Thank you, Mr. Speaker. As I mentioned in my Member's statement, as of April 1st, the prices of beer for licensees in the City of Yellowknife increased dramatically: for draft brewers, around 10 to 18 percent; bottled beer, 20 percent; and wine, 6 percent. These are significant costs to their businesses and their ability to maintain a viable business without passing on too many costs to the consumer. These are far ahead of what was advertised by the NWT Liquor Commission, who said the prices would be modest. Can the Minister responsible for the Commission respond to what caused these price increases, clearly, on the public record? Thank you.
Thank you. Minister of Finance.
Thank you, Mr. Speaker. I am glad to see the Member advocating for, even though he said he is not, lower prices for alcohol in the Northwest Territories, knowing the effect that alcohol has on the people of the Northwest Territories. Terminating the contract with the liquor warehouse did result in lower costs to consumer at the liquor stores and, as an unintended consequence of levelling the cost structure for liquor stores and licensees, there was a significant increase to licensees in Yellowknife. We missed that, and as Minister, I take responsibility for that.
It has been addressed. The Member is well aware of how it has been addressed, because we communicated that to him, through a discount program, and that discount program is throughout the Northwest Territories, not just Yellowknife. Thank you, Mr. Speaker.
I am a bit confused. The Minister mentioned that the goal here is not to lower the price of alcohol, and yet it seems like that is what was achieved, while the price, as an unintended consequence, went up. Can the Minister clarify: what was the price decrease for consumers as a result of this change?
Well, there was a price decrease to consumers because, through the discount program, the licensees were actually paying a lesser price than they were able to then pass along those savings to the consumers. I have the numbers here. I could look at possibly putting these on the website so that they know exactly what the prices went down to. It is right in my briefing book. The licence holders paid 8.3 percent less for spirits, 6.1 percent less for wine, and then they did pay a bit more for canned and bottled beer, because I think it is costed on a volume basis.
We have taken steps to ensure that the licensees didn't feel the brunt of it as much as they may have, which was unintended, but through this particular initiative, in not renewing the contract, I believe that we reduced about $1.2 million in inventory that was held at the warehouse.
I think that this information is important for the public to know. It has yet to be fully explained. Can the Minister commit to publicizing the full extent of this information, the total pricing traces, the total price decreases after the subsidy program, and how the subsidy program is going to work to benefit the hospitality industry in Yellowknife and throughout the Northwest Territories?
I will look at possibly doing this, if I am able, to make that public to the 1 percent who are quite interested in it. The other 99 percent are wondering why we are lowering the price, knowing the effect that it is having on people in the Northwest Territories.
Thank you. Oral questions. Member for Kam Lake.
Thank you, Mr. Speaker. I appreciate that the Minister has made this choice when his personal feelings are quite different, but our hospitality industry is not about liquor. It's about jobs. It's about business opportunities in the capital and throughout the Northwest Territories. If we are going to support tourism and other opportunities, we need to support it, as well.
There have been calls to reform Canada's antiquated liquor systems. Ontario is moving towards a major reform of policy. There seems to be interest on the ground from, at least, my constituents and the people I have spoken to. Will the Minister, in undertaking the price evaluation, look to consulting with folks on how we can modernize our liquor system and make sure that it is fair, competitive, and offers consumers more choice? Thank you.
Personal feelings aside, I think that the department has done a good job in trying to mitigate the impact that it was going to have on licensees. I think that we have done that. I have asked the department to do a whole briefing policy review, and there are a number of other things that we may need to do.
I fully understand and I fully respect the impact that it might have on business in the Northwest Territories. I am not blind to that fact. We try to do what we can to have a balance here between the needs of business and the Northwest Territories, and I think we have addressed that. If I am able to, I will make some of the information that we have provided along public so that people will know that we have taken steps to ensure that the licensees are protected in this, as well. Thank you, Mr. Speaker.
Thank you. Oral questions. Member for Frame Lake.
