National Post

Sorry, Alberta — let the beer in

- Marni Soupcoff Marni Soupcoff is executive director of the Canadian Constituti­on Foundation ( theccf.ca), which is supporting a con stitutiona­l challenge to New Brunswick’s protection­ist limits on interprovi­ncial alcohol imports in the case R vs. Comeau

As the constituti­onal challenge to New Brunswick’s protection­ist limits on interprovi­ncial alcohol imports continues, it is becoming clear that, in the effort to protect free trade within Canada, we have to be on guard nationwide.

Alberta, long viewed as progressiv­e in its alcohol regulation­s for at least allowing sales of beer and wine through private (non-government) stores, has now caught the protection­ist bug; the province has brought in a new budget measure that imposes significan­tly heavier taxes on brewers from outside Alberta, British Columbia and Saskatchew­an, compared to their similarly sized counterpar­ts within.

The new tax set-up is great for craft brewers in the three chosen provinces, but it’s lousy for just about everyone else, including Alberta beer importers and Alberta consumers, who will see prices rise on all alcohol sold in the province, but dramatical­ly so on craft beer that comes from outside the favoured provincial triumvirat­e.

As explained to the Calgary Herald by Vern Raincock, the Alberta account manager for Garrison Brewing based in Halifax, the cost of buying a Garrison keg in Alberta has now gone up $33.07 in taxes.

Essentiall­y, the government is justifying the change on the grounds that it will create new Alberta jobs through startup and growing craft breweries. That would be a reasonable enough goal if didn’t overlook the current Alberta jobs that the change could be killing — those of the many Alberta beer importers and Alberta suppliers who service brewing operations east of Saskatchew­an. And that’s not even mentioning the hospitalit­y ( especially restaurant and pub) jobs that might be sacrificed because of the decrease in beer selection.

It is this short- sighted failure to appreciate the local wealth free interprovi­ncial trade provides that has afflicted New Brunswick. The government there insists that its stringent limits on bringing in alcohol from outside the province ( no more than one bottle of wine or spirits; no more than 12 pints of beer) are economical­ly essential. It seems not to have considered how much good open beer borders would do New Brunswick breweries, pubs, restaurant­s, and consumers — and the New Brunswick government, which would reap the financial benefits of the economic growth.

The other t hing t hese provinces seem not to have considered is the Canadian Constituti­on, which explicitly protects the free flow of goods from one province to another. Even the flawed Prohibitio­nera Gold Seal Supreme Court of Canada case, which offers an illogicall­y narrow interpreta­tion of Section 121, recognizes that the provision at least prohibits interprovi­ncial tariffs.

It is this which makes Alberta’s new budget measure legally problemati­c. Whatever honourable intentions the Alberta Liquor and Gaming Commission may have about encouragin­g economic growth at home, there is no way the differenti­al tax treatment of brewers based on their province of origin should stand up in court.

Equally problemati­c in my mind, and in the mind of my colleague Derek James From, who has written about it in the Calgary Herald, is the idea that the Alberta government would be stepping in to choose which craft beers its citizens should be buying and enjoying.

Few craft beer enthusiast­s make decisions about what they buy based exclusivel­y on where the product was produced; they’re concerned about taste, packaging, quality, and a bunch of other factors that mean little to a non-beerdrinke­r like me. That should remain their choice to make; and if they are not choosing as many Alberta, British Columbia and Saskatchew­an beers as the producers in those provinces would like, that is a sign that the producers may need to change their game, not that the government should change the rules.

Pundits and economists continue the fight against the fiction that protection­ism is a wise economic choice. At the same time, lawyers like those of us at the Canadian Constitu-

As the constituti­onal challenge to New Brunswick’s protection­ist limits on interprovi­ncial alcohol imports continues, it is becoming clear that, in the effort to protect free trade within Canada, we have to be on guard nationwide

tion Foundation and our pro bono partners Ian Blue and Arnold Schwisberg continue the legal fight against unconstitu­tional barriers to interprovi­ncial trade. However much New Brunswick, Alberta and other provinces may want to privilege their own local businesses over others, the Constituti­on just won’t allow it. And this is to the benefit of all Canadians — especially those with a taste for craft beer.

 ?? Wayne Cuddington / Ottawa
Citizen ?? Brewers outside Alberta, B.C., and Saskatchew­an face tax hit.
Wayne Cuddington / Ottawa Citizen Brewers outside Alberta, B.C., and Saskatchew­an face tax hit.
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