Published on 1 Aug 2016
Ernest Shackelton set sail for the Antarctic when most young men in Europe were setting sail to fight a war. While millions of them died, he was completely isolated trying to survive the harsh conditions. Shackelton’s expediton was probably one of the last grand ventures from the age of wonder and when he reached civilisation again, the world had truly gone mad.
August 2, 2016
The Great Explorer – Ernest Shackleton I WHO DID WHAT IN WW1?
The Old Third Vineyards wins their appeal against the VQA
The Ontario government granted the Vintner’s Quality Alliance (VQA) some regulatory power to police the marketing and labelling of wines made in Ontario, including (the VQA thought) the rights to restrict the use of certain geographical designators like “Ontario” and “Prince Edward County” to VQA-compliant wineries. In a recent decision, a non-VQA winery located in Prince Edward County won an appeal against the VQA’s over-restrictive order:
Yesterday (July 28, 2016) was a big day for The Old Third Vineyards, a small, boutique winery located in Prince Edward County. The Licence Appeal Tribunal ruled in their favour against the Vintner’s Quality Alliance Ontario (VQAO) compliance order that they remove “Prince Edward County” from The Old Third website.
The Old Third Vineyard is located in Prince Edward County. It is owned and operated by winemaker Bruno François and Jens Korberg. They make Pinot Noir and Cabernet Franc wines, sold from their estates. Their wines have received ratings of 90 points or higher by esteemed wine experts Jamie Goode, John Szabo and Quench’s own Rick VanSickle. Each vintage – only one per year per variety – is bottled with a wine label that reads “Product of Canada”.
However, their website has a heading tagline that reads “Producers of fine wine and cider in Prince Edward County.” This is an issue for the VQA.
On February 3, 2016, VQA compliance officer Susan Piovesan emailed The Old Third with regards to the use of the geographic designation “Prince Edward County” on their website.
In other words, the VQA wanted to prevent the Old Third Vineyards from even revealing where in the country they were located because the legal designator for that area is also a restricted term for use by the VQA’s own wineries on wine bottle labels. Old Third wasn’t using it on a label, but as any common sense interpretation would agree, they have to indicate where customers can find them if they want to sell much of their wine … and they’re physically located in Prince Edward County, and said that on their website.
The VQA argued that The Old Third are trying to monopolize on the value the VQA has added to the term “Prince Edward County” by making it an official wine designation. The Tribunal disagreed: “The information conveyed in the banner … locates it geographically. Giving the words, in context, their ordinary meaning, they do not convey that the Appellant produces a Prince Edward County wine.”
The Tribunal’s ruling in favour of The Old Third shows that, even if an organization that regulates wine believes they own a term or regional name, it doesn’t mean they have the right to enforce their designations on those wineries that don’t wish to buy into the designation. The Old Third is a small vineyard in Prince Edward County and it will most likely remain that way.
And it’s these small wineries that first put Prince Edward County on the wine scene – there wouldn’t be a VQA designation for Prince Edward County if it weren’t for the wineries and estates that were producing quality wines long before the VQA came around in 2007: Waupoos Winery, The Grange of Prince Edward Vineyards and Winery, Casa-Dea Estates Winery, By Chadsey’s Cairns Winery, Sandbanks Estates Winery… the list goes on (and on).
QotD: The deadweight costs of different forms of taxation
All taxes have something called a “deadweight cost”. This is simply economic activity that doesn’t happen because of the simple fact that we’re levying a tax. If we tax the purchase of apples then fewer apples will be purchased. This is entirely divorced, by the way, from any good that might be achieved by how we spend that revenue collected. We also know that different taxes have different deadweight costs. We even have a ranking of them. At the top, with the highest costs for the revenue collected, we’ve transactions taxes like the financial transactions tax under consideration. This is so expensive that it’s a really, really, bad idea to tax in this manner. Then come capital and corporate taxes, then with lower again deadweights incomes taxes, then consumption and then finally repeated taxes on real property, or land value taxation. If we were interested only in efficiency (we’re not, equity is important too) then we would collect as much as we could from a land value tax, then from Pigou and sin taxes (carbon emissions, cigarettes, booze) then general consumption taxes and so on. Perhaps leaving corporates and capital entirely untaxed. And there’s a whole field of study, optimal taxation theory, that suggests that we really should do that and the general prescription is the progressive consumption tax. There’s general agreement that on purely those efficiency grounds this is about the best we can do with a tax system.
Tim Worstall, “Surprisingly Perhaps, State Republicans Are Actually Correct On The Economics Of This”, Forbes, 2015-02-14.