Yesterday the opposition Wildrose Party (not to be confused with Calgary’s Wild Rose Brewing) in Alberta released a policy plan (read here) around the beer industry. It is a response to the NDP government’s recent series of announcements (read here for background). They call it their “6-Pack Plan for Alberta Beer Producers and Consumers”.
I was sincerely interested in what the Official Opposition’s take on this might be. They have been strangely silent in recent weeks on the matter. So, I went to read the plan to work out what it might mean for beer in the province.
Except there is no plan. Not even close.
It consists of six vague bullet points (even the “read the full plan” link). I will quote the whole thing (it doesn’t take long):
- Improve Free Trade: Promote inter-Canadian free trade and fight unfair trade barriers faced by Alberta brewers in other markets;
- Lower Beer Taxes: Reverse beer tax increases imposed by the NDP government;
- Encourage Growth: Support new breweries and encourage expansion of existing ones by ending minimum capacity regulations and retroactive markup rates for small and medium-sized breweries;
- Protect Consumers: Maintain our open access approach that ensures Alberta consumers have better access to the beer of their choice than Canadians in any other province;
- Fight Protectionism: Make the staff who are studying the trade barriers we are lobbying to remove available to brewers to help navigate the obstacles and red tape in other provinces; and,
- Stabilize Business: Put in place a clear, predictable regulatory and tax regime for brewers that is consistent with our trade agreements and the Canadian constitution.
Even though a piece of me thinks that responding to this piece of media puffery is giving it too much credit, allow me to make a few points about how the plan is not a plan.
Let me start with the easy stuff. First, the level of vague generality is laughable. Most of the bullets are rhetoric with not a substantive policy plank to be found. Numbers 1 and 5 are basically the same point. And number 6 is platitude that offers nothing of substance.
Numbers 2 and 4 essentially amount to returning Alberta to the pre-election status quo. Open borders with a mark-up regime that provides a lower mark-up to every small and medium brewery on the planet. How well did that work for Alberta breweries?
The Wildrose nod to Alberta brewers is found in number 3 – except that is addressing issues that were solved in 2013!! They seem to proclaiming themselves saviours of problems solved THREE YEARS AGO!! (Note to Wildrose MLAs: there is neither a minimum production capacity nor a retroactive mark-up increase anymore. You can thank Alison Redford for that.)
Sure, they also talk about defending Alberta breweries by fighting against inter-provincial barriers. That point I can get on board with. But what are you going to do? What steps are you going to take to bring down decades-old laws that restrict imports? Promises like that are easy. How are you going to actually persuade other provinces to change their rules to let Alberta beer into their stores? A one-page glossy isn’t good enough for what is a complex inter-provincial trade issue. Besides, what do you do in the meantime, while small Alberta breweries face the full onslaught of international competition (due to your policy of returning to the previous regime’s approach)?
There are legitimate complaints about the new Alberta government policy around beer. Small western Canadian breweries have a legitimate beef, as do many importers who have made their livelihood bringing good beer into the province. There is space to have a legitimate policy debate around this issue. But the policy announcement today doesn’t does none of these things.
All this “policy” announcement demonstrates is that the Wildrose Party understands nothing about the nature of the beer industry in Canada. Their “solutions” are essentially the previous status quo, which mired Alberta in the back of the pack in terms of local craft beer. It might satisfy their friends in the arch conservative Fraser Institute and Canadian Constitution Foundation (who are supporting a trade complaint against Alberta’s beer mark-up policy), but their position has no connection at all to the realities of trying to brew and sell beer in Alberta.
Sure, in their press release they offer faint, passing words of support for Alberta’s burgeoning craft breweries, but somehow you get the sense that when push comes to shove, Brian Jean and Derek Fildebrandt will fall over pretty fast. I would have had more time for their press release had they admitted honestly that they are siding with imported beer over Alberta beer (a perfectly fair position to take, by the way). Their attempt to have it both ways, however, falls flat on its face.
At the end of the day, their announcement is mostly just embarrassing. There is no excuse to demonstrate this degree of ignorance over a public policy issue – even on a topic as narrow as beer. With a few hours work their researchers should have been able to at least get them up to speed on what the rules actually are. (Hell, they could have called me and I would have filled them in within a half hour!)
Their six-pack of policies prove instead to be a case of mistreated empties. But to satisfy the metaphor, allow me to offer a six-pack of adjectives to describe it: vacuous, contradictory, out-of-date, vague, ill-informed, and – mostly – embarrassing.
Personally, I expect more from Her Majesty’s Official Opposition.
[Edited Sept 8, 10:45 to clarify the role of the Constitution Foundation in the trade complaint]
September 7, 2016 at 9:47 AM
I have to admit that I voted Wildrose, once. I consider myself a conservative, at least fiscally, however I have seen nothing from Fildebrandt that demonstrates that party has a clue on how to fiscally manage a province, or form substantial initiatives.
So I’ll love me some NDP and hope they can come up with a solution that protects our local Alberta craft breweries while giving us the freedom of choice we enjoy.
Cheers,
Craig
September 7, 2016 at 9:49 AM
Yeah, they had me at “No more minimum productions requirements!”
Wow.
How about this – Alberta will give the same mark-up treatment to beers from provinces that give Alberta Beers exactly equal treatment as their own local breweries.
September 7, 2016 at 10:42 AM
This reads like every policy on their website. As official opposition, I’ve yet to see even a shadow budget. Maybe they didn’t put on website? They seem lazy, mouth breathers in general. Or maybe they just want to keep things simple for their “simple” base of supporters.
