QUEEN'S PARK - Erie-Lincoln MPP Tim Hudak is wondering why the Liquor Control Board of Ontario (LCBO) has not put the weight behind Canadian VQA wineries in its recent dispute with the European Union (EU) over excise taxes.

The EU has filed a complaint with the World Trade Organization (WTO) over the federal Conservative Government's recent elimination of excise tax for wines made from 100% Canadian grapes. Wines not made from 100% Canadian grapes - including European wines - continue to be subject to excise tax.

"The "O" in LCBO stands for Ontario. The LCBO should be standing with Ontario VQA producers and taking on the EU in this dispute," said Hudak. "As the world's largest single purchaser of European wines, the LCBO has considerable marketing muscle - they should put it to good use."

In 2000, the PC Government's Consumer and Business Services Minister Bob Runciman, Ontario Wine Council representatives, and then LCBO Chair Andy Brandt took on the Europeans in a similar dispute over access of Ontario ice wines into European markets. They advised European governments that if they continued to set up trade barriers to Ontario ice wine, European products would face obstacles to accessing LCBO shelf space.

The aggressive government and LCBO and Wine Council coalition successfully caused the Europeans to acquiesce within months. A similar unified front should cause the EU to rethink their objection to a modest $10 million tax break for Canada's VQA producers when European wineries receive approximately $2 billion per year in European government subsidies.

Hudak referred to the McGuinty Government's infamous decision to rebrand the Ontario Lottery and Gaming Corporation (OLGC) as the OLG. This resulted in approximately $6 million in costs to drop the "C" from all signage, letterhead, etc.

"Unless the McGuinty Government has also dropped the "O" from LCBO, the taxpayer-owned LCBO has a duty to promote Ontario product," said Hudak. "The LCBO should send a signal to the European governments that their petty dispute over a modest tax break for VQA wineries could damage a long term and lucrative relationship with the LCBO and Ontario consumers."

The Wine Council of Ontario and Canadian Vintners Association have called for a boycott of European wines until the complaint is withdrawn.

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Further information: Tim Hudak, MPP