Nova Scotia’s wine industry is worried the province is not acting fast enough to bring in a new policy to replace a special tax break for local growers.
They’re calling for answers, saying that losing the Nova Scotia Liquor Corporation’s (NSLC) Emerging Wine Regions Policy will have steep financial consequences.
Winemakers and grape growers are concerned about the phase-out of the mark-up policy, which helps Nova Scotians try their products.
Under the program, the NSLC slashes its tax on wines from emerging regions from 100 to 43 per cent per bottle.
With just 90 days remaining, those in the industry say now is the time to announce its replacement.
“We need some stability and security in the industry,” says Grape Growers Association of Nova Scotia President Steve Ells. “And the announcement of the new program would give us a better feeling for investing in new equipment and bringing in workers for the upcoming season.”
He’s a grape grower who depends on wineries for sales. He says the entire industry will be hit by the loss of the program.
The province is cutting the policy because of a complaint filed by Australia in 2018 with the World Trade Organization which argued the emerging wines policy was an unfair trade practice.
Ells says growers and wineries want to be able to compete and need a supportive program to help their sales.
“What we’re really looking for in a program is something that would put us on the same level as the other main wine regions in Canada,” Ells explains. “Ontario, British Columbia, and Quebec all have programs that support their industries.”
Wine Growers Nova Scotia is on the same page.
“You look at other agriculture sectors and we’re just asking to have a similar program that other agricultural sectors have,” explains Executive Director Haley Brown. “It’s important. It’s critical to our survival.”
She adds the wine industry is also important to Nova Scotia’s tourism as it contributes around $250 million annually to the economy.
The province says a plan is in development and details will be shared soon.
“We’re working with three government departments — Agriculture, Intergovernmental Affairs, and Finance, and we’re dealing with a WTO ruling,” says Agriculture Minister Greg Morrow. “So this has been a focus since we formed government.”
The Minister Responsible for the NSLC says they have to be careful as the WTO is involved.
“We have to ensure that what we have going forward is trade compliant,” Allan MacMaster says. “We have to do that and I believe the industry understands that.”
The industry was already hard-hit over the winter after a polar vortex swept the region and devastated crops. The province offered $15 million in support to impacted fruit growers.
Nova Scotia must start phasing out the emerging wines policy by June 30th.
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