Bill C-311 (Historical)

An Act to amend the Importation of Intoxicating Liquors Act (interprovincial importation of wine for personal use)

This enactment amends the Importation of Intoxicating Liquors Act to add an exception allowing individuals to import wine for their personal use to the provision that requires that all imports of intoxicating liquor be made by the province.

Importation of Intoxicating Liquors Act

[The Deputy Speaker, NDP, Denise Savoie]

Order. The hon. member will have approximately four minutes when the bill returns on the agenda.

The time provided for the consideration of private members' business has now expired, and the order is dropped to the bottom of the order of precedence on the order paper.

The House resumed from October 20 consideration of the motion that Bill C-311, An Act to amend the Importation of Intoxicating Liquors Act (interprovincial importation of wine for personal use), be read the second time and referred to a committee.

[The Acting Speaker, Conservative, Bruce Stanton]

When the question was last before the House, the hon. member for Kitchener—Waterloo had four and a half minutes remaining in his speech.

The hon. member for Kitchener—Waterloo.

[Peter Braid, Conservative, Kitchener—Waterloo, ON]

Mr. Speaker, I am very pleased to have the opportunity to continue to speak to Bill C-311, brought forward by my colleague from the riding of Okanagan—Coquihalla who is doing great work serving his constituents.

The amendment contained in Bill C-311 is clearly long overdue. There are also clear advantages to adopting it. For example, this progressive amendment to the legislation would reduce red tape by lowering the regulatory burden on the wine industry. This is a priority for our government. We are determined to help businesses and entrepreneurs succeed, keeping taxes low, investing in projects of national importance, and maintaining Canada's brand as one of the best places in the world to invest.

Consistent with our government's commitments, this long-awaited reform would reduce barriers to internal trade. This anachronistic aspect of the Importation of Intoxicating Liquors Act is out of step with global trends to liberalize internal trade. Once adopted, this amendment would remove an irritating federal obstacle to trade.

Bill C-311 sends a strong signal that Ottawa is getting out of the way on an issue that is squarely within provincial jurisdiction. The federal government does not have the authority or means to stop the interprovincial movement of goods at provincial borders. The IILA merely serves as an umbrella under which the provinces and territories exercise their authority to control the importation of wine products into their jurisdictions.

Provincial and territorial governments administer a system of licences and permits to distribute, transport, detail and use alcohol products. They would be free to develop or amend their own legislation, should they so choose, to enhance or expand the interprovincial trade in wine. For instance, some provinces and territories designate communities as being dry or impose community-controlled restrictions on the purchase of alcohol. Nothing in Bill C-311 precludes them from continuing to do so.

Most crucial, this legislation would respond to the needs of the business community in an industry currently being held back from achieving its full potential. Individual wineries, most particularly those in British Columbia and in my home province of Ontario, along with the Canadian Vintners Association, have repeatedly requested permission for more liberalized domestic access to their products. As one example, according to local media reports, Vineland Estates in Ontario receives at least 100 requests for its products from consumers in other provinces every month, a need it is currently unable to satisfy because to do so is illegal. Being free to sell wine directly to consumers would enable Canada's winemakers to expand their operations and create jobs in local communities. Bill C-311 takes us closer to making this happen.

Canadians have been calling for an exemption to the IILA to remove the federal obstacle for individuals to purchase wine directly from wineries anywhere in Canada for their personal consumption. They should be able to buy a favourite wine made in a neighbouring province without worrying about breaking the law. These calls have the backing of numerous municipal and provincial chambers of commerce in wine producing regions across the country as well as the Canadian Chamber of Commerce because they know the impact this could have on jobs and economic growth. Members of the opposition have also endorsed these necessary amendments, no doubt because their own constituents are also telling them it is time to act.

In an era when it is possible to buy products from just about anywhere on the planet, via the Internet, and have them shipped in a matter of days to people's homes, it is almost unbelievable that Canadian consumers are currently contravening federal laws if they attempt to purchase wine from their favourite out of province winery. We can take an important step toward putting an end to this restrictive practice by voting today to adopt the amendment contained in Bill C-311.

I strongly encourage—

[The Deputy Speaker, NDP, Denise Savoie]

Order. Resuming debate. The hon. member for British Columbia Southern Interior.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Madam Speaker, I am pleased to speak today in support of Bill C-311, An Act to amend the Importation of Intoxicating Liquors Act (interprovincial importation of wine for personal use).

Over the past years, as our former agriculture critic, I have been working with the Canadian Vintners Association, CVA, on behalf of wineries in my riding and right across the country to get some movement on this important issue.

