Amherstburg's deputy mayor has expressed strong opposition to the town's obligation to consult with global alcohol company Diageo on how to spend $500,000 from a provincial settlement related to the closure of its Crown Royal bottling plant.
Deputy Mayor's Reaction
Chris Gibb stated that the money should belong to the people of Amherstburg and questioned why the company needed to be consulted at all. In a Facebook post, he wrote, "Now the Town may have to seek Diageo's approval before spending the money? I don't know about you, but I find that deeply concerning and, frankly, insulting."
Background of the Settlement
Diageo shuttered its bottling plant earlier this year, resulting in the layoff of approximately 200 employees. In February, the company reached a $23-million settlement with the province to ensure its products remain available at the LCBO. Premier Doug Ford had previously threatened to remove Crown Royal whiskey from LCBO shelves.
As part of the agreement, the Town of Amherstburg was allocated $500,000. Additionally, Invest WindsorEssex received $500,000 for economic development focused on Amherstburg and the surrounding area. The remainder of the settlement was designated for other regions of the province.
Council Report and Consultation Requirement
A report from town administration, scheduled for council discussion on May 25, requests direction on spending the funds and notes that Diageo must be consulted. According to the report, once direction is provided, "Diageo will require a submission outlining the project for them for review and determination of next steps." This may include meetings with administration or council, alignment of timelines, drafting a memorandum of understanding, and discussing potential public relations events.
Gibb's Stance
Gibb disagrees with the need for consultation. "Our residents, businesses, and community were the ones affected," he wrote. "Council should decide how these funds are used based on what is best for Amherstburg — not have to seek the approval of a multinational corporation that turned its back on our town."
In an interview, Gibb expressed hope that this does not become a larger issue between the town and Diageo, emphasizing that the company has left the community and should not influence how the funds are invested.
Mayor's Perspective
Mayor Michael Prue commented that the deal was orchestrated by the province. He noted that the wording specifies $500,000 will go to Amherstburg for something the town chooses. "We're going to choose it, and we're going to tell them what we want," he said.
Prue also remarked that the deal was not favorable for Amherstburg, as only two percent of the $23 million came to the town, despite being the location where the closure caused significant hardship.
