GNWT eyes N.B. alcohol case
Liquor store owner says the GNWT may be forced to reduce costs if New Brunswick man wins constitutional challenge
Simon Whitehouse
Northern News Services
Friday, September 18, 2015
SOMBA K'E/YELLOWKNIFE
A constitutional challenge in New Brunswick involving a man transporting alcohol across inter-provincial borders could eventually drive down the price of alcohol in the NWT, according to the owner of the city's two liquor stores.
Liquor store owner Ed Eggenberger says the GNWT, which now owns the liquor being sold in the city's two liquor stores, may be forced to reduce costs if New Brunswick man wins a constitutional challenge that involves bringing liquor across provincial borders. The case also has the GNWT watching the outcome. - Simon Whitehouse/NNSL photo |
In August, the case of Gerard Comeau made national headlines. The man is fighting charges from 2012 under the New Brunswick Liquor Control Act, which penalized him for bringing 14 cases of beer and three bottles of liquor across the border from Quebec to New Brunswick.
Comeau, represented by lawyer Mikael Bernard, is arguing inter-provincial trade barriers involving carrying liquor is unconstitutional because the Constitution Act states "All articles of the growth, produce, or manufacture of any of the provinces shall, from and after the Union, be admitted free into each of the other provinces."
Ed Eggenberger owns both the Liquor Store and the Liquor Shop in the city and has long stated the price of liquor is too high in the North because of the level of tax.
"People complain about the price of liquor compared to the south but really it is the NWT tax that is driving it," he said. "If you look at the amount of tax on a litre of anything compared to what Alberta has, it is almost three times or more than double. How do you compare?"
Eggenberger said if Comeau wins his case the government will be forced to compete in a free market.
"Because then people can do whatever they want and bring whatever amount they want in. Otherwise I think the government is going to have to compete on price with Alberta in order to keep market share."
Peter Maher, liquor control commissioner for the GNWT, said the territorial government is aware of the situation but right now all it can do is wait and see what happens next.
"The case is on our radar and the decision isn't coming until the spring of 2016," he said. "My expectation is that whatever side wins or loses, it will be appealed. Until we get the decision in 2016, it is on our radar and all we can do is pay attention to it.
"It is a reality that there is liquor coming into the territory that we are not selling."
Under Section 43 of the NWT Liquor Act, "a person may personally import into the Northwest Territories 1.5 L of wine, 1.14 L of spirits or 8.52 L of beer." Anything more than this figure requires an "importation certificate," which is issued by the liquor control commissioner. It couldn't be determined by press time who could obtain such a certificate.
Const. Elenore Sturko of the Yellowknife RCMP said the case may have more impact on areas closer to the Alberta and Northwest Territories border because they are harder to detect.
She referred to a case last March in which a couple from Fort Liard went to B.C. and purchased too much alcohol without an importation certificate.
"There is a limit between interprovincial lines because obviously you aren't paying taxes here," she said. "It does happen but it is something you would probably see closer to the border. You aren't going to see someone flying to Sachs Harbour with a big crate full of booze because it is easier for us to detect. Who doesn't head down to Alberta and bring back a bottle of booze or a bottle of wine? That is common."
Sturko said a big concern among police is if someone was selling a large quantity rather than if someone was simply caught with a small amount of booze.
"Finding 300 mickeys, for example would be different than finding someone with their Christmas wine," she said.
Melissa Tessier was purchasing alcohol at the Liquor Shop late Wednesday afternoon.
"If you compare the prices to other provinces, it is expensive," she said. "In Quebec you can have a flat of 24 beer for about $24 or $25 when it is about $60 here. I did notice a drop in the price of my wine today, though. This was $19 which is probably a dollar
less than usual."