At the request of local vineyards and the CVA, I have written a number of letters to the Minister of Agriculture and Agri-Food on this issue. For example, on September 21, 2010, I wrote the following letter to the minister:

Please find attached copies of letters that I have received from Mr. Tim Martiniuk, General Manager of Stoneboat Vineyards in Oliver, BC and Mr. Dan Pazkowski, President of the Canadian Vintners Association. These letters outline the need to modify the Importation of Intoxicating Liquors Act (IILA) to allow Canadian consumers more flexibility when purchasing wine at local wineries.

I concluded my letter by saying:

On behalf of our BC wineries I would like to thank you for the efforts you have already undertaken with the Provinces to improve the accessibility of our excellent wine among Canadians. I encourage you to explore other federal options that will facilitate a workable solution. Please be assured that you can count on my support on any initiatives that will advance this issue.

Yesterday I met with Mr. Pazkowski, as well as with Mr. Luke Harford, vice-president of the CVA, on another important matter that concerns our Canadian wine industry, that of the 21.2% excise duty that is paid on all wines sold in Canada that do not come under the VQA or Canadian-grown label. What this means is that Canadian blended wine producers pay an extra 10.78¢ per litre of excise duty which is hurting their industry. I will be following up with the minister on this issue.

As a result of yesterday's meeting, Mr. Pazkowski, at my request, has sent me the Canadian Vintners Association talking points on Bill C-311, hot off the press, which I would like to share with the House in the time remaining.

The first question that is often asked is:

Why is this important to Canadian producers?

According to the association, and I agree, this change would:

Facilitate better choice for Canadian consumers so that more Canadians can enjoy the full range of great Canadian wines.

Ensure that Canadians who have visited wine producing areas and tasted the products can continue to get the products they have enjoyed as tourists if the wine is not available at local liquor boards.

Help Canadian producers increase their market share at a time when imported wine products are increasing their portion of the market and dominating liquor board listings.

Will this undermine the current system of provincial liquor authorities?

A personal exemption is NOT intended to undermine or destroy the current system of liquor boards. Despite the best of intentions and the support of liquor boards in producing jurisdictions for the Canadian wine industry, liquor boards are not able to carry the full range of Canadian wines, due to supply requirements, space restrictions, etc.

Allowing a limited amount of 100% Canadian wines to be supplied directly to Canadian consumers from wine producers or to transport wine across provincial borders would represent a very small percentage of total wine sales. A personal exemption of 12-24 cases per year per adult consumer is not going to undermine the liquor board system.

For small wineries, these sales could represent an important revenue and profit stream they would not otherwise receive. The products likely to be traded are small volume but higher value wines which are not available in liquor boards and are of interest to premium wine consumers. Higher profits by wineries are shared with governments in the form of higher taxes.

Who would participate in an electronic direct delivery of wine across provincial borders if a personal exemption was put into place?

Such a system would respond to the desires of a “select group” of wine connoisseurs/consumers who want variety, quality and regional wines. This select consumer group has a shopping strategy and is willing to:

pay the transportation fee

order a set minimum quantity (e.g., 6-12 bottles)

order more expensive wines at a price point of at least $15 per bottle

consider both online and retail purchases

Yet another question that is often asked is:

How much 100% Canadian wines would be sold under such a system?

It is difficult to accurately measure the volume of wine sales from wineries that would be sold to tourists and wine enthusiasts. We anticipate that Canadian tourists are currently purchasing wine while on vacation at wineries and transporting this wine across provincial boundaries, without knowing they are violating the IILA.

US data shows that Direct Sales represents approximately 2% of total production in the US, of which approximately 1% is DCT shipments (tasting room delivery, internet, phone, wine club).

Based on the US model, approximately 1% of total 100% Canadian wine sales would take advantage of direct sales which could represent approximately 27,500 cases per year and would be drawn from wines that are not available at a local liquor stores via tasting room deliveries, internet, phone or winery wine club purchases.

This would also stimulate greater interest in retail sales at both wineries and liquor boards, resulting in greater market access across Canada and greater tax revenues and sales for both wineries and liquor boards.

The next question that is asked is:

Do Liquor Boards have a Meaningful Minimum Personal Exemption

According to the Vintners Association:

Liquor Boards have steadfastly opposed any amendments to the IILA to facilitate interprovincial trade in Canadian wine, even though total 100% Canadian wine sales across Canada represent a mere 6% of total wine sales.

With growing consumer pressure, liquor boards have further attempted to circumvent proposed amendments to the IILA by recently introducing small volume personal exemption limits.

For example, in Ontario the LCBO Board of Directors recently adopted a policy permitting Ontario residents of legal drinking age to transport 9 Litres of wine (equivalent to one case of 12 bottles) on their person from another Canadian province or territories, as long as it is for personal consumption. Other provinces have lower personal exemption limits [for example] Newfoundland (1.14 Litres) and PEI (2 litres) etc.

