auditor general Sheila Dodds says the government’s way of noting the $3.5-billion deal will result in an overstatement of revenue in those years.

The province will receive the court-approved compensation from multiple tobacco companies over the next 20 years, recovering a portion of smoking-related health-care costs.

Finance Minister Brenda Bailey’s financial update last month showed $2.7 billion of the settlement as revenue this fiscal year, when the province reported a record deficit of almost $11.6 billion.

Ministry staff told reporters during a technical briefing that adding the money as revenue this fiscal year represented standard accounting practice.

CFJC-TV

Kamloops born-and-raised Dylana Kneeshaw to succeed Bill O'Donovan as CFJC-TV lead anchor

9h ago

TWO & OUT

PETERS: Boyle's supportive housing move is data-driven decision-making gone wrong

14h ago

Looped In

LOOPED IN WITH NIKKI OMEN: December 11, 2025

Dec 11, 2025

Bailey told reporters that counting the settlement money now, while it is still coming in, was a staff decision, and not made around the cabinet table, but opposition critics have said the move was being used to hide the size of the deficit.

This report by The Canadian Press was first published Oct. 28, 2025.

The Canadian Press