Eased regulations on importing alcohol are anticipated to impact New Brunswick Liquor’s revenue, contrary to previous assertions to CBC News. Earlier this year, New Brunswick eliminated restrictions on the quantity of alcohol individuals can bring into the province for personal use, aiming to dismantle interprovincial trade hurdles and enable direct alcohol purchases from some producers in other provinces.
An internal briefing note from April, obtained through a right to information request, indicated that N.B. Liquor foresees a downturn in sales due to the removal of personal exemption limits. The Department of Justice and Public Safety staff member mentioned that while the exact extent of this impact cannot be precisely forecasted, it is expected to be negative.
In contrast to the earlier statements made to CBC News in July by the minister of intergovernmental affairs and the N.B. Liquor CEO, a recent declaration from an N.B. Liquor spokesperson acknowledges the anticipated repercussions of the changes. The spokesperson mentioned that while they do not anticipate significant impacts necessitating operational or strategic adjustments, there might be some financial consequences.
Last fiscal year, N.B. Liquor contributed $189.6 million to the provincial budget and is projected to generate a $180 million profit this year. The opposition Progressive Conservatives filed the right to information request, with interim leader Glen Savoie criticizing the lack of thorough planning before implementing the changes, highlighting potential negative effects on both N.B. Liquor sales and government revenues in New Brunswick.
Despite concerns raised, Jean-Claude D’Amours, hailing from the Quebec-adjacent Madawaska region, defended the changes, emphasizing that the decision was not rushed and stemmed from discussions with provincial and federal counterparts. D’Amours highlighted the potential benefits of allowing producers to sell directly to consumers in other provinces, suggesting a balance of positive and negative outcomes.
Moreover, an executive summary prepared for the Liquor Control Act changes in March addressed long-standing curiosities, indicating that the enforcement of personal importation limits had been lax for years. The summary suggested that many residents near provincial borders may have been unaware of or disregarded the exemption limits, a matter that was taken to the Supreme Court of Canada previously.
Documents revealed that the changes were swiftly implemented, with the proposal first introduced by the deputy minister of justice and public safety in February, leading to amendments to address unintended consequences before the bill’s passage in March. Despite initial confusion over the bill’s enforcement timeline, clarification was eventually provided, emphasizing that the removal of personal exemptions was in effect earlier than previously indicated.