The Vintners Association would like to make two important points:

(1) Provincial personal exemptions are restricted to wine transported on your person, and do not permit the use of winery wine clubs, internet, phone, etc. This restricts the use of modern technology and limits the opportunity for Canadian consumers to access wines unless they travel to BC, Nova Scotia [or other provinces] which does not happen often in a country the size of Canada. Alternatively, you have the option to use the slow and expensive liquor board private order program.

(2) Provincial personal exemptions (e.g., the LCBO policy) are technically illegal since it contravenes IILA Section 3(1) that all alcohol entering a province be purchased by or on behalf of the Crown and Section (5) that anyone who contravenes the IILA is liable to penalties on summary conviction.

To ensure that liquor boards treat the issue seriously, it is important that Bill C-311 include a reasonable quantity. Industry fears that leaving the quantity to the provinces will provide limited benefits to Canadian consumers and would fail to address the spirit of Bill C-311.

I will continue with another question that is posed in this document, which is:

Are Provincial Private Order Programs effective?

The answer is:

Many liquor boards have introduced private ordering programs for wines that are not available at their provincial stores. This system requires consumers to request that liquor boards facilitate their communication with wineries, pay a premium for this service, and wait as much as 12 times longer for receipt.

In conclusion, I think Bill C-311 is a reasonable compromise. I would like to thank my colleague from Okanagan—Coquihalla for introducing this bill.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Madam Speaker, I am pleased to be part of the debate on this private member's bill, Bill C-311.

I wish to congratulate my colleague from Okanagan—Coquihalla, a riding in the beautiful province of British Columbia, on this very sensible bill. I am pleased that all the parties in the House seem to agree that it is a good thing to do.

I also want to congratulate my colleague from Kings—Hants for being the seconder of this bill and having spoken on behalf of the Liberal Party in support of it.

I represent a riding in British Columbia that has a large wine industry.

The wine industry is of growing importance in my province.

We have heard from members who have spoken to this bill that the current law makes no sense. We are dealing with a law that dates from 1928, the Importation of Intoxicating Liquors Act, which was passed more than 80 years ago. This law was brought into force following the lifting of prohibition on alcohol. Some of the elements of the law at that time were overly restrictive because there was no clarity as to how the use and sale of alcohol would proceed following the period of prohibition.

What happens under that law established 80 years ago is that people visiting a vineyard in the province of British Columbia who come from another province in Canada would be able to taste wine, buy a bottle or two and consume it in B.C. However, they would not be able to take any home or order any to have sent home. This makes no sense from many perspectives, one of which is the trade barrier that it implies.

We are one nation. We are a united nation. We are a nation of Canadians who are united in many ways. One way to unify us is to reduce barriers to trade, to increase the prosperity of small businesses and their workforces. When there is a trade barrier that does nothing to protect people, it is important that we look at those laws, update them and change them. That is exactly what Bill C-311 is all about. It is time to change that law.

The changes proposed are widely supported. I know some of my colleagues have been speaking about that. It is a change that is supported by Canadian consumers who enjoy agri-tourism, visiting vineyards and going on wine tours. For example, the circle tours which have been developed in British Columbia are an important tourist product. People from other countries and provinces are invited. Some drive through the interior of British Columbia, one of the most spectacular parts of Canada, and through the Okanagan. They stop at wineries, enjoy high-quality meals, see the magnificent art on the walls, go on tours to see how wine is made and enjoy the products. It makes no sense whatsoever that if tourists visiting a winery come from south of the border, for example, they are able to have wine shipped to them, but if they come from Alberta, Nova Scotia or Quebec, they are not able to do that without breaking the law.

The law is actually quite strict. There is a $200 maximum penalty for a first offence. For a second offence, the penalty is between $200 and $1,000 or imprisonment of three to six months for the default of payment. I know some in the House might think that more and longer prison sentences are a good thing, but we all agree that for bringing wine from one province to another, it is completely ridiculous. This penalty actually goes up to between 6 and 12 months for each offence after the second offence. This a very out-of-date law.

Some concerns have been raised about the provinces' responsibilities in that regard. Will the federal government be acting in an area of provincial jurisdiction? I would like to say that that is not the case will Bill C-311, because it allows the provinces to set their own limits regarding the quantity of alcohol and bottles of wine that can be transported between provinces. This means that if a province does not want to import any wine and wants to stop all such imports, it can set the maximum amount at zero. Thus, the quantity or existence of this interprovincial exchange remains in the hands of the provinces.

Who is for this? It is very strongly supported by the vintners, of course, as well as the business community and even the provinces. I note that the solicitor general of British Columbia was publicly considering taking steps to reduce the effects of this antiquated law that made it an offence to take wine across a provincial boundary.

