Once the bill is proclaimed, the province would have two years to file a lawsuit. (CBC)

The P.E.I. government introduced a bill Thursday that would allow the province to sue tobacco companies for health-care costs related to the use of their products.

Attorney General Gerard Greenan said the province could recoup millions of dollars in health care expenses for cancer and other smoking-related illnesses.

Normally, the province wouldn't be allowed to recover costs that occurred more than six years ago.

But with the new legislation there would be no time limit on how far back damages could be claimed.

The government had pledged to introduce the legislation in its throne speech earlier this month.

But the bill won't be proclaimed until the province decides whether to proceed with legal action against tobacco manufacturers and promoters, Greenan said. Once it is proclaimed, the province would have two years to file a lawsuit.

Modelled after B.C.

The bill is modelled after legislation in British Columbia, which was passed nearly 10 years ago and upheld under a challenge in the Supreme Court of Canada.

It says exposure to tobacco can cause and contribute to disease and that the province is taking legal action to recover the costs of providing those health-care benefits.

British Columbia, New Brunswick and Ontario have already launched lawsuits against tobacco manufacturers.

Premier Robert Ghiz suggested earlier this year that P.E.I. is too small to launch a suit on its own, but might team up with New Brunswick.