Issue link: http://winesandvines.uberflip.com/i/987926
June 2018 WINES&VINES 21 WINE INDUSTRY NEWS that the court is thinking about the pipeline and the retaliatory measures taken by Alberta and proposed by Alberta because they explic- itly use the word 'punish.'" B.C. opposes the pipeline on the grounds it poses a risk to the natural environment, espe- cially coastal waters. While the province can't stop construction of the pipeline, which has federal approval, it can tightly regulate its operations. The strategy of B.C. outrages Alberta, as well as the neighboring province of Saskatch- ewan. Oil is a significant industry for both, and the two have introduced legislation that would give them authority to cut fuel supplies to B.C. The unanimous decision by Supreme Court justices let restrictions on the movement of liquor under Section 121 of Canada's constitu- tion remain in place because the primary pur- pose of the law was to support local jurisdiction over liquor rather than restrict trade between provinces. However, paragraph 111 of the court's deci- sion notes that laws reflecting "purposes tra- ditionally served by tariffs, such as exploiting the passage of goods across a border solely as a way to collect funds, protecting local industry or punishing another province" could be con- sidered impediments to the free movement of goods. This interpretation means legislation in Al- berta and Saskatchewan that cuts fuel supplies to B.C. would be illegal. It also means Alberta's move in early March to halt imports of B.C. wine in response to B.C.'s pipeline concerns was out of line. The ban ended in mid-March when B.C. pledged to obtain a legal opinion on its own stance. Also in the offing is a report due this sum- mer from the Alcoholic Beverages Working group established when the Canada Free Trade Agreement took effect last summer. The group gives its mandate as, "identifying specific op- portunities and recommendations to further enhance trade in alcoholic beverages within Canada, while being mindful of social respon- sibility and international obligations." A four-week public consultation last fall yielded 500 submissions that will guide the group's recommendations. "[It] obviously would be a slower process than a slam-dunk from the Supreme Court, but hopefully a positive outcome," said Dan Paszkowski, president and CEO of the Canadian Vintners' Association. Paszkowski said vintners propose having each province license wineries that want to ship wines to local consumers. Couriers would make the deliveries, as currently happens with intra-provincial shipments, and wineries would remit all applicable taxes and fees to the province. Record-keeping and reporting tools today make compliance much easier than in 2002, when the post office first began accepting wine shipments, and online retailers began serving consumers. "Those things may have been a bit difficult 20 years ago; they're not difficult today," he said. Paszkowski says centralized reporting to federal tax authorities might also be possible for interprovincial movement of liquor, further streamlining the process. The Supreme Court's decision means business as usual for wineries, with some, like Haywire Winery in Summer- land, pledging to continue shipping wine to whoever orders it, regardless of location. — Peter Mitham The real target of the judgment wasn't the liquor industry at all, but a growing feud over the $6 billion pipeline project.