BC Hospitality Industry Calls for Revised and Focused Covid Response Measures

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Written by Mark Hicken Mark Hicken

Category: Latest News Latest News

Published: 12 September 2020 12 September 2020

In an open letter to the BC Provincial Health Officer and the BC Government, the members of the BC Technical Advisory Panel on Liquor Policy ("BTAP" - a group appointed by the BC government to advise on issues related to the liquor industry) have asked for reconsideration and modification of recent orders made by the Health Officer related to the Covid19 pandemic.

On September 8th, Dr. Bonnie Henry, the Health Officer, ordered all nightclubs and standalone banquet halls to close, ordered music volumes to be reduced, and ordered that all liquor service in all licensees throughout the province must end at 10 pm. BTAP is concerned about both the policy rationale and the devastating economic consequences of these orders, and are particularly concerned about these issues in relation to ending liquor service at 10 PM.

Specifically, BTAP has requested and suggested that government consider the following:

• Extend the end of liquor service from 10 PM to midnight
• Greater enforcement of non-compliant venues and customers, targeting the problem areas directly rather than unfairly affecting good operators
• Provide transparent timelines and/or public health targets so businesses can gauge the long-term effect of any restrictions

Download a copy of the letter.

Full disclosure: I formerly chaired the BTAP Panel and am still a member of the Panel.

Revised Health Order Permits Standing in Tasting Rooms

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Written by Mark Hicken Mark Hicken

Category: Latest News Latest News

Published: 01 August 2020 01 August 2020

A revised Public Health Order was posted this morning (effective yesterday) that fixes the language in the earlier order that prevented customers from standing in a tasting room. The new Order now clearly states that licencees who are manufacturers are not covered by the requirement that all customers must have assigned seats. As a result, customers may stand at a tasting bar in a winery or other manufacturer so long as they comply with the other distancing rules. This is obviously a welcome clarification for wineries during the busy tourist season.

Federal Excise Tax Exemption & Certain Provincial Preferences for Canadian Wine To Be Eliminated

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Written by Mark Hicken Mark Hicken

Category: Latest News Latest News

Published: 27 July 2020 27 July 2020

A press release from Global Affairs Canada issued today (Summary of Understanding Between Australia and Canada on Wine) indicates that the federal excise tax exemption for Canadian wine will be eliminated within 2 years. This action comes in partial settlement of a trade dispute launched by Australia against Canada at the WTO which alleged that various Canadian policies and practices were discriminatory against Australian wine and violated GATT rules. 

The practical result of this will be that all Canadian wine (including BC wine) will eventually become subject to federal excise tax (currently levied at a rate of 66.5 cents per litre or just under 50 cents per 750 ml bottle). Prior to this settlement, 100% Canadian wines have been exempt from this tax. The elimination of the tax exemption can reasonably be expected to increase the price of Canadian wines in the marketplace for the end-consumer once it is implemented (i.e. within 2 years).

The progress of this WTO dispute DS537 can be tracked here: Canada - Measures Governing the Sale of Wine. As can be seen here, the WTO Panel is scheduled to issue its Final Report on the dispute in the middle of August. However, this settlement will resolve part of the complaint. It should be noted that the settlement states that it does not "alter Australia's claims with respect to other measures covered by DS537" (i.e. the other matters covered by the dispute). 

In addition, and as a related part of the settlement, it appears that Nova Scotia and Ontario have also agreed to change certain preferential provincial practices over the next few years such that Australian and Canadian wines will eventually receive similar tax and distribution treatment. Nova Scotia has agreed to eliminate its preferential liquor markup policies for local wines. Ontario has agreed to eliminate preferential rules in both its grocery channel and taxation treatment of Australian wine. Media coverage from Australia also discusses the settlement: Winemakers Cheer Wins Over Canada's Trade Barriers.

 

Revised BC Health Order Affects Some Winery Operations

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Written by Mark Hicken Mark Hicken

Category: Latest News Latest News

Published: 24 July 2020 24 July 2020

A revised BC Public Health Order was posted late yesterday which applies to all licensed premises that serve liquor (and which is effective yesterday, July 23 2020). While the bulk of the order is similar to the previous one, it does make some significant changes which may affect certain winery operations:

• Updated August 1, 2020. This part has been revised effective July 31st. Manufacturer licensees are now exempt from the requirement that all customers must be seated. Updated July 28, 2020. Paragraphs 3 and 10 of the Health Order state that all patrons must have a seat and that following any service to a patron at a manufacturer tasting bar, the patron must return "directly" to an assigned seat. As such, the text of the Order does not permit patrons to stand at a tasting bar to consume their samples/drinks. Rather, a plain reading of the sections says that they can't do so (see paragraph 3). While I have been told that there may have been an "intention" to allow patrons to stand at a manufacturer tasting bar so long as physical distancing is maintained, the Health Order does not allow this. Unless the Health Order is modified, it is my view that manufacturers should require all patrons to have a seat (a stool would be ok too) as Health Officers or Liquor Inspectors may expect all patrons to be seated based on the text of the Order. The rules apply regardless of tasting room setup (i.e. whether inside or outside). 
• Group size is still limited to 6 persons. If larger groups arrive, they must be seated separately with mandated physical distancing. Tables cannot be consolidated. 
• There must be sufficient staff to monitor and enforce the physical distancing and seating rules. 
• No singing or dancing.
• There are detailed rules regarding the holding of events including the previous maximum of 50 people. Events can only be held between noon and 11 pm. Maximum of two events per day.
• If live music is part of an event, there must be a physical barrier to separate performers from the audience and a distance of at least 3 m.

Full order is here: Order of the Public Health Officer: Food Service Establishments, Liquor Services & Events