PROVINCIAL PROHIBITION
100-YEAR-OLD PROVINCIAL
PROHIBITION LAW
FINALLY SEES THE LIGHT AT THE END OF A VERY LONG TUNNEL
" F
or too long, Canadians have been
frustrated by the restrictions on
the transportation of Canadian
beer, wine and spirits between
provinces and territories. This
legislation will remove the only remaining
federal barrier to trade on alcohol, and
the onus will be on provincial and
territorial governments to change their
own regulations, paving the way for
direct-to-consumer alcohol sales from
across Canada. Removing barriers to trade
between provinces and territories fosters
economic growth, reduces the regulatory
burden on our small and medium-sized
businesses, and creates good, middle-class
jobs across the country.”
-The Honourable Dominic LeBlanc,
Minister of Intergovernmental and
Northern Affairs and Internal Trade
April 2018 was the first sign of some
potential movement in this area, only
to take the back seat once again. The
Supreme Court of Canada heard a case
from a local New Brunswick man who
was caught transporting beer for personal
consumption across provincial lines. After
a five-year legal battle, the man lost his
bid to be able to stock up on cheap beer in
neighboring Quebec.
The Supreme Court of Canada
unanimously ruled that Canadians do
not have a constitutional right to buy and
transport alcohol across provincial borders
6
without impediments. But at that time the
provincial government was hinting it will
look at easing limits on interprovincial
alcohol. 1
FAST FORWARD ALMOST A YEAR
TO THE DAY LATER, OTTAWA, APRIL
9, 2019 – The Honourable Dominic
LeBlanc, Minister of Intergovernmental
and Northern Affairs and Internal Trade,
highlighted plans to eliminate the only
remaining federal barrier to trade in
alcoholic beverages within Canada, taking
the first step to give Canadians better
access to Canadian products without
restrictions.
The Government of Canada is taking a
leading role in promoting trade within
Canada, including in wine, beer and
spirits, to grow the economy and create
good middle-class jobs. As promised in the
recent 2019 Budget, the Government of
Canada has introduced legislation which
will remove the federal requirement that
alcohol moving from one province to
another go through a provincial liquor
authority. Once that measure passes,
provinces and territories will need to make
their own changes in order for direct-to-
consumer shipping to be allowed across
Canada. 2
QUICK FACTS:
•
Canadian wineries, breweries,
distilleries and other alcohol producers
directly employ about 20,000 people
• Alcohol manufacturing sales exceeded
$8 billion last year, including exports
of almost $1 billion
• The proposed amendments are to the
federal Importation of Intoxicating
Liquors Act
The only thing this law is allowing in
individual provinces is to control the
margins on what small-to medium-sized
companies can make. Ontario in particular
with the LCBO and Beer Stores controlling
all of the sales of wine, beer and spirits,
have had a monopoly on the alcohol market
for a long time.
WHY ARE THESE CHANGES SO
IMPORTANT?
Allowing small-to medium-sized business
in Canada to increase sales and margins,
will allow for more businesses in each