According to the vintners, the proposed amendments are widely supported by the Canadian wine industry. They are pleased to be able to facilitate consumer choice in wine. It is good for small business, for tourism and for people who love to sample wine from other parts of the country and bring it back to share with their families, friends and neighbours.

Having recently been on an economic tour of the interior of British Columbia, I noted that some of the rural communities that were struggling to develop their economies after a downturn in their logging industry. The local provision of jobs through logging are turning to agri-tourism. The vineyards and wineries are a high quality example of agri-tourism in British Columbia. In fact, our wineries are among the best in the world. We have a solid reputation for award winning wines. We want people to not only come and travel throughout British Columbia and bring their tourist dollars and leave them with the small businesses, the hotels, the restaurants and wineries, but we want them to be able to take some of that product home with them, or order that product.

Small and medium-sized businesses are the bulk of the wine industry. Almost all of Canada's wineries are small businesses. This is a very important part of rural economy and it is growing. The number of Canadian grape wineries has increased by roughly 300% to more than 400 wineries. British Columbia, of course, is one of Canada's wine centres and gives the other provinces a run for their money in terms of awards and recognition.

These are small businesses and our small and medium-sized business sector in Canada is incredibly important in terms of job creation, innovation and recycling money in the Canadian economy. Small and medium-sized enterprises employ two-thirds of the private sector workforce, overall. The wineries are an important segment of this.

In British Columbia, the B.C. wineries are happy to see this bill brought forward, so are wine lovers across Canada who can continue to appreciate and share with their friends the bounty that our vineyards produce.

[Cathy McLeod, Conservative, Parliamentary Secretary to the Minister of National Revenue]

Madam Speaker, I would like to take a moment to congratulate my colleague from Okanagan—Coquihalla for his excellent work on this legislation. He has certainly been a strong advocate for his riding and the many excellent wineries and vineyards of which his constituents are so proud.

I would also like to take time to acknowledge the contributions and the hard work of the member for Kelowna—Lake Country, whose efforts have been essential to the strong progress of the bill.

As other speakers have already noted, there are many compelling reasons to support my hon. colleague's private member's bill.

I would first like to start with a short story. I am a member from British Columbia. My parents lived in Ontario and they would come out for a visit every summer. As part of their treat, and part of what they did during the summer, they explored some of the wonderful wineries around our province. We found a sparkling wine that was of particular joy to our palates. For many years during their visits, this wine helped us celebrate births, different activities and celebrations. When they were in British Columbia, we always enjoyed this sparkling white wine.

I thought it would be nice to have this sparkling white wine when it came time to celebrate their 50th anniversary in Ontario. I did not know at the time about the Importation of Intoxicating Liquors Act. It turned out to be an absolutely impossible task to provide the sparkling white wine for this festive event. I was quite surprised to learn that.

Why was that such a challenge? It really goes back to the Importation of Intoxicating Liquors Act that dates back to the days of the temperance movement.

Unfortunately, the outdated provisions of the IILA have serious consequences for Canadian consumers and businesses. We are lagging behind our major trading partners on this important issue. The United States struck down barriers to direct consumer sales back in 2005. As long as certain provisions of the IILA stay in place, Canadian consumers will remain at a distinct disadvantage by not having access to wines from across Canada. Furthermore, this legislation intrudes into areas of provincial responsibility, an area where this government has no desire to be and does not belong. Our preference is simply to get out of the way and let the provinces go about their business in areas of their jurisdiction.

That is why the amendment only deals with the federal aspects of the prohibition-era law, which restricts the movement of wine across provincial boundaries.

Bill C-311 would ensure that provinces would maintain the ability to set policy regarding provincial exemptions on wine importation. They would be free to enhance or expand the interprovincial trade in wine as they saw fit.

There are also practical considerations related to this bill. For instance, although the IILA provides penalties for non-compliance, the law is challenging for the federal government to enforce. The proposed changes will make the IILA more relevant to the current travel practices of Canadians and will remove an unenforced section of law.

More to the point, our government's goal is to reduce, not create or maintain, barriers to provincial trade. We are working closely with our provincial and territorial counterparts to advance this goal.

However, the bill is not solely about governments' rights and responsibilities. It is fundamentally about giving consumers greater choice.

Currently, Canadians do not have easy access to made in Canada wines, which are internationally recognized as being the best in the world. Even though Canadian wines win awards around the globe, they are often not available outside the provinces in which they are produced. Liquor boards have limited space shelf and have tried to expand choice through private order programs, but they can be slow and costly. As in the case I was relaying earlier, it was just so cumbersome and burdensome that it was not worth the time and effort.

