ADMS 1010 Lecture Notes - Brian Mulroney, National Energy Program, Canadian Wine
•Under Trudeau represented an interventionist approach to develop a more
independent Canadian oil industry, such as buy back Canadian company from
•But creating a conflict between the role or provincial and federal government
and the creation of government owned crown corporation- Petro- Canada.
However, government actions spur pipeline development for export and
competitions, this in turn opened up more production through exploration
along the pipeline route.
•Later created National Energy Program. Let oil and gas price trend towards
the same as Canadian domestic and Global market price. However, making
the rate below global market rate led to greater consumption, and create
distrust between Ottawa and the western provinces. Many oil companies left
Alberta in response to NEP. unemployment↑
•NEP also promoted greater Canadian control and ownership of the domestic
•Donald Ziraldo and Karl Kaiser developed this winery in Niagara region.
•LCBO granted them to produce wine in Niagara and sell their products in
LCBO Toronto wine stores.
•4 components of winemaking: inputs, climate, soil, artisanship.
•In order to change consumers’ perceptions of Ontario wine standard, they
innovate a new ice wine.
•Their Inniskillin wine and ice wine both got awards.
•The ice wine spanned the globe, opened up another distributing channel to
export their wine.
Free Trade Agreement (Effective on Jan 1st, 1989, under Prime Minister Brian
•Government offered sponsor experimental vineyard to give wine makers a
great start to produce quality wines without costly trial and error.
•Ontario and British Columbia set up Grape and Wine Adjustment Program
with the government to provide subsidy assistance to farmers to get used to
the new market conditions and provide forgivable loans to them.
•However, supply> demand. Niagara and British Columbia produced more
than the supply needed for the local.
•They are forced to buy their inputs on the international market which added
more cost in their pricing structure.
•Canadian demand in wine was low back then. However, North American
began to travel more often to Europe and that in turn bring these tasting
experiences and expectation home.
•Their tastes were improving and evidence that drinking red wine is good for
health. They began to take interest in wine.
•Canada imports most of the wine from Europe, but there is a conflict in
reciprocity since Canada is not allowed from exporting to the EU, which
refuses to buy Canadian wine.
•Canada biggest export market is U.S. However, U.S. doesn’t really need
•Canada needed to find new export market for their product, since Canada
does not have much domestic support.
•Government regulate the price control of liquor industry in order to gain
revenue from mark-up and taxes.
•Ontario government passed the Wine Content Act by limiting the use of non-
Ontario grapes. But later removed.
•The FTA focus on listing, pricing, distribution practices, blending and the
standards of labelling requirements.
•It allows the provincial liquor board to charge the additional cost of selling the