Cheers or concern over Ford’s support for alcohol sector

Support is pouring in from the change in direction of the provincial government’s support of the alcohol sector.

“It’s surprising almost, something that you can’t believe is happening, but good to see,” said Steve Mitchell, president of Sprucewood Shores Estate Winery, who is happy The Ford government has opened the door to spending over $200-million over five years on a number of initiatives aimed at increasing production and sales of Ontario made alcoholic beverages.

The largest wineries will benefit from a program called the Ontario grape Support Program.

“They’ve incentivized the use for blended wines to increase the content of Canadian grown grapes in their blended wines,” said Mitchell, who doubles as treasurer of the Craft Wine Association.

Craft and small producers of wines, spirits and beers will benefit when selling to the LCBO, grocery and convenience stores.

“There’s a certain margin that can be expected so now there’s going to be improvement to that margin so that it makes it more tenable for producers to actually participate,” he said.

Small wineries and distilleries will also gain at the retail end through margin enhancements. There will also be improvements for licensees.

“They’re going to go from what was previously a 10 per cent licensee discount, I believe is going to a 15 per cent licensee discount so giving a little bit more support there too,” said Mitchell.

When asked, Mitchell said there is an element of government response to the current tariff conditions with the U.S. in order to help the Ontario economy and it’s high time for the change.

“As a result of programs like these, what you’re going to find is that wineries are investing. Wineries such as ours are investing. We’re taking this opportunity seeing that there’s growth and latching right onto it,” he said.

Windsor-West MPP Lisa Gretzky is happy to see support for small business but questions the government’s overall strategy for the alcohol sector, “When you’re looking at the tax cuts, especially going to talk about the LCBO. When you’re looking at the tax cuts, the revenue that’s usually generated through those taxes goes back into the government and into the public.”

Gretzky said that money is normally invested in infrastructure, health care, education or social programs, “So when they’re reducing those taxes, that’s less revenue coming in to be able to invest in those programs so what the government needs to do is be looking at how they’re spending the money. The government should be spending taxpayers’ dollars on the supports and services that people need.”