I do not have any response to that, Mr. Chairman.

Any other general comments? Does the committee agree that this matter is stood down? Agreed?

Agreed.

---Agreed

Thank you, Mr. Minister. Ms. Peterson, thank you for your presence. Without question this matter is not concluded. We may, through the Minister, be inviting you to return to deal with this matter again. Thank you very much, I appreciate your attendance.

What is the wish of the committee? Mr. Koe.

Are we agreed that we deal with Bill 9?

Agreed.

---Agreed

Thank you. We will be dealing with private Member's public bill, Bill 9, an Act to Amend the Liquor Act. Mr. Lewis, do you have any general comments?

Thank you, Mr. Chairman, and also Members for allowing me to proceed this afternoon because my legal counsel would not be available to me on Monday and it would have made it very difficult to conclude this business. The only comment that I have to make in opening, Mr. Chairman, is that the work on this bill began in 1988. It has taken a long time to bring it into the committee so it can be examined in detail. I would like to invite my legal counsel to assist me on technical matters, Virginia Schuler.

Thank you. Is it agreed that we invite the witness?

Agreed.

---Agreed

Thank you. Sergeant-at-Arms, could you escort the witness in, please? Mr. Lewis, for the record, could you introduce the witness, please?

Thank you, Mr. Chairman. I have with me today my legal counsel, Virginia Schuler.

Thank you. Chairman of the Standing Committee on Legislation.

Standing Committee On Legislation Comments

Thank you, Mr. Chairman. The Standing Committee on Legislation has had a long history with this particular bill. The honourable Member for Yellowknife Centre, Mr. Brian Lewis, first introduced Bill 26 during the Second Session of the 12th Legislative Assembly. The private Member's public bill would have amended the Liquor Act to allow the establishment of commercial breweries. The Standing Committee on Legislation held public hearings on Bill 26 on May 26, 1992, and recommended a number of changes. The draft of a revised bill was tabled in the House on September 29, 1992, in order to allow further public review

prior to the third session. This was referred to the Standing Committee on Legislation by a formal motion of the House on October 1, 1992. The Standing Committee on Legislation held public hearings on the tabled draft bill on October 22, 1992.

While many of the previous concerns of the committee had been addressed, a number of significant issues remained outstanding and were reported to this House in Committee Report 2-12(3) tabled on November 23, 1992. In its report, the committee made further recommendations for changes to the proposed legislation.

Bill 9, a private Member's public bill, was introduced during the third session by Mr. Lewis. This bill received first and second reading on November 25, 1992, and the committee reviewed this bill during public meetings on November 30, December 1 and December 2, 1992. The Members of the committee wish to note that the sponsor of Bill 9, Mr. Lewis, responded seriously to the concerns and recommendations of the committee. Many of the changes recommended by the committee were incorporated within the new bill, and our experience has provided a good example of the way a thorough committee review can enhance the legislative process.

The committee is also grateful to Ms. Virginia Schuler, Q.C., for appearing as Mr. Lewis' legal counsel on a number of occasions. Also, the committee wishes to acknowledge the public input received. As well, the committee appreciates the appearance and assistance of officials from the Department of Safety and Public Services and from the Department of Justice.

Bill 9 would amend the existing Liquor Act to allow for the establishment of commercial breweries within the Northwest Territories. This bill would make it legal for a person or a corporation to manufacture beer in the Northwest Territories. The person would be required to obtain a permit from the Liquor Licensing Board first. The beer manufactured under the permit could only be sold to the Liquor Commission or to the public under a brew pub licence granted by the Liquor Licensing Board. Regulations would provide for the inspection of breweries, and the bill would allow an inspector to suspend the operation of a brewery if there was a serious contravention of the act or if it was in the public interest. This bill would include a provision that a brewery permit could not be granted without the approval of the local government most closely affected.

The committee was supportive of this community consultation but felt that in the case where more than one community would be affected by the application, the views of the other affected communities should be considered by the board as well. The new legislative process approved earlier by the 12th Assembly includes a procedure whereby bills can be amended at the committee stage. At its meeting on December 2, the Standing Committee on Legislation invoked this procedure and carried a motion to amend Bill 9 to incorporate the committee's recommendation that the views of other affected communities be considered by the board when considering an application for a brewery permit. Under the new legislative process, the concurrence of the sponsor of the bill is required before a bill can be amended at the committee stage. Mr. Lewis concurred with the committee's motion to amend Bill 9.

Therefore, the bill that is before the honourable Members today differs from the one voted by this House at second reading. Bill 9 has also been amended in one additional area. Originally, the bill would have required one form of government in the community to be notified of the application for a brewery permit. However, the committee was concerned that in communities where there are both a band council and a community council, both councils should have an equal right to notification. Bill 9 was also amended to include this recommendation with the concurrence of the sponsor.

There were two remaining areas of concern to the committee which Members may wish to comment on. Bill 9 departed from earlier drafts in that it placed the authority to issue or revoke permits directly with the Liquor Licensing Board rather than with the Commissioner. Questions were raised by the Law Clerk and by Members as to the validity of such a scheme in light of the provision in the federal Northwest Territories Act which prohibits a manufacture of intoxicants without the permission of the Commissioner.

The committee appreciates the attendance and written comments of the deputy minister of Justice who indicated that these provisions were recommended and supported by the department. As well, as noted in Committee Report 2-12(3), the standing committee is concerned that there might be some potential for this bill to be misconstrued as applying to the illegal manufacture of home brewed alcohol. The committee encourages the sponsor and the relevant departments and agencies to ensure that public information about this proposed legislation draws a clear distinction between the manufacture of beer under brewery permits and the unlawful preparation of alcohol. This concludes my remarks, Mr. Chairman. I invite other committee Members to make any additional comments on this bill.

Thank you. Are there any other general comments? Mr. Lewis.

I have no additional comments, Mr. Chairman.

Thank you. Does the committee agree that we go clause by clause?

Agreed.

---Agreed

Clause By Clause

Thank you. Clause 1.

Agreed.

---Agreed

Thank you. Clause 2.

Agreed.

---Agreed

Thank you. Clause 3.