ANNAPOLIS VALLEY: Nova Scotia wineries and grape growers say a $6-12 million handout to commercial wine bottlers will destroy the burgeoning local wine industry and could impact more than 1,100 families in rural parts of the province.
The province is administering the Commercial Wine Support Program, which Finance Minister Allan MacMaster publicly stated was introduced for Nova Scotia to meet international trade laws.
In a release, the industry said it rejects this explanation and says it is not accurate.
In July 2020, Australia and Canada informed the World Trade Organization (WTO) Panel on Measures Governing the Sale of Wine, that they had reached a mutually agreed solution regarding Australia’s claims with respect to the federal excise duty exemption and the Nova Scotia Emerging Wine Regions Policy (EWRP).
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Nova Scotia agreed that the preferential markup for local wines under the EWRP would be removed by July 2024.
The Nova Scotia government is implying that they have to subsidize commercial wine bottlers to be trade compliant, but the agreement reached in July 2020 is unrelated to commercial bottlers.
The WTO summary report of the panel demonstrates that this is not a trade mandated program.
The mutually agreed solution between Australia and Canada makes no mention of commercial bottlers in the province.
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The Wine Growers Association of Nova Scotia and the Grape Growers Association of Nova Scotia said this is a matter of supporting local and that Nova Scotia tax dollars should not be used to subsidize grape growers in other countries.
“Nova Scotia vineyard operators are deeply concerned about how they will be impacted by subsidizing bottlers to import cheap bulk wine,” said Steve Ells, president of Grape Growers Association of Nova Scotia. “Would PEI taxpayers tolerate subsidizing the import of potatoes from China to make french fries, undermining their local potato farmers? I don’t think so.”
Both organizations say there is a place for commercial bottlers, but wage subsidy programs or other incentives based on the number of jobs created and employees hired are more appropriate.
“We don’t have an issue with attracting other forms of production to Nova Scotia, but we do have serious concerns with a program that undermines the decades of hard work that has resulted in over 1,500 acres of vineyards and 20 wineries,” said Ashley McConnell-Gordon, co-owner of Benjamin Bridge.
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“We are proud of the economic impact that our vineyards and farm wineries deliver to all Nova Scotia families, and know there is much greater potential ahead, especially as we open new markets for our internationally acclaimed Nova Scotia grown wine.”
She added that meaningful stakeholder engagement could address government priorities, support all forms of production, and ensure a vibrant wine growing industry that can keep delivering positive economic impact to Nova Scotians.
The industry groups were not consulted before the decision was made to launch the program.