These costs are also a deterrent to the wine industry, especially small and medium-sized businesses trying to get a foothold in the marketplace. The wine industry is growing all across Canada beyond the well-known locations such as British Columbia and Ontario. Nova Scotia, Quebec, New Brunswick and Prince Edward Island are all involved in the wine-making business as they diversify their economies. These fledgling firms need our support, not government interference. Of all the arguments in favour of Bill C-311, few matter more to business people than the potential economic spinoffs of this legislation. This is particularly true in British Columbia, one of the most important wine regions in Canada.

To appreciate the importance of the sector to the provincial economy, let me provide a broad overview of the industry and members will see how much is at stake.

The wine industry in British Columbia is one of the fastest growing agri-food sectors. In 1988, B.C. was home to just 14 wineries. Today it boasts almost 200 wineries, 710 vineyards, producing 60 different varieties of grapes.

Or put another way, British Columbia now has 9,100 acres under vine, up from just 1,000 acres planted in 1989. People will find crops in all five wine growing regions of the province including the Okanagan, Similkameen and Fraser Valley as well as Vancouver Island and the Gulf Islands. In fact, I am proud to say that the wine industry is also of growing importance in my riding of Kamloops—Thompson—Cariboo.

Tourism across the province greatly benefits from the promotion of B.C.'s wine sector and it provides added value to visitors from around the world. Events such as Sun Peaks winter wine festival serve to cross promote our excellent regional wine as well as other attractions available in the region.

To translate these numbers into production volumes, one-third of Canada's grapes are grown in the province. The value of these crops is $40 million annually.

Let us extrapolate those to jobs in the province. The swelling ranks of people employed in both growing and harvesting the crops, hosting festivals and visitors and other related industries is extensive. Everything from festival planning to wine barrel production revolve around B.C. wineries.

Along with the growth in the sector has come exceptional skill. In 2010, B.C.'s maturing wine industry won over 1,600 medals in competitions around the globe. The province is especially recognized for its outstanding dessert wines.

This success is attracting global attention. According to Sotheby's International Realty Canada, people are coming from all over the world to see B.C.'s wine success story for themselves. It cites the examples of the Okanagan Valley, which is increasingly attracting international visits to its growing wine tourism region as well as its spectacular lake and scenery. It is worth noting that the Okanagan Valley has been named a Frommer's Top Travel Destination, a prestigious global ranking.

In addition to boutique wineries, tours and festivals, upscale restaurants, championship golf courses and luxury hotels, all cater to wine tourists. Many of these individuals fall in love with the idea of having their own vineyard. As a reflection of this interest, Sotheby's has created a distinct Vineyard Collection to market wine-related properties, drawing prospective buyers from as far afield as China, Italy and Germany.

A further spinoff of this interest and attention is a growing export market. Demand for high quality B.C. wines internationally has led to a nearly 300% increase in exports to Asia since 2008. Similarly, Canadians are free to purchase imported wines from other countries. How ironic that we cannot have access to these quality products grown right in our own backyard.

Even if Canadians buy wines on site when visiting wineries in other provinces, they are not permitted by the IILA to bring those purchases back home with them. Yet they can bring foreign wines through the border when they travel outside the country.

Consumers of domestic wines should not be shortchanged by the outdated Importation of Intoxicating Liquors Act, a problem that this private member's bill will finally address. For the first time in nearly a century, it will be possible for wine producers to sell their products openly and freely into other provinces in keeping with provincial laws. Unlike the 1920s, they have access to modern technologies like the Internet that make such sales simple and cost-effective. At the click of a mouse, even the most discerning wine palate could be satisfied with an award winning wine produced by Canadian vintners.

I call on all members to lend their support to this worthy and long overdue legislative change. Canada's wine makers are counting on it.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Madam Speaker, I too am very pleased to rise in this House and add my support to Bill C-311.

When the member for Brossard—La Prairie rose to speak on behalf of the New Democrats to kick off this debate, he indicated that we were supportive of the legislation and that we would be pleased to discuss it at committee and perhaps enhance the bill to make it even better for the wineries in Canada.

We are talking about Bill C-311, An Act to amend the Importation of Intoxicating Liquors Act (interprovincial importation of wine for personal use). The proposal is to amend the Importation of Intoxicating Liquors Act by providing a new exemption to the prohibition on the interprovincial importation of intoxicating liquors. This would allow the importation of wine from one province to another by individuals who bring wine or cause wine to be brought into another province for personal consumption. We are talking about a minor change to the legislation, but an important change.

Many other members have very ably outlined some of the technical aspects of the bill, but I want to take this conversation down to the local level to talk about why wine importation is so important in our individual communities.

In my riding of Nanaimo—Cowichan, I am very blessed to live in a rich agricultural area. We have many wineries in the Cowichan Valley. I want to talk about a recent festival because it highlights the rich diversity of Nanaimo—Cowichan. Many other members share this kind of riding, but I think it is important to highlight what this means to our local wineries, restaurants and farmers.

