The federal government is setting up a subsidy program for the wine industry which, Ottawa assures us, is not intended to compensate for the new excise tax to which vineyards will now be subject following a defeat by Canada in a dispute with Australia at the World Trade Organization.
Posted yesterday at 11:56
“The program does not have the same criteria as the excise tax at all, not the same amount either,” argued Wednesday the Minister of Agriculture and Agri-Food, Marie-Claude Bibeau, during a a press conference in a vineyard in the Eastern Townships.
The grants, which could reach $166 million over two years, are aimed at helping “the growth and competitiveness” of the industry, she said. By way of comparison, Ottawa estimates that the excise tax could represent an amount of 135 million over two years.
“In several countries around the world, there are programs in place to support production, innovation, the fight against climate change, so this program is part of a much broader vision,” continued the minister.
Canadian wineries that produce bulk wine from fresh fruit and have a winery turnover of more than $50,000 are eligible.
The winegrowers will be able to use the funds to “get through this period which is more difficult, allow them to acquire perhaps new equipment which will help their productivity, among other things”, declared Mr.me Bibeau.
However, the minister acknowledged that the program does not require spending on specific projects. “They can really use it to consolidate their business, innovate, grow,” she said.
The past few years have been particularly difficult for Canadian winemakers. Revenues have fallen, they are suffering from supply chain problems, the vagaries of the weather and “increased competition from subsidized foreign wines”, listed Dan Paszkowski, president and general manager of Vignerons Canada.
According to Mr. Paszkowski, the new program will stimulate investment and innovation, increase demand and generate significant economic benefits for the country.
Ottawa estimates that there are about 800 wineries in Canada, with most located in British Columbia, Ontario, Quebec and Nova Scotia.