New Brunswick Liquor Act court challenge wraps up

MooseheadBreweries doesn't opposeNew Brunswick consumers buying beer in Quebec and bringing it home, as long it is for personal use, chief financial officer Patrick Olandtestified Friday at a trial that couldaffect provincial trade barriers across Canada.

"We, as a brewer, have an interest in making sure our product is distributed by legal means. We fear bootlegging by tractor trailer load," he said.

Oland was a witness at the trial of Campbellton, N.B. residentGerald Comeau, who was fined $292 for illegally importing beer into the province from Quebec in 2012.

"As a brewery, we are very concerned withorganized criminal involvement in the distribution and sale of our products,"Oland said in a statement issued by the brewery laterFriday afternoon.

He also said Mooseheadhas lost millions of dollars in sales to Quebec beer stores over the years.

Against free trade policies

Comeau's lawyer Arnold Schwisberghas argued that trade barriers between the provinces that restrict transporting alcohol and other items is against Canada's free trade policies.

"We lost our way and this case is about doubling back," he said, adding that countries in the European Union enjoy a higher level of free trade than Canadian provinces.

Moosehead sells beer across Canada, as well as in the United States and other countries, where taxes and levies vary greatly, Oland said.

He testified that taxesare similar across the country except in Quebec, which has thelowest beer taxes and product markup.

Quebec also levies its own high tariff on beer made outside the province, he said.

'Forced to pay a punitive tariff'

"In Quebec, where we don't own a brewery, we are forced to pay a punitive tariff of $8.56 on every case of beer we ship there from our brewery in Saint John. Because of this tariff, Moosehead is unable to exportbeer to Quebec," Oland said.

"That means our products are unavailable to New Brunswick consumers who buy beeracross the border because of the price difference."

He also gave an analysis of how breweries sell their beer in every Canadian province.

Schwisberg applauded the explanation.

"We are very pleased to have been able to lay out to the court and to the Canadians following the trial how senseless it is that we have this patchwork quilt of situation that involves so many different liquor policies, controls, and constraints from one province to another."

The four-day trial wrapped up Friday. Lawyers for both sides will now submit written summaries of their arguments to the court.

The decision which could come in the spring will likely have wider implications than Comeau's $292fine, it could affect free trade across all provinces in Canada.