Provincial auditor Tara Clemett says Saskatchewan’s quality assurance needs a closer look. Some permits have expired along with sales information needs a closer inspection and the Liquor and Gaming Authority isn’t paying close enough attention.
Clemett released a report earlier this month and the first part of her 2022 annual report states that sales of craft alcohol have nearly doubled from 2017-18 to 2020-21. As of November, 64 craft alcohol producers had permits in Saskatchewan.
Clemett found quality assurance to be lacking. SLGA requires producers’ certificates of analysis or lab test reports displaying product safety every two years. The audit found that 43 of 83 product lines needed updated certificates.
It found producers had missed deadlines and the SLGA did not follow up. The audit found some certificates were nine months past the required deadline.
“Effective regulation of craft alcohol production reduces the risk of the public consuming unsafe alcohol or alcohol inconsistent with labelling,” Clemett said.
The report also found that the SLGA did not “use a risk-based approach” to inspections of producers and “high-risk manufacturing areas.”
According to the audit, there are 64 permitted producers, but the SLGA did 10 inspections and 24 pre-permit inspections and had not inspected one producer in the past three years.
“Receiving regular lab test reports and regularly inspecting high-risk areas specific to craft alcohol helps protect the public,” Clemett said.
“Producer permits expire after three years; four craft alcohol producers operated without a valid permit during our audit period,” the report said.
“Without the information, how do you know if there may be issues?” her report said.
Production levies collected by the authority increased from $360,000 in 2016-17 to $2 million in 2020-21, according to the report.
“As a growing industry, it’s important for producers to comply with policies and submit accurate reports,” Clemett said.
It is important that government authorities do their part to keep the industry in line and on top of things, in order for consumers to feel confident about supporting local businesses, the MLA for Regina University added.
“I am perhaps too well known for my enthusiastic support of some of our wonderful craft brewers in the province,” she said.
“I think what we see is a burgeoning and dynamic industry and with that comes added oversight…. But it’s also important for this government to take a do-no-harm approach.”
“Government doesn’t always keep pace with industry. So I think that’s more than a valid comment that the auditor had to make,” said Mark Heise, the president of Rebellion Brewing in Regina, regarding how the sector is growing so quickly.
“Clearly the SLGA … has not been able to keep up with their inspections and all that sort of stuff,” said Heise.
“It doesn’t mean they’re bad, that people are just lazy. They’re short staffed. They maybe don’t have the right skill sets needed to properly regulate manufacturing of alcohol,” he said.
“So there’s definitely room for improvement.”