Growers, wineries given more time to solve issues

Ontario grape growers and wineries have been given more time by Queen's Park to come up with a plan to solve a host of challenges facing the wine industry.

The Wine Council of Ontario and the Grape Growers of Ontario were directed in November by the province to devise a long-term blueprint for the sector by the end of February or face changes imposed by the Ontario government.

St. Catharines MPP Jim Bradley said the two sides are making progress and have asked for more time to finalize their report to the government.

"The government is inclined to do that," said Bradley, who is head of the province's wine secretariat.

"I guess if there was no progress we'd be in a different position. But both (sides) seem to indicate there's been some significant progress."

The order from Premier Dalton McGuinty's chief of staff came last fall after a $4-million bailout the province gave to grape growers in October to deal with a heavy surplus of wine grapes. Four-thousand tonnes of grapes grown in 2008 ended up on the ground because there was no buyer.

Problems in the wine industry range from more retail channels needed to sell Ontario wines to changing the grape price structure to altering rules for Cellared in Canada wines, which are made from up to 70 per cent foreign wine content.

Neither side wished to comment on the specifics of ongoing meetings on Thursday.

"We are making progress, but we're still trying to get a plan worked out so we're still in the midst of it," said Bill George, a Beamsville grape grower and chairman of the Grape Growers of Ontario.

George said the two sides are hoping to have a plan put together by April.

Hillary Dawson, president of the Wine Council of Ontario, said the two sides have had five meetings and several work sessions. Talks are going well, she said.

"We've got to get it right for our industry," Dawson said.

"It's a complicated industry and we've got to invest the time we need to make sure that we all understand and appreciate our viewpoints and that any solutions we come up with are sustainable."

But George conceded the process has been a difficult one. Some growers and wineries may not be satisfied with the outcome, he said.

"Both sides are realizing they have to make compromises and it's always tough to make compromises. It's challenging, but we're getting there."

George said the government was aware that all of the sector's issues could not be solved by the end of this month, and simply wanted to see progress.

"They wanted to see that both sides were willing to tackle the problems and solve the issues and they were satisfied with that."

Bradley said the government will give the industry the time it needs to come up with a plan.