Cannery Brewing, Penticton, BC
February 13, 2015
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Good morning.
Thank you for that kind introduction and for inviting me to join you today.
It's a pleasure to be here.
Canada produces about 2.1 billion litres of beer each year - and about 10 million Canadians drink it. This makes beer the number one alcoholic beverage in Canada for both production and consumption.
Quebec, Ontario, and B.C. are the provinces with the highest number of federally licensed breweries today - but there were commercial breweries in Canada long before Confederation. As you know, it's one of our oldest industries.
Beer production in communities like ours, supports jobs all along the supply and distribution chain across the country.
And that chain stretches a long way - from the farms where barley and hops are grown … to the transportation and warehousing industries … to the bars, restaurants, sports stadiums, and liquor stores where beer is sold from coast to coast to coast.
The economic footprint of beer is huge. According to the Conference Board of Canada, the "beer economy" supports 1 out of every 100 jobs in Canada and generates about $5.8 billion in government revenues each year.
This money helps fund schools, hospitals, social services and public infrastructure. So when you get right down to it, all Canadians benefit from the economic impact of beer.
Today, I'm here with some good news for Canada's beer makers - and drinkers!
I am pleased to announce that our Government changed the law that provided a federal barrier to Canadians moving beer and spirits across provincial borders for personal consumption.
The federal statute that controls and restricts the movement of liquor from one province to another, and its importation into Canada, is called the Importation of Intoxicating Liquors Act.
Many people think of this law as a relic of Prohibition days - it is! It was passed in 1928 at the request of the provinces when they repealed their liquor prohibition laws.
Until recently, the Importation of Intoxicating Liquors Act prohibited individuals from taking wine, beer, or spirits across provincial boundaries. Instead, it required that the movement or importation of these products be made by a provincial liquor authority.
Almost three years ago, our Government removed the federal barrier on transporting wine from one province to another for personal consumption.
I must give credit to my friend and colleague, and your Member of Parliament, Dan Albas for his leadership on having Bill C-311 "An Act to amend the Importation of intoxicating liquors Act" amended by Parliament.
On June 28, 2012 Dan became one of the first MPs in recent history to have a Private Members Bill become law with the unanimous support of both the House of Commons and the Canadian Senate.
That was good news for Canada's growing wine industry. In fact, June 28 of each year is now celebrated by wine producers and lovers as `Canadian Wine Day`.
Persistent barriers to internal trade, including regulatory differences, inconsistent standards, and restrictions on the free movement of people, goods and services, fragment our economy and put Canadian firms at a disadvantage. The result is a weaker Canadian economy, lost jobs, and a less united Canada.
Our Government has taken the next logical step in modernizing our laws. We have removed the red tape, so Canadians can move beer and spirits from one province to another for personal consumption.
Businesses, quite rightly, protested the outdated provisions of these Prohibition-era laws went against the spirit of free trade. They pointed out that thousands of direct and indirect jobs were at stake. Our Government agreed.
Many Canadian-made craft beers are sold only to local connoisseurs and are not carried in liquor, beer or wine stores in other regions of Canada.
With this amendment, Canadians can more readily enjoy premium craft beers and local spirits no matter where they live.
While we have removed this federal barrier to interprovincial trade, I must note that provincial authority remains.
In other words, how much alcohol a consumer can import, buy or possess, and how they get it - whether in person, by phone, or on the Internet - remains a provincial responsibility. Similarly, communities that set up dry zones will not be affected by the recent amendment.
The Province of British Columbia has been the first province to modernize its provincial regulations. I applaud the BC Government for their leadership, and call on other provincial and territorial governments to follow suit.
B.C. residents can now import wine for personal consumption from elsewhere in Canada. I encourage my provincial counterparts to bring forth similar regulations for beer and spirits, now that federal barriers have been lifted.
The good news is that updating the Importation of Intoxicating Liquors Act has the potential to create a whole new market for hundreds of local microbreweries and small distilleries all across the country.
By easing federal restrictions against transporting beer and spirits across provincial borders, we are supporting a growing industry that creates thousands of spin-off jobs - a priority for our Government.
Under the leadership of Prime Minister Harper, we are committed to keeping taxes low, helping businesses and entrepreneurs succeed, and making sure that Canada remains one of the best places in the world to invest.
Today, the overall federal tax burden is at its lowest level in over 50 years. This is an unprecedented achievement.
But we won't stop there.
We remain focused on helping hard-working Canadians prosper.
Every Canadian family with children will benefit from our new tax relief and benefit package - the Family Tax Cuts and Benefits Plan.
On average, $1,140 will return to the pockets of families with children through this initiative. Let me take a minute to explain.
The Family Tax Cut provides tax relief of up to $2,000 for couples with children under the age of 18, starting with the 2014 tax year.
We are increasing the Universal Child Care Benefit (UCCB) from $100 to $160 per month for children under the age of 6 … and providing $60 a month for each child between the ages of 6 and 17. Both of these measures are effective as of January 1, 2015, with first payments being administered in July.
Our Government has doubled the Child Fitness Tax Credit, from $500 to $1000 per child per year. We are also increasing the maximum Child Care Expense Deduction amount by $1,000, starting in the 2015 tax year.
In addition to introducing numerous tax relief measures to support Canadian families, we continue to support small businesses, including craft microbreweries just like Cannery Brewing.
The amendment to the Importation of intoxicating Liquors Act - the reason that we are here today - is a positive step towards breaking down barriers, reducing red tape, and creating new economic opportunities for small businesses.
Canada is a trading nation. We have more than 40 trade agreements with other countries around the world. It only makes sense to foster trade within our borders as well.
In 2017, we will celebrate Canada's 150th anniversary as a country. We owe it to Canadians to take action by breaking down the barriers to building a modern economy. Together we can achieve our common goal of one nation, one national economy.
Clearly, there are plenty of reasons to celebrate today's announcement.
Cheers!
