Premier of Nova Scotia says he will meet with winemakers to talk about potential assistance

Nova Scotia Premier Tim Houston expressed his willingness on Thursday to meet with the province’s wine industry to address an ongoing dispute regarding the financial assistance his government has proposed for grape growers.

Houston made these remarks following a cabinet meeting, after grape growers rejected an offer last week from the government that included an additional $1.6 million in support.

This extra funding would have increased the total government support for farm wineries to $6.6 million per year.

However, the proposal also included capped payments of $1 million per year to each of the province’s two commercial wine bottlers.

Wineries rejected the offer, deeming it unfair because it provided subsidies to commercial bottlers, who import inexpensive grape juice to produce wine that undercuts the price of locally produced wines.

They have also requested a face-to-face meeting with the premier.

Houston acknowledged the importance of Nova Scotia’s wine industry, which he believes has “lots of potential,” and indicated his openness to further discussions as the government aims to provide support.

“We have great respect for those who are working in the industry,” he stated. “We haven’t landed in a place where everyone feels comfortable, but we’ll certainly try to. I think the next step is to sit down and have a frank discussion about what’s possible.”

Karl Coutinho, co-owner of Avondale Sky Winery and board chair of Wine Growers Nova Scotia, welcomed the premier’s offer for a meeting as “positive news.”

“That’s what we’ve been asking for,” Coutinho said in an interview on Thursday, noting that farm wineries would prefer to arrange a meeting as soon as possible, even amidst their busy harvest season.

“We don’t want to put it off until the end of harvest; it’s far too important to our industry,” he emphasized.

Both the Liberal and NDP leaders stated on Thursday that the government must reach an agreement that alleviates concerns among wineries about facing unfair competition if support is funneled to commercial bottlers.

Liberal Leader Zach Churchill remarked that there is no economic justification for the province to support commercial wine bottlers.

“They (the government) should do the right thing and support the part of the wine sector that contributes more to our economy, more to tax revenue, and more to job creation,” Churchill asserted.

An economic impact report prepared by Acadia University business professors Donna Sears and Terrance Weatherbee, which was released last week by the grape growers, indicated that the direct GDP generated by farm winery operations in 2022 was conservatively estimated at $26.95 million, with an additional $6.29 million generated by hospitality and retail services at these wineries.

The total direct and spinoff GDP from commercial wine bottling operations was reported to be $17.63 million, according to the report.