Thank you, Mr. Chairman.
I am Jan Westcott, the president and CEO of Spirits Canada. We are the only national trade association representing the interests of Canadian spirits manufacturers.
I am particularly pleased to be able to appear before you today here in Windsor, home of the largest distilled spirits plant in North America. In fact, we are currently sitting within 25 kilometres of over 10 million barrels of Canadian whiskey, slowly maturing, awaiting transformation into that golden elixir, Canada's iconic spirit. If you are tempted to get up, I'll understand why. It's just down the road, waiting.
We are here today to request your support for a $1 reduction in federal excise duties imposed on spirits—that is to say, a modest reduction from the current $11.69.06 per litre of alcohol to $10.69.06. On a typical 750 millilitre bottle, even after such a reduction in federal excise duties, they would still be over $3.20, a very high level by any comparable measure.
We also note that federal spirits excise revenues generated last year were over $170 million more than they were in 2006. And I'll come back to that; it's an important date. Excessive provincial and federal commodity taxes on spirits were identified as a key barrier to success in the first Canadian whiskey summit held earlier this year. The summit was attended by a broad range of stakeholders committed to developing a long-term strategy to re-invigorate Canada's signature drink category, including regulators, retailers, bartenders, farmers, manufacturers, media, and academics.
As you will recall, this particular committee previously supported the elimination of all excise duties on wines made from Canadian grapes and fruit, as well as a rate reduction for beer. The finance committee's recommendations were adopted by the government in the 2006 budget and remain in place to this day. We respectfully suggest it is time to turn federal tax policy attention to Canada's true national drink, Canadian whiskey, and other fine spirits.
The Canadian spirits industry has a very long and colourful history, predating Confederation, and has been a core export-intensive business from the very beginning. Yet spirits manufacturers have not been provided with the necessary tools and support to be a true international champion for Canada.
Our members make exceptional products enjoyed by adult consumers around the world, but they are faced with a heavy and unsustainable fiscal burden that impairs the industry's ability to compete and succeed. Spirits have the singular honour of being part of adult Canadians' moments of celebration and relaxation. Spirits help to contribute to positive social interaction between family, friends, and neighbours. We are proud of our role in the lives of Canadians for generations upon generations.
The spirits industry also takes our obligations very seriously. We have worked diligently with other committed stakeholders to bring to life the recommendations of Canada's national alcohol strategy, including the recent development of formal low-risk drinking guidelines. These guidelines provide expert advice to those who choose to drink, so they may do so in a form and a fashion that minimizes the risk of any harm.
Spirits manufacturing is also inexorably tied to the land through farmers, who grow the country's corn, wheat, barley, and rye. Taxes on spirits are a tax on these agricultural grains as well as on the farm families who grow them.
Spirits taxes are also a tax on those small independent businesses that sell spirits in licensed bars, restaurants, and clubs across the country. Spirits taxes are a tax on hardworking families who enjoy an occasional drink with their friends and neighbours.
We have provided some background information on Canada's spirits industry's key economic indicators and a summary of the top 15 reasons why we believe a reduction in the spirits excise burden deserves serious consideration. I am not going to go through all of them today, but I would just note one or two. We believe a reduction will provide the opportunity to grow our international exports. We currently export about $500 million worth of whiskey and other spirits around the world. Clearly, there is an opportunity to increase treasury revenues by stimulating the business. Last, a modest reduction in excise duty would spur investment in our industry in quite dramatic fashion.
Thank you very much for your time.