44th Parl. 1st Sess.
March 22, 2023 01:00PM
- Mar/22/23 2:19:25 p.m.
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Mr. Speaker, the Alouettes have finally found a new owner. Montreal's team has been purchased by none other than Pierre Karl Péladeau, making him the first francophone owner since Léo Dandurand, the man who founded the team in 1946.
This well-known sovereignist said that buying the team was not a business transaction, but a matter of national pride. His words were deeply moving. I bet that some will even be converted. I am certain that this will be a great boon to our local talent. Our teams have already reaped many honours at the college and university level, and more and more players, coaches and managers from Quebec are joining the professional ranks.
In Pierre Karl Péladeau, the Alouettes have found a terrific quarterback. I am even convinced that he will not hesitate to go out onto the field himself to finally bring the Grey Cup back to Quebec. After the highs of the 1970s and 2000s, we now feel that our Alouettes are ready to soar again.
It looks like the third down is the charm for Montreal's football team.
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- Mar/22/23 8:10:04 p.m.
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Madam Speaker, this also affects the survival of our microbreweries. It is important to people living in Quebec as it affects the prosperity of our towns and villages. What are the members' thoughts on the survival of these microbreweries?
In the context of inflation, providing direct assistance might be more impactful than cutting the excise tax, which would do very little.
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- Mar/22/23 8:59:42 p.m.
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Madam Speaker, as a proud resident of Abitibi-Témiscamingue, I can say that microbreweries are at the heart of our identity.
Whether we choose the Foublonne or Brother John from Trèfle Noir in Rouyn‑Noranda, the stout from Pierre de fée in La Sarre, the Blonde du Frère Moffett from Barbe Broue, in Ville‑Marie, and in Témiscamingue, the Tête de Pioche from the Prospecteur in Val‑d'Or, or simply a beer from a Quebec microbrewery we can pick up at the Chez Gibb cornerstore, there is always a way to have a drink from Abitibi‑Témiscamingue. We even have very good wines produced by the Domaine des Duc. The member for Joliette has even tasted it.
The Conservatives' motion essentially replicates the recommendation in the pre-budget consultation report of the Standing Committee on Finance that called on the government to freeze the federal excise tax on beer, spirits and wine at the 2022 rates for the 2023 and 2024 fiscal years until inflation returns to the Bank of Canada's target range, somewhere between 1% and 3%.
The excise tax on alcohol is a fixed amount by volume. Traditionally, that amount has been occasionally reviewed in a budget implementation bill. Since 2017, the law has set out an automatic escalator formula based on the consumer price index. As a result, the excise tax will go up 6.3%, reflecting the high level of inflation we experienced in 2022.
We will therefore be supporting the Conservative motion because, in the midst of this inflationary surge, hiking a consumption tax that would further increase prices would be ill-advised.
That said, admittedly, the impact of the alcohol excise duty escalator on the final selling price of the product will be rather minimal. We are talking about 1¢ per can of beer.
This motion is not a real response to the inflationary pressure on food prices. Moreover, only the big brewers would truly benefit from the adoption of this motion. Regional microbreweries pay only a fraction of the excise tax and will therefore benefit much less from the tax rate freeze.
In fact, thanks to pressure from the Bloc Québécois in 2006, it is only after 75,000 hectolitres that a microbrewery pays the full tax rate. Under that amount, the cost varies between 10% and 85% of the value of the tax depending on the number of hectolitres produced.
Of the 1,200 breweries in Canada, including the more than 300 in Quebec, only 12 pay the full amount of the excise tax on the majority of their production. Most of these 12 breweries are owned by foreign multinationals.
There are other ways to help microbreweries and their brewmasters, who introduce us to new flavours. For example, the government could exempt microbreweries from paying the tax on the first 10,000 hectolitres, as recommended by the Canadian Craft Brewers Association. In fact, 80% of microbreweries produce less than 2,000 hectolitres per year.
The regulations on the excise tax and its escalator based on capacity made it possible for many craft microbreweries to expand, but the 75,000-hectolitre threshold is now a barrier to their growth, according to the Canadian Craft Brewers Association, which I salute. Another solution that would help our local businesses compete against the big breweries would be to raise the threshold while keeping the rate brackets.
One of the positive aspects of the 2022 spring budget was the excise tax exemption for producers of cider and mead, such as Mieillerie de la Grande Ourse de Saint‑Marc‑de‑Figuery. I salute the member for Joliette for waging and winning this battle. His example should be followed and should provide further inspiration to the government today.
However, the government still has a very restrictive definition of what constitutes cider and mead. Producers who flavour their products with berries or aromatics continue to pay the tax. The Bloc Québécois hopes that all of this will be resolved in the upcoming budget.
We also hope that the excise tax exemption will apply to producers who make wine from other types of fruit, such as blueberries, which promote our region.
In Val‑d'Or, in the riding of my neighbour from Abitibi—Baie-James—Nunavik—Eeyou, there is a a company that specializes in producing distilled beverages. Spiritueux Alpha Tango produces Bravo Charlie and Echo Foxtrot gin, Valentine amaretto, Mission Kosmos vodka and even Mayday liqueur, which is made of black spruce and cinnamon. I want to say that Quebec's microdistilleries are on an impossible mission to the cosmos and that their mayday signal is not receiving an answer from the government. That is a problem. Even their gin is made using cattails. There is something interesting and inspiring about that.
