Good morning.
The St. Catharines-Thorold Chamber of Commerce is located in the heart of Niagara, for a bit of geographical reference, in Ontario's wine country. It's one of the largest chambers in southern Ontario and represents a large breadth of businesses of different sizes.
The key this morning to our presentation, the salient point, concerns removing interprovincial trade barriers for Canadian VQA wine delivery as a critical piece in the future of this industry and the future of Niagara.
As a bit of background, in Canada it is illegal to “direct deliver” alcohol across provincial borders to an individual or to a business not affiliated with the provincial liquor board or approved seller. Since 1928, the Importation of Intoxicating Liquors Act has prevented the direct sale of liquor across provincial boundaries. Some wineries ignore the rule, even using Canada Post to transport their products; others will not “direct deliver” beyond provincial borders. In addition, the law actually prohibits individuals from taking even one bottle across provincial boundaries. In Canada, where we have 100% world-class VQA wines, there is a certain opportunity here to take away a competitive barrier that exists within the industry.
The growth of the B.C. and Ontario wine industry is extremely beneficial to Canada. Not only does the domestic wine industry create jobs, preserve valuable agricultural land, and create vibrant tourism destinations; it also adds value to the economy in many other ways. A 2002 study of KPMG commissioned by the Wine Council of Ontario found that the sale of a litre of wine adds $4.20 in value to the Ontario economy, compared with $0.56 in value from the sale of imported wines, demonstrating the higher value associated with the wine produced locally in Canada.
With strong wine markets in B.C. and Ontario as well as emerging markets in Quebec, Nova Scotia, New Brunswick, and Prince Edward Island, the issue is particularly salient. Similarly, the Ontario Chamber of Commerce, the British Columbia Chamber of Commerce, and the Canadian Chamber of Commerce, as well as the Canadian Vintners Association, have all passed resolutions that the provinces and the federal government work together to eliminate the barriers associated with the wine industry in interprovincial trade. This demonstrates that there is a real grassroots impetus from the business community to see this law changed.
You have seen the additional comments that were provided in the submission from the St. Catharines-Thorold Chamber of Commerce. We are urging that, similar to the case in 2007, when the throne speech was used to begin an important process of eliminating interprovincial trade barriers related to this industry, the 2011 budget process be used as a starting point to begin working with the federal and provincial governments to eliminate this particular interprovincial trade barrier.
Last, but certainly not least, I'm pleased this morning to have our member of Parliament, Mr. Rick Dykstra in the room and as part of the Standing Committee on Finance. He has been working with the St. Catharines-Thorold Chamber of Commerce on this particular issue.
I'm happy to take any questions as proceedings continue.