Nova Scotia’s premier’s name appeared in Australian trade complaint over wine pricing

Nova Scotia Premier Tim Houston’s recent warnings against speaking out on provincial wine subsidies appear rooted in an Australian trade case against Canada, and three provinces, including his own.

An Australian document filed in May 2019 contains a passage quoting Houston when he was a member of the opposition.

The document filed with the World Trade Organization refers to Houston’s short exchange with the president of the Nova Scotia Liquor Corporation (NSLC) during a legislature public accounts committee meeting in November 2014.

Houston asked Bret Mitchell, the president of the corporation at the time, about the agency’s markup for local wine.

“Do I understand correctly that the NSLC cut its markup that it had on local wine a few years ago and did that help to increase the sales of the wine?” Houston asked.

Mitchell replied: “Absolutely … we did cut our markup and it has absolutely allowed them (local producers) to sell within our environments.”

The document also refers to a May 2015 legislature resources committee meeting discussing Nova Scotia’s wine price markup — not involving Houston — and adds that the quoted passages are evidence of a policy designed to protect local wines.

The 128-page Australian submission accuses Canada, Nova Scotia, Ontario and Quebec of pricing practices that contravene the 1994 General Agreement on Tariffs and Trade.

Houston told reporters on Wednesday that he didn’t remember the committee exchange, but he was aware it had become part of Australia’s trade case. He said he wasn’t trying to harm the province’s trade position.

“Absolutely not, and this is why I’ve been trying to caution many people about trade sensitivities,” he said. Houston’s office later sent an email to reporters saying the section quoting the premier in the Australian document was only one part of evidence that was submitted going back to 2006. “There is no evidence this was the trigger for the challenge,” his office said.

Liberal Opposition Leader Zach Churchill said the fact Houston was named is “laughable” given the premier cautioned him and NDP Leader Claudia Chender about speaking out against a new program to subsidize wine bottlers, saying it could lead to another trade challenge.

“It’s absolutely hilarious,” said Churchill. “The premier often now is giving the impression of being a very serious hypocrite.”

Chender said the fact the premier never mentioned that he is quoted in the trade complaint was part of a “pattern of obfuscation” in the face of opposition questioning about the subsidy for wine bottlers.

“He should have said that on the floor of the house and been clear about that,” she said.

On Tuesday, Houston announced a pause on the subsidy program for bottlers after drawing heavy fire from the opposition parties and the agricultural wine sector.

This report by The Canadian Press was first published March 21, 2024.