Senator Quinn: Senator Gold, while I understand that you’re saying that it’s not a large impact, I’m going to respectfully disagree. In some cases, it’s a seven-figure number, and that would be in a medium-sized brewery, such as Moosehead Breweries in Saint John. For certainty and as part of their business planning, if the government is unable to respond in a favourable way, would it not be reasonable to at least convey my concerns to the Minister of Finance that the increase of the alcohol excise tax tied to the inflationary rate will have an unintended consequence that will seriously impact the competitiveness of Canadian businesses and lead to job losses throughout the supply chain?

Hon. Jim Quinn: My question is for Senator Gold. Senator Gold, in 2017, Parliament passed the escalator tax on alcohol products, marking the first time parliamentarians do not have a vote on the annual increase of the excise tax on beer, wine and spirits. Instead, the increase is tied to inflation effective April 1 of every year.

Senator Gold, I applaud the federal government’s initiatives to ease the significant inflationary pressures on Canadians and Canadian businesses. However, with inflation likely being in excess of an average of at least 6%, if not more, the automatic escalator tax will seriously impact the competitiveness of Canadian business. In 2017, I don’t believe that departmental officials and the government expected or planned for the effects of inflation on this escalator clause. This tax ripple through the supply chain will lead to jobs at risk, which I’m also certain will have been an unintended consequence. Why not place a 2% floor on this tax while accruing regional revenue to the federal government, and while giving government initiatives an opportunity to lower inflation without adding fuel to the inflationary fire?

And will the government commit to not imposing an automatic escalator excise tax for 2023?

Senator Quinn: Senator, I applaud the initiative you are taking here, but we now have a warning on alcohol products regarding potential defects during pregnancies. You have listed many things that you would see on the bottle, but the main message, as I take it, is the correlation between alcohol consumption and the potential to promote cancer within a person.

Is there a way to consolidate it and bring it down, as is indicated on cigarette packaging? As I understand it, it says “Smoking can cause cancer.”

What I hear is a lengthy description to go on a label. Would it not be better to consolidate and get that main message through?

Senator Brazeau: Thank you, senator, for the question. As I said, the crux of the bill is not to suggest, but, because of the science and research, to say that even drinking minimally can cause cancer. It is that simple.

Obviously, this bill needs to get to committee so we can have the real experts debating, discussing and recommending what should be done in terms of the actual labelling, but the message is drinking alcohol causes cancers.

(On motion of Senator Martin, debate adjourned.)

On the Order:

Resuming debate on the motion of the Honourable Senator Dalphond, seconded by the Honourable Senator Harder, P.C., for the second reading of Bill C-233, An Act to amend the Criminal Code and the Judges Act (violence against an intimate partner).

Senator Quinn: It’s interesting that the people we have been speaking with from the industry are reporting serious concerns with respect to loss of jobs, not only in their sector but also in sectors that use alcohol products, such as the tourism industry, bars, restaurants et cetera, and that the risk of job losses in the current environment of high interest rates is a real probability. If the government does not introduce a bill to repeal the escalator clause, could you support the Senate introducing a Senate public bill to repeal the excise tax clause and return to the annual raising of excise tax, if needed? After all, millions of Canadians like to enjoy a glass of wine or a cold beer but, as is, this excise tax will be putting it further out of reach for the average Canadian.