WHEREAS wineries in Ontario that are not part of the Vintner Quality Alliance (VQA) and sell 100% Ontario wine directly to a licensee (e.g., restaurant) are subject to a mark-up and wine levy imposed by the Liquor Control Board of Ontario (LCBO), which is not applied to sales by VQA wineries to licensees; and
WHEREAS the direct delivery of 100% Ontario non-VQA wine to a licensee is an important part of the local agri-tourism wine industry, providing a cost-effective and efficient way for Ontario wineries to sell their products; and
WHEREAS the LCBO mark-up and wine levy imposed on the direct delivery of 100% Ontario non-VQA wine to a licensee creates unnecessary barriers and costs for non-VQA Ontario wineries; and
WHEREAS the LCBO mark-up and wine levy have created unintended consequences such as limiting development of local agri-tourism and rural diversification, adversely impacting the sustainability of local artisan wineries, and the development of rural/village economies; and
WHEREAS the LCBO mark-up and levy is having a negative impact on over 30 local non-VQA wineries in Ontario, including those in rural Ottawa areas such as Navan and Richmond; and
WHEREAS the elimination of the LCBO mark-up and wine levy on direct delivery of 100% Ontario non-VQA wine to a licensee would provide a level playing field for wineries producing 100% Ontario wine and support the growth of the rural artisan wine industry; and
THEREFORE BE IT RESOLVED THAT the Mayor, on behalf of Council, write to Ontario’s Minister of Finance, Minister of Red Tape Reduction, Minister of Agriculture, Food, and Rural Affairs, and Minister of Tourism, Culture and Sport, and Minister of Economic Development, Job Creation and Trade, supporting the elimination of the LCBO mark-up and wine levy on direct delivery of 100% Ontario non-VQA wine to a licensee; and
BE IT FURTHER RESOLVED THAT the Mayor provide any updates to City Council on any progress or responses received regarding this matter.