Iceberg water is frequently used throughout the province in products such as wine and beer.
The issue arose after Auk Island Winery, which produces ice-wine, took a stand against the fee.
There is a processing and licensing fee associated with iceberg water, but businesses are outraged by the radical increase in price, which was outlined in Budget 2016 but is only now taking affect.
Progressive Conservative MHA Steve Kent questioned the government about how it plans to help businesses facing the fees.
“How can you justify increasing the iceberg tax from $200 to $5,000? How does this tax help small business and support economic growth?” Kent asked.
Eddie Joyce, minister of Municipal Affairs and Environment and registrar general, said he has spoken to those affected.
“We had to put a value on water in some way, but we also have to initiate and help businesses,” Joyce said. “So I will be working with the industry on this issue.”
Joyce said his department is dealing with seven stakeholders. He expects that after the government has had time to review the issue, something will be done to improve the situation.
“I understand the hardships of a small business, with fees and things like that,” said Joyce.
He would not guarantee that the fees would be reversed to their previous amounts.
Danny Bath, of Auk Island Winery, and his business partner decided to take a stand.
“There needs to be more correspondence between government and licence owners. It’s an issue that fell between the cracks,” Bath said.
Auk Island Winery is located in Twillingate. Bath said icebergs are a large part of both the winery’s marketing and the local culture.
Iceberg products account for approximately 15 per cent of the winery’s sales, he said.
Bath said he was reassured by the minister’s handling of the issue. Joyce called him personally to outline a plan.
“I’m quite pleased,” Bath said. “It’s not every day that you have the minister’s ear.”
Twitter: @joshrjhealey
