Ford government battles with Chamber of Commerce over Beer Store

Ontario Conservative Finance Minister Vic Fedeli unveils the 2019 Ontario Budget on Thursday April 11, 2019. Jack Boland / Postmedia Network

The government that markets itself under the slogan that “Ontario is Open for Business” is taking a shot across the bow of the province’s biggest business group.

Finance Minister Vic Fedeli is firing back at the Ontario Chamber of Commerce after they came out against the government’s move to break the 10-year contract with The Beer Store using legislation.

“Modernizing the sale of beverage alcohol is an important objective and we support a more competitive marketplace,” Chamber president Rocco Rossi wrote in a letter to Fedeli.

“However, breaking a legitimate contract is a short-sighted approach.”

That raised the ire of Fedeli.

“We are extremely disappointed with your letter supporting the near monopoly of the 3 global beer giants in Ontario,” Fedeli wrote back.

“Insisting we maintain this sweetheart deal for six more years is not only ‘short sighted,’ it is denying consumers’ choice and convenience, and preventing many small businesses the opportunity to grow and flourish.”

The letter came as Fedeli was not only marking the passing of the legislation to break The Beer Store deal but also announcing an increase in the number of grocery stores and LCBO agency stores that will open over the next year.

While the legislation to end the deal with The Beer Store has passed, the government has not proclaimed it, meaning it has yet to take effect. That makes it more of a negotiating tactic than anything else.

As for the increase in stores selling booze, the government has been careful to do it in a way that keeps it within the existing agreement while negotiations continue.

In his letter to the Ontario Chamber, Fedeli accused Rossi of taking a stand on this issue without consulting with his board or members including craft brewers.

The Chamber declined further comment, saying the original letter speaks for itself.

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