We just had a Cowichan wine culinary festival. The festival ran from Wednesday, September 14, to Sunday, September 18. When the invitation was sent out, all wine and culinary aficionados were invited to our wineries, farms and restaurants. The invitation talked about the range and variety of activities that would happen in the Cowichan Valley:

“Our community has rallied around our vintners, farmers, food producers and chefs who have created tasting or tour activities and events showcasing the best of Cowichan,” commented Mike Hanson, Festival Director, 2011 Cowichan Wine & Culinary Festival. “Together we are offering a truly memorable cultural destination experience”.

That is an important aspect of this. We are not just talking about growing grapes, but about making wine and incorporating it into a total experience. Of course, the Cowichan Valley is becoming quite well known for its winery tours, which incorporate visits to some of the restaurants.

The festival also offered an assortment of the region's best wines and ciders, tours and tastings, unique farm-fresh epicurean delights from organic farmers and food producers, live entertainment, green earth seminars, hand-blown glassware and your favourite bottles of wine over lunch.

Unfortunately, I was here in Ottawa during that period of time, so was not able to take part, but I know from speaking to people, despite the rain, that people came out in droves.

There was also an article on September 15 in the Times Colonist that said, “Duncan: an arbiter of good taste”. The columnist, Jack Knox, talked about the fact that we had the downtown Duncan grape stomp, which was literally where people gathered in downtown Duncan. There were a number of participants. The big barrels were set up, and people got in the barrels and stomped the grapes. The columnist suggested that perhaps this was a good anger management technique, but it really highlighted the kind of involvement that the Cowichan Valley has in supporting our local grape growers.

In the same article, the Times Colonist columnist pointed out that what has happened with Canadian wineries is that they are now focusing on quality, not necessarily price, and as other speakers have rightly pointed out, in British Columbia we have some very fine wineries that have taken awards all over the world. Over the past generation, the Cowichan Valley now has more than 20 wineries operating, and they are very fine wineries.

The columnist went on to say that because of their growth in wineries:

“With that came a degree of sophistication,” says Hilary Abbott, owner of Hilary's Cheese Co. in Cowichan Bay.

There is now also a site in Victoria, Madam Speaker, which I am sure you will be very interested in. It continued:

People who like well crafted wine like well crafted food. The Cowichan Valley really caught the Go Local bug, perhaps due to the growing conditions that have already made it a Vancouver Island breadbasket. Even Barber, the Canadian guru of fresh, good food, spent the last years of his life in this valley. “He liked to say this was the Provence of Canada,” says Abbott.

Cowichan Bay was a great example of the change. Languishing a bit in the 1990s, it saw a rebirth with the arrival of True Grain Bread, the nucleus around which other boutique food shops grew. “As a cheese company, we hitchhiked on their success,” Abbott says. The transition culminated in 2009 when Cowichan Bay became North America's first CittaSlow community, making it officially hip. “We like to think we're a culinary destination.”

For listeners who do not know what CittaSlow is, it is part of the whole international slow food movement that encourages us to slow down and enjoy our local food and the preparation of it. Little Cowichan Bay has become a leader in the CittaSlow movement in British Columbia.

People from British Columbia are very familiar with food expert Don Genova. In a blog he again talks about Cowichan Bay, but he expanded on the fact that we have Hilary's Cheese and True Grain bakeries. He also talked about the Cowichan Bay Seafood and Udder Guy's Ice Cream, which makes wonderful natural ice cream. People can tour down through Cowichan Bay and have our fine wines and fine local foods. It is the kind of rich diversity that this kind of grape growing has added to our community.

It is very important to bring that kind of reality to this kind of technical piece of legislation that we are talking about right now. In March a well-known B.C. broadcaster, Terry David Mulligan, publicly lugged 12 bottles from B.C., Washington State and Ontario, as well as some B.C. beer, across the Alberta boundary to draw attention to what he says was an antiquated law. The host of the Tasting Room Radio show was ignored by B.C.

Further on in this article, one of my colleagues was quoted as saying, “...changes to the law are supported by B.C. wineries, who say they want to be able to grow their business by allowing residents other than British Columbians to directly buy from them, and by members of a national vintners group”.

I certainly am hearing some widespread support from our local wineries for this piece of legislation and I know many people in this House would benefit if I were able to bring a bottle of wine here to Ottawa and share it with my colleagues. They would be able to understand the fine wines that we produce in the Cowichan Valley. I am sure they would be ordering them online as quickly as they could.

