Law Times

Page 6 August 20, 2018 • LAw times www.lawtimesnews.com Buck a beer could end up as buck a sip BY IAN HARVEY S uds. Brewskis. Barley sandwich. Nectar of the Gods. The concept of a Buck a Beer on these last sweltering days of summer is a siren's call to many voters. There's many a slip between the cup and lip, though, and there are still many unanswered questions about how this will actually work. The 15 revocations and substitutions to regulations of the Liquor Control Act in O. Reg. 116/10 dealing with mini- mum pricing and effective Aug. 27 are confusing. The government also appears to giveth and taketh, raising the minimum prices on sake, wine and wine coolers next March to $7.75 for a 750-millilitre bottle of wine with more than seven per cent alcohol by volume from $7.05, a 10-per-cent hike, which begs the ques- tion as to why we need bother with a minimum price at all. Then there's a provincial excise in- crease Nov. 1, six months after the last increase in March. So, things aren't re- ally as generous as they seem. The fed- eral excise annual spring increases are also baked in for the next decade or so. Getting to an apples-and-apples comparison has been difficult. The LCBO referred questions to the Ministry of Finance, which referred to its own website, where the details are as clear as a mudslide. For the brewers, it's not all lager and laughter either. Many craft brewers say they just can't afford to sell a 341- ml bottle or 355-ml can of beer for a dollar. Those global conglom- erates controlling the Beer Store have also been strangely silent. They lobbied hard during the election for a reduction in taxes, which make up 47 per cent of the price of a beer and that hasn't happened. Two brewers, however, say they'll give it a go. More will probably follow. What that beer will taste like and what the container size will be is any- one's guess at this stage. So, how is this really going to work? Even the Ontario Craft Brewers are cir- cumspect. "OCB has long advocated for ex- panded retail channels and lower beer taxes to ensure we keep Ontario's excel- lent independent craft beer affordable and accessible for consumers," it said in an email to Law Times. "We are pleased that this government is clearly fo- cused on innovative changes to the current retail model, and expanding consumer choice." Read between the lines and what the OCB really wants is to open the con- versation about satellite retail stores, away from their brewing operations; a chance to collaborate with other microbrewers to create a boutique co-op store, sharing the costs and cross- promoting products, released from the fight with the Beer Store and the LCBO for precious shelf space. Instead, what we're getting is cheap- er beer without lowering the associated taxes. Currently, the minimum price is about $1.48 per 341-ml bottle, which comprises 10 cents deposit, 11 cents federal excise tax and, as of Nov. 1, 2018, 12 to 25 cents Ontario excise tax and 13 per cent HST on top of those taxes. Take out those factors and the raw minimum is about 83 cents to $1 a bottle, which includes not just the brew- ing but packaging, marketing and retail markup. The taxes are also dependent on whether it's a conglomerate brew, micro brew, draft or non-draft beer. It is those taxes that keep beer prices rising: Canadians pay five times more taxes than Americans on beer, accord- ing to a beer lobby group. The minimum price is a nanny-state mechanism to protect us from ourselves and protect those global conglomer- ates from being undercut by an upstart brewer. Reducing it is a three-card Monte game that serves up the illusion of cheaper beer while still keeping the pea- nut of taxes firmly in place. Under the Buck-a-Beer pricing, a 341-ml bottle before all taxes at 5.5 per cent or less is about 48 cents, so there is some headway for brewers with sharp accountants and strong cost controls. But that hand in your pocket is still dip- ping into your wallet. It could all end up being a Buck a Sip and not Buck a Beer. LT uIan Harvey has been a journalist for more than 41 years, writing about a diverse range of issues including legal and political affairs. His email address is ianharvey@rogers.com. COMMENT u EDITORIAL OBITER By Gabrielle Giroday ©2018 Thomson Reuters Canada Ltd. All rights reserved. No part of this publication may be reprinted or stored in a retrieval system without written per- mission. The opinions expressed in articles are not necessarily those of the publisher. Information presented is compiled from sources believed to be accurate, however, the publisher assumes no responsibility for errors or omissions. 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Karen Lorimer Managing Editor . . . . . . . . . . . . . . Jennifer Brown Editor . . . . . . . . . . . . . . . . . . . . . . Gabrielle Giroday Staff Writer . . . . . . . . . . . . . . . . . Anita Balakrishnan Copy Editor . . . . . . . . . . . . . . . . . . Patricia Cancilla CaseLaw Editor . . . . . . . . . . . . . . . . . . Leah Craven Art Director . . . . . . . . . . . . . . . . . . . Phyllis Barone Production Co-ordinator . . . . . Jacqueline D'Souza Electronic Production Specialist . . . Derek Welford Math and the law A s summer closes and the school year draws near, topics re- lating to education are top of mind. Recently, Law Times began a series looking at the need for a proposed law school at Ryerson University, which is set to open in 2020. This week, the third installment looks at the steps taken so far in the process. The province, and the new government leading it — so far — has not stated its commitment. In the course of the series, the statistics that have come up during the research have been sobering. As Anita Balakrishnan reported, the average debt of first-year Ontario law students is $35,358, which rises to an average of $53,876 in the second year and $71,444.17 in the third year, with 85 per cent of law students overall reporting a debt of $40,000 or more, according to the law society and separate statistics from Ryerson's law school approval proposal to the Federation of Law Societies of Canada, which cites 2014 survey data. There is a 60-per-cent increase in graduates from Ontario law programs between 2007 to 2012, says the Law Society of Ontario, and only 10 per cent of law firms in Ontario provide articling posi- tions. These figures would give me pause for thought about the sig- nificant investment required to obtain a law degree at any Ontario school and the prospects facing young lawyers once they graduate. Practising law can be ex- tremely rewarding and come with plenty of pub- lic admiration and esteem — which is why many young people f lock to the profession. But, these days, it comes with high costs. These are statistics that should be widely shared with those contemplating a career in law. LT Queen's Park Ian Harvey

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