September 7, 2016 at 11:03 AM
Jude, I approved your comment, but would like to highlight that on this site I try hard to keep the tone of debate respectful. In future try to avoid personal insults.
September 12, 2016 at 9:17 AM
You say: “on this site I try hard to keep the tone of debate respectful. In future try to avoid personal insults.”
If that is really your position, then post a warning that they will be deleted and delete them. I like your concept – stick to the issues. I enjoy reading an informed debate on an issue but get very weary when I have to wade through posts of people who have nothing to say except to tear down the views of others or take cheap shots at the political parties they don’t support.
September 12, 2016 at 10:33 AM
I almost did delete that comment, and have refused to publish inappropriate comments in the past. This one was verge. I think I opted to let it slide with a warning as it was directed at a political party rather than a person, but I am open to hearing that maybe I was too lenient. I do work hard to keep the tone here respectful. Thanks for noticing.
September 7, 2016 at 11:20 AM
Brian Jean sets low standards for himself and continuously fails to achieve them.
September 7, 2016 at 12:01 PM
This is just another example of how the opposition is truly not being an effective opposition.
They have mastered the “but the NDP are doing everything wrong” cry, but they have yet to step up, and say “this is what we would do differently, here is the budget for it, this is how much it would cost, this is how much the taxpayer would be responsible for, and this is how it would improve education / healthcare / infrastructure / business competitiveness.”
They continue to put out vague reports with no substance.
They provide nothing tangible for plans and figures.
They need to actually step up and provide something of substance.
September 7, 2016 at 5:57 PM
I am a craft beer, and large brewery beer drinker (not that I drink much). The tarfiffs the NDP has put on ALL beer, including small local brewers, will only serve to hurt the industry. Also, if beer sales are down, so are the taxes collected for the product. Meanwhile, the Notley government hints at more taxes. Pssst….Ms. Notley, if you allow beer sales to be as they were, you will collect those taxes, and not need others. Simple, isn’t it?
September 7, 2016 at 7:46 PM
Jim, I appreciate your point and your perspective is valid. However, there is no evidence yet of what you predict. Because of the grant (like or hate it), Alberta beer has been sheltered from the increase, giving them a price advantage. There is no evidence beer sales are down. We will see in a few months (and I will acknowledge it if it happens), but right now that is just speculation.
Thanks for commenting.
September 8, 2016 at 2:17 PM
yes, so simple and so smart.
September 8, 2016 at 2:15 PM
The NDP policy is ridiculous. Tax and rebate, how many people do they have to hire for this program? My husband is a rep for a BC small brewery. He knows what is going on, it has impacted them, prices are going way up for consumers and and choice will eventually go down ( his brewer is going to have to pull out of Alberta if this is not reversed ) This new tax did not affect the big guys like Molson and Labatt, but they too have raised their prices, because they can. Also Alberta brewers who get the rebate can also raise their prices a bit, still being competitive, but this is like double dipping. We should be encouraging free trade between provinces. The consumer should come FIRST!!! I will be voting Wildrose.
September 9, 2016 at 7:39 AM
Maybe your husband and the brewery he works for should be advocating for BC to remove their restrictions of Alberta beers into that province, that existed for decades before the NDP finally started to fight fire with fire, no? I agree, we should get rid of protectionism across the country, but just because Alberta was the last province on board with being protectionist, why are they being the ones picked on when others have done it for years without any consequences?
September 9, 2016 at 8:26 AM
This is the first time in years (decades?) I have actually seen beer prices for local craft brew come down at the liquor stores. Obviously they are doing something right!
September 9, 2016 at 12:29 PM
And yet the stuff I would prefer to drink has gotten more expensive. Go figure!
September 15, 2016 at 1:03 PM
As a national agent who sells in virtually every Province, I’d like to ask you and Alberta breweries, what is REALLY preventing them from selling in SK or BC?
I am frankly growing tired of hearing people say “The Boards there (BC and SK)won’t list our stuff”….that is complete and utter nonsense. I could list, sell, and promote any one of our Alberta breweries tomorrow in either Province if I so chose to. Now let’s move on from at least that argument once and for all.
September 15, 2016 at 3:12 PM
Hi Steve. Thanks for commenting. Your perspective is valuable.
I will let the brewers speak for themselves about their experiences. What I will say is that I have heard examples of Alberta breweries being denied entry. I cannot say why. One of the issues is that the decision is left to civil servants who can base their decision however they like. Maybe they think Alberta beer doesn’t have enough cache and won’t “sell”. I don’t know.
All I am trying to do is highlight the factual differences between Alberta’s system and other provinces. As an importer, I suspect you know it is easier to get into Alberta than other provinces. That doesn’t make those provinces impossible – as you say – but the systems are not equal. That is an important point to raise in this debate.
I encourage you to flesh out your experiences for onbeer readers. Thanks for commenting.
September 15, 2016 at 3:30 PM
Steve,
The more flesh the better 🙂
Perhaps it would help to reference another well written article by the author, prior to commenting further.
https://onbeer.org/2016/07/some-info-on-the-saskatchewan-beer-regime/
I’ve spoken to at least 2 other brewers in Alberta. One was denied. One was not. Other’s haven’t bothered. The second one ran into the other issue – no one in the system would order enough beer to make it worthwhile. Maybe because not everyone has the licenses allowing them to order what they want.
I certainly don’t think it is as easy as you imply, Steve, but maybe the small craft breweries just can’t afford to help the process along as smoothly.
Cheers,
Craig