Wine boycott heats up pipeline war
Vintners say Alberta using them as ‘political football’ in dispute
B.C. vintners are seeing red after the Alberta government launched a trade war against B.C. wine in retaliation for this province’s pipeline resistance.
On Tuesday, Alberta Premier Rachel Notley said the agency of her government that is the provincial wholesaler of alcohol will stop buying B.C. wine.
The ban is Notley’s response to the B.C. government’s decision last week to try to restrict increases in bitumen shipments from Alberta until more studies are conducted on how spills of oilsands bitumen can be cleaned up.
Notley said Alberta imports about 7.2 million bottles of B.C. wine worth $70 million each year.
It’s the latest blow in the fight between the two NDP governments over the $7.4-billion Trans Mountain pipeline expansion, which was approved in 2016 by the federal government. It would triple capacity on the 1,150-kilometre line running from Edmonton to Burnaby.
“We will not let the government of B.C. hold Alberta’s and Canada’s economy hostage, and jeopardize the economic security of hundreds of thousands of working families across this province and across this country,” Notley told a news conference held at the Alberta legislature.
To scrap the pipeline would cost the Alberta economy $1.5 billion a year, Notley said. She said her province is willing to risk $5 million in fines for violating the New West Partnership Trade Agreement among the western provinces by the trade action.
“The wine industry is very important to B.C. Not nearly as important as the energy industry is to Alberta and Canada, but important nonetheless,” said Notley.
“I’m also encouraging all Albertans: Next time you’re thinking about ordering a glass of wine, think of our energy workers. Think of your neighbours. Think of our community. Think about our province, and maybe choose some terrific Alberta craft beer instead.”
B.C. Premier John Horgan shot back on Tuesday, warning Notley to back off. He said in a statement that his government has every right to consult British Columbians on measures meant to protect B.C. lands and waters from a potential spill of diluted bitumen.
“If Alberta disagrees, they can make that argument in the proper venue, in our court system,” Horgan said.
“Our consultation on proposed new regulations hasn’t even begun, but Alberta has seen fit to take measures to impact B.C. businesses,” said Horgan. “I urge Alberta to step back from this threatening position. We stand with B.C. wine producers and will respond to the unfair trade actions announced today.”
The new B.C. Opposition leader, Andrew Wilkinson, slammed both the Alberta government for its wine ban and the B.C. NDP government for provoking the move with pipeline actions that he said will likely lose in court.
“The wine sector is going to be the innocent victim of a petty dispute between two NDP governments,” the Liberal leader said.
Notley’s wine ban follows her suspension last week of talks to buy electricity from B.C., a deal that would be worth $500 million a year to B.C.
Phones at the B.C. Wine Institute rang off the hook Tuesday as members of the trade organization sought answers as to how the wine ban will affect them, said president and CEO Miles Prodan.
Prodan said his organization, with a membership that represents 95 per cent of all VQA wine sales in B.C., is disappointed by the Alberta government’s decision, which he said unfairly uses a “relatively small industry” as a “political football” in the pipeline debate.
“It’s very worrisome,” Prodan said. “As our largest market outside of the province, it’s significant.”
Prodan said Notley’s $70-million figure represents the wholesale value of B.C. wine sold in Alberta. However, the retail value is closer to $160 million.
About 30 per cent of wine sold in Alberta is produced or bottled in B.C., Prodan said.
“We’ve talked to our government and asked that they clarify their position on the pipeline and make sure that we’re not being used as a pawn in this game,” Prodan said.
Prodan said his organization hopes the B.C. government will help alleviate the financial impact of Alberta’s ban by allowing B.C. wineries to sell more product in grocery stores and in government liquor stores.
“That wine is going to have to find a home,” he said.
Jason Ocenas, manager of Township 7, which has wineries in Langley and on the Naramata Bench, said he’s troubled by Alberta’s decision to follow the lead of a Fort McMurray restaurant that last week pulled B.C. wines from its menu as a “PR stunt” in response to the pipeline spat.
Ocenas believes it is unfair that his industry has been made a scapegoat.
“We’re a small winery and taking away a revenue channel like Alberta … of course it’s going to affect us,” he said. “As a small winery, you’ve got to look at whatever competitive market you can do, and the growth of popularity with Albertans wanting B.C. wine has been huge.”