In his speech, the member for Brossard—La Prairie quoted some stakeholders who were in support of the piece of legislation but who also raised some cautions around it. As responsible lawmakers, it is always important that we consider a bill and review the potential impacts. However, in one quote he made in a pre-budget submission, he said:

It is not possible to determine the impact of Bill C-311 on stakeholders, such as wine producers and provincial/territorial governments, in part due to differences among the provincial and territorial liquor-related statutes and exemptions contained in those statutes. In addition, prohibitions regarding the interprovincial/interterritorial importation of wine are not enforced consistently in respect of consumers and wine producers. Wine producers are unable to ship orders directly to individuals across provincial/territorial borders; however, individuals who transport wine from one province/territory to another on their person are rarely charged with an offence.

This pre-budget submission cautions us that we need to take a look at what the different provincial rules and regulations are to ensure we are not having an unintended consequence. That is always a responsible action on our part.

The other piece that some people have raised is that when we are looking at this exemption, we should consider whether the wineries are producing their wines from grapes that are all grown in Canada. There have been some issues. Some wineries have indicated their wine was made in Canada when, in fact, the grapes are imported largely from the United States and then processed here in Canada. There have been some concerns raised about that. The member for British Columbia Southern Interior, in particular, has always spoken in favour of labelling laws so that Canadians know exactly what they are getting.

I think this is a very positive move forward. I look forward to members in this House and other Canadians being able to take advantage of the fine wines in the Cowichan Valley and I urge all members to support this bill.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, it is a pleasure to speak to Bill C-311 and support my colleague from Okanagan—Coquihalla and the other speakers throughout B.C. and across this nation who have already spoken to this bill, which is similar to Motion No. 601 that I introduced in November 2010 and that helped move this team effort to the stage that it is today. It is great that the spirit of Christmas is alive and well. The unity and camaraderie is great to see within the House of Commons. It is something that we can all embrace.

As was mentioned, we are a country of unity, a family, and this is something that has been identified as an archaic piece of legislation, the Importation of Intoxicating Liquor Act, which was initiated in 1928, post-prohibition. The federal government of the day thought it would be good to give the provinces the ability to control the distribution of wine, beer and spirits and receive a little of the tax revenue. It did not anticipate something called the Internet back then. Fast forward to 2011 and what we have is something that, as I mentioned, is an archaic piece of legislation.

We want to encourage Canadians to enjoy internationally award winning wines that are produced in all parts of this country. There are actually over 400 wineries now across the nation. Over 200 in British Columbia, many of them right in my riding of Kelowna—Lake Country, have received international awards. I had the opportunity to host the agriculture committee last year. It was quite interesting. Members tried to make me be the mule to illegally bring back some of this fine vintage that they could not find in the liquor stores here in Ontario, for example.

I applaud the initiatives some of the provinces have taken to date, some baby steps. The Ontario Liquor Board says that we can purchase from its private purchase program. The reality is that it often takes over a month or two to purchase that and at a significant markup.

Many of these wineries are boutique wineries, the mom and dads small operations that produce maybe 3,000 or 4,000 cases a year. That is not enough to supply the liquor board, so they are really captive in their own province. In order to expand their market share across Canada, we need to break down the interprovincial trade barriers. It is good for the economy. It is good for jobs. It is good for agriculture. It is good for tourism. It is a win-win for everybody.

I know there have been some concerns expressed by some of the provincial liquor boards of a loss of revenue.

I have had the opportunity to speak with the Canadian Vintners Association and consultants who have looked at this in the U.S. A number of states have analyzed this and now over 35 states have gone directly to the consumer with a minimal, they are saying 1% to 2%, loss in revenue for the liquor board. However, overall, the macro prospective, if we look at the agricultural support and at the tourism initiatives, is that it is a benefit all across the country.

I had to laugh when I was approached by Shirley-Ann George about a year and a half ago. I had met her on one of the trade committees that I had been working on for five and a half years. Our country is working on over 50 trade agreements internationally. She came to B.C. and visited one of the wineries in the Okanagan. When she came back to Ontario, she was very disappointed that she was not able to find her vintners quality assurance, VQA, that blend produced in the Okanagan. After she retired, she decided to take it upon herself to start an organization called Free My Grapes. The website is active. She has had all kinds of people contacting her saying, “What is this? This is ludicrous”.

The allowing of a personal exemption is something that we are encouraging the provinces to look at, whether it is 12 cases a year or something through a wine club or directly through vintners, something that is reasonable. We have been having discussions among all parties and we are basically in agreement here. We now have provincial parties across the country, even opposition parties, that have contacted me within the province of B.C. saying that they support this.

I think the time has come now to move forward, and bring this legislation into the 21st century. It will help, I think, demystify everything. As my hon. colleague from the Island just commented about Terry David Mulligan, I talked to him earlier today on how he had to host a tasting room show. I am not, by all means, a wine connoisseur, a sommelier. I just know a bad policy when I see one.

