Winemakers challenge legislation

Published: 1:16PM Thursday May 15, 2003

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Cider and fruit winemakers want a re-think of the definitions of wine in proposed new legislation, saying the industry could be saddled with unnecessary costs.

The Primary Production Select Committee is currently considering the Wine Bill - legislation set up to provide a regulatory framework for the industry.

Brian Shanks, of the Fruit Wine and Cider Makers Association, told the committee that because wine is defined in the bill as made from grapes and other fruit - that includes cider, perry made from pear juice, honey mead and vegetable wine.

He says cider and other fruit wines should be taken out of the bill because it will mean 400 smaller volume producers are loaded with extra compliance costs that will make it impractical for many.

Brian Shanks says the costs suggested under the Wine Bill don't apply to beer and alco-pops, which gives them an unfair advantage over cider.

New Zealand Winegrowers chief executive, Philip Gregan, says all legislation and regulatory bodies, including the Food Standards Code, should define wine as grape wine and take other fruit and vegetable wine out of the equation.

He says a well intentioned move last week to slap an excise tax on sherries and ports shows the Government is reneging on a promise to consult with industry stakeholders before imposing the tax.

The tax increase was rushed through Parliament under extraordinary urgency in a bid to target teen binge drinking and included light spirits and fortified wines.

Two small winemakers made impassioned pleas to the select committee and said they had been gobsmacked by the sudden increase.

Shawn Brown of Martinborough said the tax would add yet another cost to his business that was already marginal.

And Zora Vitasovich of Landmark Wines in Henderson said the impact had already been felt on the retail side of her operation.

Philip Gregan says NZ Winegrowers won't support the bill if its request for manadatory consultation isn't met.

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