Changes Coming To Newfoundland and Labrador Liquor Corporation

Today, the Honourable Tom Osborne, Minister of Finance and President of Treasury Board, introduced amendments to the Liquor Corporation Act to realign the governance structure of the Newfoundland and Labrador Liquor Corporation (NLC) to better reflect the current operational realities of the corporation.

Currently, the NLC Board consists of a maximum of seven appointed members, including the President and CEO of the NLC and a government appointee, all of whom are voting members. With these changes, the structure of the board will now feature a minimum of five voting members and a maximum of nine voting members. This added flexibility will allow for adjustments to the board based on operational need.

Furthermore, going forward the President and CEO of the NLC and the Deputy Minister of Finance (or designate) will be automatically appointed to the board by virtue of their positions, but will now be non-voting members of the board. This change is being made to avoid any potential conflicts of interest that could arise from the automatic inclusion of the Deputy Minister on the Board, and to recognize that the President and CEO of the NLC reports to the Board of Directors.

Other changes introduced through these amendments include:

• Allowing for the re-appointment of board members upon the expiration of their terms, should government wish to maintain continuity among board members;
• Allowing existing board members to continue in their role after the expiration of their terms until they are replaced or reappointed, to maintain the ongoing operations of the board during transition;
• Setting quorum for the board as the majority of voting members; and
• Clarifying language in the Act such that the President and CEO of the NLC is appointed via the Independent Appointments Process.

These changes align the governance structure of the NLC with the intent of the Independent Appointments Commission Act, and ensure continuity and effective operations for the NLC Board of Directors. They also reflect the expansion of the NLC’s mandate to include oversight of recreational cannabis, and the added complexity of NLC operations as a result this new business line.

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“The NLC Board of Directors has done an exceptional job over the past year overcoming the challenges from an expanded mandate with the legalization of recreational cannabis. The changes we are making today will ensure that this board remains effective in the continued oversight of this new mandate.”
Honourable Tom Osborne
Minister of Finance and President of Treasury Board