Comeau, a retired steelworker, was stopped by the\u00a0RCMP\u00a0in 2012 and fined $292.50 for violating\u00a0the New Brunswick Liquor Control Act, which sets a personal importation limit of 12 pints of\u00a0beer\u00a0or one bottle of alcohol or wine.<\/p>\n
But\u00a0Campbellton\u00a0provincial court Judge Ronald\u00a0LeBlanc\u00a0ruled in April 2016 that the liquor restriction was unconstitutional because Section\u00a0121 of the 1867 Constitution\u00a0Act says products from any province “shall\u00a0\u2026 be admitted free into each of the other provinces.”<\/p>\n
New Brunswick prosecutors are appealing LeBlanc’s decision to the Supreme Court of Canada after the province’s highest court refused to review the matter.<\/p>\n
They contend that upholding Comeau’s\u00a0acquittal would “propose an end to Canadian federalism as it was originally conceived, has politically evolved and is judicially confirmed” by the Supreme Court itself, which has\u00a0previously held Section 121 prohibits only “customs duties,” or\u00a0interprovincial\u00a0tariffs.<\/p>\n
Federal, provincial governments intervene<\/h2>\n<\/p>\n
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Gerard Comeau was all smiles on April 27, 2016, after a judge dismissed a charge against him of bringing too much alcohol into New Brunswick from Quebec, saying it violated free trade provisions in the Constitution. (Bridget Yard)<\/p>\n
At issue in the appeal is whether\u00a0Section 121 prohibits all trade barriers, whether they’re federal, provincial, tariffs or non-tariff restrictions that make importing and exporting products difficult or costly.<\/p>\n
The attorneys general of Canada, Ontario, Quebec, Newfoundland and Labrador, Alberta, Nova Scotia, Saskatchewan, British Columbia, Prince Edward Island and Northwest Territories, and the minister of justice of\u00a0Nunavut all previously filed notices of intervention\u00a0in the case.<\/p>\n
They are automatically granted the right to make submissions to the court on the constitutional issue.<\/p>\n
But the other proposed interveners have to persuade the court to accept written and oral arguments from them at the hearing, set for Dec. 5 and 6.<\/p>\n
Each contends that it has\u00a0a vested interest in the appeal and that its\u00a0perspective is different from the other parties.<\/p>\n
There is no deadline for the court to decide on the applications.<\/p>\n
Livelihood of farmers at stake<\/h2>\n<\/p>\n
![\"Milking](\"https:\/\/i.cbc.ca\/1.3981988.1487089066!\/fileImage\/httpImage\/image.jpg_gen\/derivatives\/original_620\/milking-cows.jpg\")
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The SM-5 Organizations say federal-provincial agreements for each of the supply-managed sectors weave together the legislative jurisdiction of both levels of government to ‘ensure a seamless regulatory scheme.’ (CBC)<\/p>\n
The majority of the applicants\u00a0say fewer barriers would be better for them, consumers or the country as a whole.<\/p>\n
But five national organizations that administer or support\u00a0agricultural\u00a0supply management systems, known\u00a0jointly as the SM-5 Organizations, are arguing against a loosening of restrictions.<\/p>\n
The\u00a0Dairy Farmers of Canada, Egg Farmers of Canada, Chicken Farmers of Canada, Turkey Farmers of Canada, and the Canadian Hatching Egg Producers say they have a “profound interest” in the appeal.<\/p>\n
Their supply-managed sectors are built on three pillars\u00a0\u2014 production, pricing and import controls, which they say\u00a0are designed to enable farmers to get a reasonable return while stabilizing the supply of agricultural products to Canadian consumers.<\/p>\n
Comeau’s\u00a0position “could result in the destruction of supply management \u2014\u00a0a regulatory system in place for generations, on which the livelihood of thousands of farmers across the country depends,” their application says.<\/p>\n
Small wineries, beer giants weigh in<\/h2>\n
The\u00a0industry-related applicants, however, want fewer restrictions. These groups include:<\/p>\n
- \n
- Liquidity Wines Ltd.,\u00a0Painted Rock Estate Winery Ltd.,\u00a050th\u00a0Parallel Estate Limited Partnership, Okanagan Crush Pad Winery Ltd., and Noble Ridge Vineyard and Winery Limited Partnership \u2014 all\u00a0small British\u00a0Columbia-based wineries that say they\u00a0represent the interests of a coalition of another 99 small wineries in the province.<\/li>\n
- Artisan Ales Consulting Inc.,\u00a0a Calgary-based company that purchases beer from out-of-province brewers it represents, then sells the beer to wholesale purchasers, such as restaurants and retailers.<\/li>\n
- Canadian Vintners Association, which advocates\u00a0on public policy initiatives to benefit the Canadian wine industry.<\/li>\n
- Association of Canadian Distillers, operating as Spirits Canada, a national, non-profit trade association representing Canadian manufacturers, marketers, exporters and importers of distilled spirits.<\/li>\n
- Canada’s National Brewers, advocates for Canada’s largest and oldest brewers, Molson and Labatt, at the provincial, federal and international levels.<\/li>\n
- Alberta Small Brewers Association, a not-for-profit organization that represents more than 50 small and independent\u00a0brewers in the province.<\/li>\n<\/ul>\n
![\"Ian](\"https:\/\/i.cbc.ca\/1.4308267.1506457747!\/fileImage\/httpImage\/image.jpg_gen\/derivatives\/original_620\/ian-macdonald-liquidity-wines-ltd-president-and-owner.jpg\")
<\/p>\nIan MacDonald, president and owner of Liquidity Wines Ltd., says a bottle that retails for $24 in an Alberta store generates only about 25 cents in profit for the company. If that same bottle was shipped directly to consumers, it would sell for about $18 and provide a profit margin of $7.50. (YouTube)<\/p>\n
The small B.C. wineries say Comeau’s case\u00a0is the first court case that has provided an opportunity for them to address the barriers to shipping wine between provinces.<\/p>\n
The New Brunswick Liquor Control Act provisions at issue in the Comeau\u00a0case directly impact them, they say, by preventing them\u00a0from shipping directly to consumers in New Brunswick.<\/p>\n
Because of increased competition and market saturation, the wineries need to look to the rest of Canada for new markets and\u00a0increase their direct to consumer sales, which are more profitable,\u00a0“in order to survive,” according to Ian MacDonald, president and owner of Liquidity.<\/p>\n
“However,\u00a0interprovincial\u00a0trade barriers have prevented us from doing so and are an existential threat to the entire industry,” MacDonald states in an affidavit filed with the court.<\/p>\n
“The future financial sustainability of small wineries\u00a0is at severe risk.”<\/p>\n
Could impact Alberta subsidies<\/h2>\n
Artisan Ales says the Supreme Court’s ruling on the\u00a0Comeau\u00a0case could “significantly impact” its legal and financial interests.<\/p>\n
The company\u00a0challenged\u00a0an Alberta subsidy program for local craft brewers last year, arguing\u00a0the mark-up on out-of-province beers is discriminatory and puts\u00a0them at a competitive disadvantage.<\/p>\n
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