GEORGE GREENWOOD
KELOWNA – The Kelowna Chamber has amped up its call to the B.C. Government to make some long-awaited changes to its regulations around the production and sale of distilled spirits. The tariffs issue, combined with renewed emphasis on reducing barriers to interprovincial trade, have once again brought this issue to the surface.
The Chamber has sent an urgent letter to the Solicitor General of B.C. Minister Garry Begg, highlighting the issue and calling for immediate action. Begg, who is also Minister of Public Safety, is asked to review the drag on business that current liquor board regulations put on small distilleries in B.C. More profit goes to the government than to the originating distillery under the government’s long-standing regulatory framework.
The Chamber reminded the Minister of its policy around Leveling the Playing Field, adopted by the B.C. Chamber two years ago, and called for action on its recommendations to make changes. Most distilleries in B.C. are small, and are struggling to compete against larger non-B.C. based distilleries that overwhelm the market with a range of competing products.
Craft BC advises that each bottle distilled locally in B.C. represents $20 of local economic development before it hits the shelves. Currently each distillery’s annual production is limited to 50,000 litres. Growing that to 250,000 litres would generate an additional $4 million per distillery, noted to be direct economic impact to their region. 250,000 litres is still only one-sixth of the output of a successful B.C. winery.
Overall, says Craft BC, that increase grows B.C.’s economic generation by $350 million. A simultaneous reduction in interprovincial trade barriers would only magnify the potential growth.
The Chamber’s letter to the Minister calls for an immediate approval of the 2018 recommendations of the B.C. Business Technical Advisory Panel of 2018 – these will enhance fairness and opportunity for all producers.
George Greenwood is CEO of the Kelowna Chamber of Commerce
