Thank you very much, Mr. Chairman and members of the committee.
I am the CEO of the Grape Growers of Ontario. I'm here today representing over 560 growers in Ontario and in six provinces across Canada.
I'm here to talk to you about a national replant program and a tree and tender fruit program. I will table the full documentation with the clerk as we proceed, if the committee so allows.
I'd like to talk to you today from the perspective of the Ontario Grape Growers. Before I begin, I want to make sure you understand that I will answer two of the questions I'm sure are on your mind as I proceed with this presentation.
I am presenting you—and I think it's probably very strange that agriculture would come here today and present you—with an opportunity where we can make money for you. This is a unique opportunity, and I'm asking you to make a real investment in agriculture in this country—one that will more than pay for itself year after year after year. A small investment will be paid back to the government through full tax revenue recovery, and the secondary benefit through economic growth will exceed the initial investment by two or three times every year, continuing forward.
From the perspective of the grape and wine industry, the ultimate goal of a national replant program is to provide an infrastructure boost for our domestic producers to assist them in competing in a global premium wine market.
In the past, government has assisted in a period of crisis, and we are there again today. In 1989, the grape acreage reduction program was the precursor to the vibrant industry we see today that has provided a solid foundation. But we need to continue to shore up that foundation.
The climate in Ontario is unpredictable and harsh.Over the weekend, we had a snowstorm just outside Fort Erie. Many of our premier vines were damaged and are no longer able to produce the quality fruit we require.
Also, there are over 1,000 acres of juice grape vines that will soon be abandoned because there is no longer a market for this industry. In fact, the contracts have been cancelled by the American processor.
By strategically replanting these areas, we can breathe new life into our grape and wine industry and begin to compete on an international stage. Ontario grape growers are going to be able to focus on planting high-quality vinifera. I don't want to take time today to give you a lesson about all the varieties we have out there. High-quality vinifera go into our wines, and there are many of them that can characterize our premium Canadian VQA wines.
Our industry maintains and looks after a detailed vine census and data-mapping system, so we know every acre of grape vine that is planted in Ontario. We can tell you exactly what variety and what block it came from. We know where it's been grown successfully and in what climate and soil conditions.
By replacing older, non-productive vines with high-quality product, we can begin to refine our industry to compete on the international stage—and we are lagging behind. We are behind other countries, such as Italy, France, Australia, and New Zealand. Similar public-private partnerships have grown extremely useful in other jurisdictions around the world.
This replant program will also allow juice grape growers in a failed industry today to transition into more productive, higher-quality, and higher-valued products. These farmers are in crisis in Ontario, and without replant they'll be forced to abandon their farms.
The documents I'm going to provide today look at the economic opportunities, and I will table additional documents with the clerk, so you will have a chance to review them.
I'm going to give you a quick opportunity to understand what I'm suggesting. The sale of each bottle of wine in Ontario generates $1.04 in tax. Over the next five years and up to the next ten years, we can generate $995 million of federal revenue that can be pumped back into our economy. We are a very high-quality, value-add industry.
I'm almost at my time limit.
I'd like to thank you, Mr. Chairman, for this opportunity. I'd be happy to discuss this as we proceed this afternoon.