233067
232178

BC  

Booze rules may need tweak

B.C.'s new booze rules could be breaking international free-trade agreements, according to a California-based wine group.

The new rules are set to come into effect April 1. Among the changes is the planned introduction of B.C. VQA wines to grocery stores, which would not be governed by the "store within a store" model for liquor and craft beer. 

On Jan. 21, Tom LaFaille, vice-president and international trade counsel for the Wine Institute, an association of 1,000 California wineries and businesses, penned a letter to Premier Christy Clark saying that if stores were allowed to sell B.C. wines only, that would break several international agreements.

"We believe that the proposal allowing only B.C. Vintners Quality Alliance wines to be sold at B.C. grocery stores should be withdrawn or modified to allow for the sale of imported wines. Since these new opportunities are not extended to imported wines, they violate Canada's international trade obligations, including NAFTA, GATT and the EU-Canada Agreement on wine sales," reads the letter.

The letter goes on to say that only certain stores protected by a 1987 grandfather clause can favour B.C. VQA wines, and any new stores would be in breach of Canada's international obligations.

Minister of Justice Suzanne Anton gave Castanet the following statement with regard to the letter:

“I’m aware of the correspondence from the Wine Institute and the nature of the concerns – staff are reviewing the items raised in the letter.

"International trade agreements recognize that products should be treated equally and fairly. Our intention with our changes is to allow liquor in grocery stores and to find a balance that meets these requirements and also promotes the quality local products that are made and bottled in B.C.

"Our work to continue to modernize our liquor laws will result in more convenience for British Columbians, a fair promotion of B.C. wineries and products in stores, and a continued balance on maintaining the health and safety of customers.”

Anton did not say whether any changes to the law would delay the April 1 implementation. 

On Friday, Anton also announced a change to the wholesale wine pricing scheme that was revealed in November. 

The initial plan was to apply a base mark-up of 89 per cent to the first $11.75 per litre of wine, and a second-tier mark-up of 67 per cent on the remainder. 

The update will decrease the second tier mark-up from 67 per cent to 27 per cent in an apparent effort to keep wholesale prices more consistent with what industry sees today.

“Our wholesale pricing model is not intended to increase government revenue or retail prices. Rather, the model is designed to generate approximately the same amount of government revenue from each product category as we receive today," Anton said in a release.

Revenue from liquor sales in B.C. contributes more than $1.2 billion towards the provincial economy. 



More BC News