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The New West Partnership is showing its first crack and the fault line is in Alberta.
That province is introducing measures to give preferential treatment to local brewers and charging a one-size fits all tariff on everyone else regardless of production value.
That means Saskatchewan’s Great Western Brewing will pay the same amount as Labatts and Molson.
As of August 5, Alberta will move to one standard beer mark-up of $1.25 per litre regardless of company size, location, or level of production.
This comes at a time when the four western provinces have been looking to remove inter-provincial barriers to trade.
“They’re just going to subsidize their local industry and they’re charging everybody else going in to Alberta their full multinational rate the which simply isn’t fair”, Saskatchewan Liquor and Gaming (SLGA) Minister Don McMorris explained. “At the very least, Alberta’s grant program would run counter to the spirit and intent of the New West Partnership.”
McMorris believes this could impact prices for consumers both in Saskatchewan and Alberta.
Alberta breweries sold 359,905 litres of beer in Saskatchewan and now the government is considering how to retaliate.
“We are looking at all options right now, this is fairly early in the process so we are looking at all options,” McMorris countered.
Premier Brad Wall is at the Council of Federation meeting with his counterparts this week and will raise the issue with Rachel Notley.
