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Decentralized Democracy

House Hansard - 106

44th Parl. 1st Sess.
October 3, 2022 11:00AM
  • Oct/3/22 7:01:27 p.m.
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Madam Speaker, I asked on May 20 whether the finance minister would keep her promise to support the long-term interests of wineries and cideries, especially smaller businesses like the cideries in my riding of Bruce—Grey—Owen Sound, or just continue to tax them into bankruptcy. I want to thank the finance minister for listening to those of us in opposition, especially those in the Conservative Party, the Bloc Québécois and even, I believe, the NDP, who were calling for an exemption so that Canadian wineries and cideries using Canadian honey or apples could be exempt from the excise duty. That being said, I would like to remind the Liberal government of the following facts. Canada has thousands of high-quality wineries, breweries, cideries and distilleries. Over 95% of these producers are small businesses, many of which have been impacted by the COVID-19 pandemic, the inflation crisis, payroll tax increases, labour shortages and the ongoing supply chain issues. Small businesses have taken on an average of almost $170,000 in new pandemic-related debt over the last couple of years. The cost of living continues to increase faster than prevailing wages. Agriculture producers are already facing serious supply chain disruptions, and the hospitality sector was one of the hardest hit during the pandemic. These continued Liberal increases in the excise tax on alcohol will hurt the entire industry, from growers to producers to restaurants to consumers. Furthermore, as a consequence of 40-year record inflation, the tax increase will be higher than ever due to it being tied to the consumer price index. Canada’s excise duty regime is already uncompetitive compared with those of peer countries, and the escalator makes it worse. Now is not the time to make doing business more expensive via another tax increase. Tonight, will the finance minister commit to supporting Bill C-266, which would repeal or amend the annual adjustments to the duties on beer, malt, liquor, spirits and wine, or at least freeze the escalator tax and stop the annual increase?
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  • Oct/3/22 7:03:37 p.m.
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Madam Speaker, I would like to thank the hon. member for Bruce—Grey—Owen Sound for his focus on Canada's world-class wine industry. From British Columbia to Ontario to Atlantic Canada, hundreds of wineries and cideries continue to drive our economy, supporting tens of thousands of jobs and providing billions of dollars in economic benefit. Wine country tourism attracts more than four million tourists a year and contributes over $1.5 billion to the economy. Over the past five years alone, employment in the industry has grown by 70%, to about 8,500 jobs. Wine sales have almost doubled, to over $2 billion, and sales of Canadian alcoholic ciders have increased over 80%, to more than $240 million. We have worked hand in hand with the industry to create a program that would help it remain competitive. In June, our Minister of Agriculture and Agri-Food announced a two-year program of up to $160 million. It is a wine sector support program. The program is now up and running and is providing wineries with the tools they need to stay innovative and competitive and to capitalize on new opportunities. All licensed wineries in Canada that produce or contract out the production of bulk wine from primary agricultural products, such as grapes, berries, other fruits, dandelions, rice and sap, are eligible for support under the program. For example, a grape winery that produced 100,000 litres of wine in the past year may be eligible to receive about $80,000 through the program. Canada's wine industry is robust and largely rural-based. The industry faces various challenges impacting its competitiveness, such as climate change, geography and labour costs. Support from this new program will enable the wine industry's businesses to become more resilient and will provide economic stability within the industry. The program is intended to support Canadian wineries as they adapt to ongoing and emerging challenges over the short term. The bottom line is that we stand firmly in favour of supporting this industry in its growth, economic development and ability to export. To quote Kelly Brown, chair of Wine Growers Canada, “Thanks to the leadership of the Government of Canada, Canada's wine industry is ready to grow back better.” I want to thank the four wineries back home that make great wine. I am sure my hon. colleague and I could compete over who has the best wine.
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  • Oct/3/22 7:06:30 p.m.
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Madam Speaker, to push back, I am not going to argue with the Parliamentary Secretary to the Minister of Agriculture and Agri-Food about who has the best wine. I have more orchards and cideries, even though I do have a couple wineries in my riding. I am a little disappointed because the parliamentary secretary did not answer my two simple questions: Will the government commit to supporting Bill C-266 that will repeal or amend the annual adjustments to the duty on beer, malt liquor, spirits and wine, or at least freeze the escalator tax and stop these annual increases?
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