Festivals feel squeezed by alcohol permit price hike

Smaller festivals are reconsidering the sale of alcohol at their venues after theAlcohol and Gaming Commission of Ontario increased the price of special events permits to $150 a day.

As of April 1, festivals and other events in Ontario, big or small, wouldhave to pay $450 for a three-day festival to receive a special events permit allowing the sale of alcohol. Prior to the change, they paid $75 for three days.

It raises a question I'mgoing to have to think aboutvery carefully.- RobertNesbitt,Ottawa Grassroots Festival founder

RobertNesbitt, the founder of the Ottawa Grassroots Festival,says the "shocking" price increase will affect many small festivals in the city that rely on alcohol salesto help cover costs.

"I just can't see the logic of charging a small festival the same as a large festival," Nesbitt said Wednesday.

"Alarge festival won't even notice the difference but a small festivalwill."

TheOttawa Grassroots Festival relies on public grants to survive and will find it difficult to offset the new costs, Nesbittsaid.

"Some of them[other festivals] may drop the sale of alcohol it may not be worth it for them to do it," Nesbitt said.

"Whether it's worth it or not it raises a question I'mgoing to have to think aboutvery carefully."

First change in 15 years

The price hike is the first in 15 years, according to aspokesperson forthe Alcohol and Gaming Commission of Ontario.

In addition to the fee change, the commission now requires all applications for special occasion permits to be made online.

"The AGCO charges a fee for [special occasion permits]in order to recover a portion of the cost of administrative and compliance related activities as well as to ensure that alcohol is being served and sold safely and responsibly," Ray Kahnert, the commission's spokesperson, wrote in an email.

"There is a general move by governments to charge fees that better reflect the cost of regulation."

'It's something we need to do'

Kevin Hurtubise, founder of theOrlans Craft Beer Festival, said he paid around $450 for the permit this year, adding that for his festival there was no other way around it.

"It's a necessarystep in the process," he said Wednesday. "It has to be digested."

"Our focus is the beer soit's something we need to do. It would make me reconsider having alcohol at another event if it was on a smaller scale for sure."

Permit pricesalso increased forevents where alcohol is served without charge such as weddings and birthday parties. However, unlike the sale permit price, the $25 increase for those gatherings will be implemented, in phases, over the next three years.