Customers in British Columbia who used to buy liquor for cheap at their provincial liquor stores can no longer do so, except for a select non-Canadian few.
Just under a year ago, on Apr. 1, 2015, British Columbia’s Liquor Distribution Branch changed it’s buying policies. Previously, B.C. liquor stores were able to sell alcohol in bulk at a lower price to buyers referred to by the Liquor Distribution Branch as “special customers,” a list that included ship chandlers, consulates, and the Lieutenant Governor.
Now anyone who walks into a B.C liquor store will pay the same price as regular Joe Customer. These “special” buyers, and those who buy in bulk, will be directed to the Wholesale Customer Centre, where they will receive a similar discount as before.
Only one group is exempt from the changes in B.C.’s new liquor policy. According to documents received under the British Columbia freedom-of-information law, only members of NATO will continue to buy discounted liquor from 10 specific liquors stores in the province.
Viola Kaminski, senior communications officer for the BC Liquor Distribution Branch said that the reason for this exception was twofold. Firstly, she referred to the Visiting Forces and Visiting Forces Personnel Alcoholic Beverages Remission Order. This is a federal rule that stipulates that foreign military personnel must be offered discounts on alcohol purchases in Canada.
Secondly, Kaminski stated that most NATO members in B.C. are stationed on Vancouver Island. It was decided that it would be cheaper to allow the visiting officers to continue to buy from the selected liquor stores than to have the province pay to ship these customers over to the mainland to buy from the Wholesale Centre.
To be considered for a reduced rate in B.C., NATO members must go through a review process conducted jointly by the military and the Liquor Distribution branch. Foreign military officers in B.C., once registered for the discount, receive 40 per cent off wine and liquor, although there is no discount on beer.
Kaminski said that theses registrations were rare.
According to Kaminski, in B.C. there were 15 NATO members eligible for the discount in 2015, and only 13 registered NATO customers in 2014.
Last year, The Toronto Star printed an article claiming that over a 6-year period, $850,000 was lost in Ontario due to the NATO discount given at their provincial liquor stores. They recorded over 180 officers who received the discount, amounting to roughly 30 officers a year.
Kaminski did not reveal how much money was lost in B.C. per year due to the NATO discounts, but it seems that B.C. has been averaging half of the NATO members counted in Ontario each year.
Phillipe Brideau, a media relations officer from the Canada Revenue Agency, stated in an email that the discount given to foreign officers has been implemented since 1985 that combined different provincial laws of the same vein. Canada as a nation offers visiting officers alcoholic beverages free from federal duties and taxes.
According to Brideau, this is a courtesy that is granted to Canadian forces who visit other Commonwealth countries, countries part of the North Atlantic Treaty or countries listed in the Visiting Forces Act.
According to the documents received under freedom-of-information law, the money lost by selling to NATO customers will be reimbursed to the B.C liquor stores by the wholesale department.
Where they will get the money? That question remains unanswered.