CROWN BENCH ESTATESPremier, as you are no doubt aware the economic situation for most growers and wineries is dire. With inadequate and costly financing nand very limited access to market, a vast majority of this industry is poised for failure. We are reliably informed that under your good offices that the Grape Growers Marketing Board (GGMB) and Wine Council of Ontario (WCO) are undertaking negotiation to restructure our industry.
While I am a member of both organizations, neither they nor the government structures that have been put in place (not withstanding clause of the Wine Content Act and LCBO monopoly) represents an ideal modality for small Ontario Wineries. In fact, sad to say, the existing structures mitigate against real Ontario wine producers, and any compromised solutions between GGMB, WCO and government, is bound to fail as anicio precisely because of the vested interests, and the resultant culture of entitlement of the three negitiating entities.
In the first place, may I suggest a proper restructuring would have to include other alcohol beverage producers as well as other grape and fruit processors. In the second place, the government at the negotion table would have to implement an arm,s length stance otherwise from our perspective the triumverate of LCBO< WCO and GGMB amounts to three foxes in the henhouse negotiating supper.
To the point, please cast the consultation net wider to include real Ontario Wineries and please also not that the existing culture of entitlement has brought us to this point. May I also at this point suggest a non-compromised solution;
1. Divest the LCBO of its retail function, selling LCBO would yield a handsome profit for government. LCBO would keep its administrative functions.
2. Allow any entity, foreign or domestic to open any number of retail outlets under LCBO licence.
3. (Sunset two years) the so called pre 93 licenced wineries to import. Thereafter either adhere to the Wine Contect Act or allow any entity importation rights under a proper tariff system. Resultant wines to be labelled under country of origin designation.
4. Extend the tax structure granted under VQA to all 100% Ontario wines, grape and other.
5. Implement a proper appelation system, not merely an appelation of origin.
6. Implement a grape pricing system administerd by GGMB, that addresses a) cropping level, b) sugar and acid levels, c) other papameters of quality. Along with the above, contracting wineries would be obliged to pay for, among others, crop reduction, leaf removal, etc. at the time the work was performed.
7. Establish a fund which would lend capital, guaranteed by government at prefered rates to both growers and wineries for ten year transition period.
To conclude Premier, the situation on the ground is desperate, the confluence of entrenched unequal rights, world econimic situation, and weather have left a formative industry on the ropes.
While hard cases make bad laws, I appreciate your efforts to arrive at an economic viable solution for growers and wineries.
Failing which, most wineries and growers will be facing bankrupsy and foreclosure, with only the large wineries left standing, due in large part to the compromised system we now have in place.
Sincerely yours,
Peter S. Kocsis
Crown Bench Estates Winery.
