12/02/2014 | 11:53 AM

Budget 2014: notes for foodservice

OTTAWA—Canadian beer makers caught a break in the latest federal budget tabled by finance minister Jim Flaherty on Tuesday.

The federal budget will modernize the beer standard and reduce red tape for brewers looking to add non-traditional ingredients.

Luke Harford, president of Beer Canada, said the change was necessary to keep pace with industry growth, adding that in 1990, there were 400 brands and there are currently more than 2,000 brands available to consumers.

“We must have the tools to innovate and compete in a fast-changing and vibrant category,” Harford said in a statement.

According to Beer Canada, the modernization of the beer standard will clear the path for innovative breweries by providing a clearer definition.

“For example, the Pump House Brewing Company experienced delays in launching its new ‘Blueberry Ale’ when it was determined that existing labelling standards for beer and ale would not permit both names on the label,” the budget stated.

Rickard’s experienced a similar delay when launching its Cardigan Seasonal Spiced Lager. Under the beer standard, the addition of nutmeg prompted questions as to whether the beverage could still be called beer.

Government officials have also announced that individuals will be allowed to move from province to province with beer, spirits and wine for personal use.

Budget addresses labour shortage

The budget points out that according to the Canadian Restaurant and Foodservices Association (CRFA) 36 per cent of restaurants in Canada report a labour shortage, and that this shortage is having a negative impact on growth.

While there were no plans directly linked to restaurants, the budget stated the government will invest $13.5 billion annually in skills training.

No relief from credit card fees

The CRFA is calling on the federal government to cap credit card fees, instead of seeking further consultation.

“CRFA is pleased the government recognizes that restaurants and other retail merchants are gouged by high credit card fees, which impacts prices for all Canadians,” CRFA president and chief executive officer Garth Whyte said in a statement.

According to a release, the CRFA is also “disappointed” the government has not blocked profits from taxes collected on behalf on credit card companies, which the organization says is a $40-million cost to the restaurant industry.

A recent CRFA survey showed that 93 per cent of members are “very concerned” about high credit card fees.