The fact is that this bill will take time to move through the process and many people do not understand that. We have democracy and we are working through the House. It will go through after Christmas, hopefully, and the committee will have 30 days to review the bill. It will come back to the House and then go the Senate. On May 8 Canadian vintners have their annual lobby day on the Hill. That is sort of the target date, we hope, when we can all raise our glasses and cheer the fact that we have broken this interprovincial trade barrier.

As we approach the Christmas season, I know people are engaged in festivities. I would ask that we all be responsible to one another, drink responsibly, and do not drink and drive. If people enjoy the beverages of Canada from coast to coast to coast, we can have a stronger community, a stronger agri-tourism sector and, most of all, support our small vintners by moving this bill by my colleague from Okanagan—Coquihalla through the House.

[Malcolm Allen, NDP, Welland, ON]

Madam Speaker, let me first thank the member for Okanagan—Coquihalla for bringing this bill forward. I would also like to thank the member for Kelowna—Lake Country, with whom I sat on the international trade committee in the last Parliament. We are in absolute agreement, except for one small discrepancy, which is that Niagara makes the best wine this country has seen.

Let me give credit to one of the vineyards. We will all hoist a glass with Niagara Grape if it gets a good VQA. It is actually 100% Niagara grapes, all grown in Niagara, and eventually put in a bottle.

Let me thank a gentleman by the name of Don Ziraldo. There was a time, unfortunately, in this country when the wine was not that good. Don Ziraldo said that it could be made better. He formed Inniskillin Wines many years ago with a partner and produced quality wines that eventually led to all of the small vintners who now make, with a vinifera grape quality, fabulous wines from coast to coast to coast. There are some now in Prince Edward County, Nova Scotia and the Okanagan Valley, which I had the great opportunity to visit last year and sampled wines up and down the valley.

I encourage folks to come to Niagara and the Welland riding. The Welland Canal is synonymous with the Welland riding. There are two fabulous wineries in my riding. Henry of Pelham and Hernder Estates are fabulous places to visit.

It is the right step to make. The bill will go to committee, where I am sure we can improve it and make it better. I would encourage folks to move this along because I want my friends to have wine made from Niagara grapes sent to the Okanagan Valley so people can have a great festive season next year.

[The Deputy Speaker, NDP, Denise Savoie]

I recognize the hon. member for Okanagan--Coquilla for the sponsor's right of reply.

[Dan Albas, Conservative, Okanagan—Coquihalla, BC]

Madam Speaker, I will begin by thanking the members of the House tonight for supporting Bill C-311. Many good questions have been asked and comments received. For me, it has been extremely heartening to hear from members from all sides of the House who also believe that having trade barriers within our own country because of an 80-year-old prohibition era law needs to come to an end.

When I set out to introduce the bill, it was out of concern for the many small family-run wineries in my riding and in the nearby ridings of Kelowna Lake Country and Southern Interior, wineries that are too small and cannot afford to sell to the large-scale liquor distribution monopolies.

I did not know then that Nova Scotia was an emerging wine region. I thank the member for Kings--Hants for his passionate and dedicated support for the wine producers of his region.

I also did not know that the province of Quebec is fast becoming a major wine producing province, with 5 wine producing regions and over 50 wineries.

I thank the member for Brossard—La Prairie for his support of this bill, and also the member for Saanich—Gulf Islands for speaking in support of this bill reminding us that there are great wines in her region of British Columbia as well. Of course, special thanks goes to all my colleagues in caucus, many of whom represent the great wine producing regions of Ontario and elsewhere in Nova Scotia and British Columbia.

Before I close, I will clarify a few points on my bill. I want to make it clear that my bill only proposes to remove a federal trade barrier that currently restricts a winery's ability to sell its wine directly to customers across Canada for non-commercial purposes. While the bill would remove the federal trade barrier, it also makes it very clear that it is ultimately up to the provincial governments to set personal exemption limits as they see fit. Already, some provinces have taken a lead on this, and I commend those provinces. However, other provinces have cited the IILA legislation as a reason for not taking action.

I would also like to make it clear that my bill deals only with the inter-provincial movement of wine. My bill proposes no changes to how wine is imported into Canada, nor does it amend the Excise Act.

To summarize, my bill would make it easier for Canadian wineries to sell to Canadians.

There is much that we have disagreed on so far in this 41st session of Parliament. It gives me great pleasure to know that when it comes time to removing trade barriers that prevent Canadians from selling to fellow Canadians across this great country that our House can come together and be united on behalf of our constituents.

Again I would like to thank all members of the House for their support for Bill C-311.

[The Deputy Speaker, NDP, Denise Savoie]

It being 5:30 p.m., the time provided for debate has expired. The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.