With the excise tax at over $12 per litre of alcohol, a bottle of Alpha Tango gin will cost 25¢ more. That is not a catastrophic increase, but it is in addition to the general increase in prices. As the saying goes, it takes four quarters to make dollar.
The Bloc Québécois would have proposed a different solution than the Conservatives. We need to duplicate the microbrewery model for microdistilleries and impose only a fraction of the tax that is charged to industry giants. That way, a bottle of Grande dérive, from Miellerie de la Grande Ourse, would cost $3 less per bottle instead of the meagre 25¢ being discussed today. This would apply to all those small, local producers who give us a taste of their regional expertise.
I sincerely hope that the government will listen to this suggestion. It would allow our flavour artisans to benefit from a more targeted measure. Nevertheless, I repeat, we will support the Conservative motion because its merit lies in the message that the House is sending to the government.
That being said, the solution to inflation is not simply a measure like this. Microbreweries in Abitibi-Témiscamingue have a long list of problems. In early February, Le Trèfle Noir, a source of pride in Rouyn Noranda, sold its recipes to Lagabière, a microbrewery in Saint-Jean-sur-Richelieu. Owner Alexandre Groulx, whom I commend, said that inflation, the pandemic and the labour shortage led him to sell part of his business.
Our entrepreneurs need more than a band-aid solution. They need concrete solutions. We must ensure that our farmers benefit from measures to help them produce, in particular by creating a special emergency account similar to what was done during the pandemic, which would help ensure they are supported when they need it. There is a significant cash flow crisis within the farming community. Obviously, these are the raw materials used by our microbreweries and microdistilleries. We also need to address the labour shortage in all our regions and the housing crisis.
These two problems are hindering the economic development of Abitibi—Témiscamingue. Some measures do exist, including a tax credit for returning recent graduates, a tax credit for immigrants who choose the regions of Quebec, tax incentives for experienced workers, increased transfers for the creation of social and community housing, and so on. The Bloc Québécois has solutions. We need the government to listen. With the budget only one week away, I hope it is listening.
In conclusion, I invite all parliamentarians to support local microbreweries and microdistilleries, especially those in Abitibi—Témiscamingue. They will see that our products are full of local flavours, and I am sure they will become their favourites. Above all, they will have to enjoy them in moderation.
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- Mar/22/23 9:08:36 p.m.
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Madam Speaker, I thank my colleague for his interest in this issue. I recently met Jean‑François Nellis, the owner of Pit Caribou since 2019. Pit Caribou is one of the most important microbreweries in the Gaspé and a member of the Association des microbrasseries du Québec.
One of the things we talked about is the notion of the space in which microbreweries operate, which is of vital importance. The microbrewery model brings life and vigour to an area. It is good for the tourism industry and it is obviously good for the local economy.
People say that microbreweries create jobs and contribute to the social fabric. Microbreweries are often located in the regions. One-third of microbreweries are found in towns with a population of less than 10,000. That is really interesting. When looking for ways to ensure that our economy is not centred just in Toronto or on oil from western Canada, we can really see a solution in microbreweries.
To answer my colleague's question, one of the fundamental issues is the notion of liquidity. Companies need to have liquidity and the excise tax has a direct impact on that. Cutting the excise tax will help our microbreweries improve their ability to invest, develop new products and innovate.
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- Mar/22/23 9:11:00 p.m.
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Madam Speaker, I thank my colleague from Cariboo—Prince George for the question. I am pleased to see him here in person in the House.
Indeed, these discussions are under way. It is not easy for businesses to survive, especially SMEs and especially because of COVID‑19. That is what the owner of the Trèfle Noir microbrewery said.
My colleague from Joliette managed to get the excise tax on spirits reduced. David Ouellet, from Miellerie de la Grande Ourse developed a gin and a mead. His products enjoy great commercial success, so much so that he has a hard time producing enough. By lowering this tax, we encourage creation. I will say that again because it is a clear example. This lends itself to local pride and a sense of belonging. We need to listen to that and give businesses some oxygen. In an inflationary context, this is something that is essential.
These producers will return this to us one-hundred-fold because this promotes our regions and that is invaluable. Obviously, this creates jobs and we cannot pass on that.
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- Mar/22/23 10:33:21 p.m.
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Mr. Speaker, I would like to know what my colleague from Winnipeg North thinks of the lobbying of interest groups that want to limit alcohol consumption to two drinks per week as recommended by their research. This could have consequences for the profitability of many of the regional microbreweries and craft distilleries in our regions. I want to salute Éduc'alcool, which conducted studies and has promoted responsible consumption habits for Quebeckers consisting of two drinks a day for women and three for men, and 10 drinks per week for women and 15 for men. This approach has been adopted in Quebec and keeps our local economy going.
Will the government respect the Éduc'alcool guidelines or will it adopt those of the lobbies that essentially encourage prohibition?
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