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Albertans take great pride in our open and free markets. One of the clearest examples of this is our retail marketplace for liquor products.
In Alberta, our system stands on three pillars. One: it allows entrepreneurs to thrive, creating thousands of stable, reliable jobs. Two: it gives consumers choice and convenience that is the envy of the rest of Canada. Three: it helps fund vital public services for all Albertans.
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Recently, the system’s regulator, Alberta Gaming, Liquor and Cannabis (AGLC), cracked down on some activity that was threatening the third pillar. AGLC identified 106 out-of-province liquor suppliers, mostly from British Columbia, who were bypassing Alberta’s system by shipping directly to consumers.
These suppliers were able to avoid having their products be subject to the same provincial liquor markups as all liquor products in Alberta. This is unfair to Alberta-based businesses and producers from other jurisdictions who are following the rules because it gives the rule-breakers an unfair pricing advantage.
AGLC ordered these suppliers to stop sending shipments outside of Alberta’s regulated liquor model immediately and let them know that unless they follow Alberta’s rules, their products will no longer be allowed for sale in the province.
To be clear, Alberta — like many other provinces — has had rules against direct-to-consumer shipping for years. These rules are not a secret and it is the responsibility of anyone doing business in our province to know them.
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It is AGLC’s job to ensure everyone plays by the rules, and that is exactly what they have done.
At the same time we have been hearing from Alberta craft producers, that their products face unfair barriers to the B.C. market. They tell me that B.C.’s liquor system is unfairly biased in favour of B.C.-based producers.
Clearly, there is an imbalance between our provinces. A recent check with AGLC showed more than 2,400 different products from B.C. were warehoused in Alberta for distribution to our retailers.
Meanwhile, a search of the B.C. government’s liquor distribution website found just four products from three Alberta producers. You do the math.
My ministry officials and I have been in discussions with our counterparts in B.C. about opening up liquor markets in our provinces. We will continue to work together and I am optimistic we will find solutions that will benefit both of our provinces.
We are always open to opportunities to improve interprovincial trade, but there needs to be a level playing field for everyone in the game. Good neighbours should be good trading partners and that starts with open and free markets.
Dale Nally is the minister of Service Alberta and Red Tape Reduction.
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