Proceedings of the Standing Senate Committee on
Agriculture and Forestry
Issue 15 - Evidence - June 23, 2005
OTTAWA, Thursday, June 23, 2005
The Standing Senate Committee on Agriculture and Forestry, to which was referred Bill S-38, respecting the implementation of international trade commitments by Canada regarding spirit drinks of foreign countries, met this day at 8:05 a.m. to give clause-by-clause consideration to the bill.
Senator Joyce Fairbairn (Chairman) in the chair.
[English]
The Chairman: Good morning colleagues. We are here to conduct clause-by-clause consideration of Bill S-38. With us this morning is Mr. Wayne Easter. He liked it so much a couple of days ago that he wanted to come back. Before we get into the clause by clause, he wants to offer a few clarifications or comments on the question of Caribbean rum.
He brings with him officials from the department, Mr. David Liston and Mr. Gary Koestler.
The Honourable Wayne Easter, P.C., M.P., Parliamentary Secretary to the Minister of Agriculture and Agri-Food with special emphasis on Rural Development: Honourable senators, we are pleased for the opportunity to be here again to assist with the amendments to Bill S-38. In looking through the blues of the committee the other night, I felt I might have left you with a little confusion on the Caribbean rum issue. I cannot imagine doing that but it does happen to me occasionally. Therefore, I wanted to go through that issue a little bit so that is clear.
In the case of Caribbean rum, Bill S-38 reflects commitments Canada made at the Commonwealth Heads of Government meeting in Nassau in 1985 to establish an economic and trade development program for the Commonwealth Caribbean countries and territories. The current standard for Caribbean rum was established through amendments to the Food and Drug Regulations made on March 2, 1989. The amendment was published in the Canada Gazette, Part I, on October 1, 1988. No notice of objection or inquiries were received at that time.
However, the Standing Joint Committee on the Scrutiny of Regulations has held the position that the provisions related to Caribbean rum would be found to be ultra vires of the Food and Drug Regulations because they were made for the purpose of facilitating trade, and this is not one of the purposes of the Food and Drugs Act. I believe that is where the confusion may be, looking at the minutes of the last meeting.
The Standing Joint Committee on the Scrutiny of Regulations believes that a court would find these provisions beyond the scope of the regulation-making authority of the Food and Drugs Act because the purpose of this regulation, trade facilitation, is not one of the purposes of the FDA.
That should make it clear on the record what was meant the other evening. Beyond that, we are available to assist with your discussion on the amendments.
The Chairman: If there are no questions on that issue, we will move to clause-by-clause consideration, if it is agreeable to honourable senators.
We will begin, as always, with the title. Shall the title stand?
Hon. Senators: Agreed.
The Chairman: Shall the preamble stand?
Hon. Senators: Agreed.
The Chairman: Shall clause 1 stand?
Hon. Senators: Agreed.
The Chairman: Shall clause 2 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 3 carry?
Senator Mitchell: Honourable senators, I move:
That Bill S-38 be amended in clause 3, on page 2, by replacing lines 3 to 9, with the following:
3.(1) No person shall use the name of a spirit drink referred to in sections 1 to 5 of the schedule to sell a product as a spirit drink except in accordance with those sections.
(2) Subsection (1) does not prevent the use of the name of a spirit drink to sell the spirit drink if it has been blended or modified in accordance with the laws of Canada.
(3) Subsection (1) does not prevent the use of any registered trademark that was applied for before January 1, 1996.
The Chairman: Is it your pleasure, honourable senators, to adopt the motion?
Hon. Senators: Agreed.
The Chairman: Shall clause 3, as amended, carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 4 carry?
Senator Mitchell: Honourable senators, I move:
That Bill S-38 be amended on page 2, by adding after line 9 the following:
3.1(1) No person shall use the name of spirit drink referred to in sections 6 to 14 of the schedule to sell a product as that spirit drink except in accordance with those sections.
(2) Subsection (1) does not prevent the use of the name of a spirit drink to sell the spirit drink if it has been blended or modified in accordance with the laws of Canada.
The Chairman: Is it your pleasure, honourable senators, to adopt the motion?
Hon. Senators: Agreed.
The Chairman: Shall clause 4, as amended, carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 5 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 6 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 7 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 8 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 9 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 10 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 11 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 12 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 13 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 14 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 15 carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 16 carry?
Hon. Senators: Agreed.
The Chairman: Shall the schedule carry?
Senator Mitchell: Honourable senators, I move:
That Bill S-38 be amended in the schedule, on page 6, by replacing sections 1 to 7 with the following:
1.(1) A spirit drink may be sold using the name Grappa if it has been produced exclusively in Italy.
(2) A spirit drink may be sold using the name Grappa di Ticino if it has been produced in the Ticino region of Switzerland.
2. A spirit drink may be sold using the name Jägertee, Jagertee or Jagatee if it has been produced exclusively in Austria.
3. A spirit drink may be sold using the name Korn or Kornbrand if it has been produced exclusively in Germany or Austria.
4. A spirit drink may be sold using the name Ouzo or Oύζo if it has been produced exclusively in Greece.
5. A spirit drink may be sold using the name Pacharán if it has been produced exclusively in Spain.
6. Scotch whisky may be sold under that name if it has been distilled in Scotland as Scotch whisky for domestic consumption in accordance with the laws of the United Kingdom.
7. Irish whisky may be sold under that name if it has been distilled in Northern Ireland or in the Republic of Ireland as Irish whisky for domestic consumption in accordance with the laws of Northern Ireland or the Republic of Ireland.
The Chairman: Is there any discussion?
Senator Tkachuk: What is the difference?
Senator Mitchell: Basically, the amendment specifies more clearly the intent of the agreement for the way in which these spirits are to be dealt with. If read in conjunction with the clause 3 amendment, it has the effect of saying that if you want to sell something called ``Grappa'' in Canada, it must be produced in Italy, and if you want to sell something that is a mixture, for example, a Grappa cooler, that also has to be produced in Italy. You could not bring Grappa to Canada and add something to it for the purpose of selling it as, for example, a Grappa cooler. The amendment clarifies and specifies the intent of the agreement.
The Chairman: Honourable senators, is it your pleasure to adopt the motion?
Hon. Senators: Agreed.
The Chairman: Shall the schedule, as amended, carry?
Senator Robichaud: Perhaps I missed something in the schedule for Scotch whisky and Irish whisky. Was the part in respect of blending removed?
Senator Mitchell: Yes, that was removed because we added subsection (2) to clause 3 that deals with blending. To have it in the schedule would be a repetition of the blending requirements.
The Chairman: Shall the schedule, as amended, carry?
Hon. Senators: Agreed.
The Chairman: Shall the title carry?
Hon. Senators: Agreed.
The Chairman: Shall the preamble carry?
Hon. Senators: Agreed.
The Chairman: Shall clause 1 carry?
Hon. Senators: Agreed.
The Chairman: Is it agreed that Bill S-38 be adopted with amendments?
Hon. Senators: Agreed.
The Chairman: Is it agreed that I report Bill S-38, as amended, at the next sitting of the Senate?
Hon. Senators: Agreed.
The Chairman: I thank Mr. Easter and officials for appearing this morning to clarify the record.
The committee adjourned.