In my view, the Applicant’s submission on this point
ignores the text of s. 5(1)(d) and the structure of the regulatory
scheme as a whole.
 First, there is nothing in the text of s. 5(1)(d) that states
that the rules enacted pursuant to this section must be limited to
being merely “administrative” or “procedural”. The subsection
provides, in broad terms, that the VQAO may enact rules relating
to the issuance of approvals.
 Second, the broader regulatory scheme under the Act
(which has received ministerial approval) specifically contemplates that the VQAO “may refuse to issue an approval to a manufacturer for the use of terms, descriptions and designations set
out in Ontario Reg. 406/00 for a wine if . . . the wine fails to successfully pass the processes described in the rules made pursuant
to clause 5(1)(d) of the Act” (clause 6(1)(b) of O. Reg. 405/00).
The fact that O. Reg. 405/00 speaks of wine passing “processes”
supports the respondents’ position that the Approval Rules
were meant to contain substantive processes to ensure that the
requirements of Regulation 406 were met.
 Third, a reading of Regulation 406 and the Approval Rules
makes it clear that the two work together to perform different
functions. For example, with respect to icewine, Regulation 406
sets out that this is a regulated term and sets out a number of
requirements that must be met before a wine can be labelled as
“icewine”. These requirements are ultimately designed to ensure
that any bottle labelled as “icewine” was made according to the
processes usually associated with the production of that wine and
has the distinctive taste that consumers associate with “icewine”.
The Approval Rules provide two different processes that are
designed to ensure that the requirements of Regulation 406 have
been met — a laboratory analysis and a sensory evaluation
through a taste test. The taste test, as part of the overall approval
process, serves not as a quality standard, but as a quality assurance process. As such it was properly enacted under s. 5(1)(d) of
the Act and did not require ministerial approval.
 Fourth, the Applicant submits that the Approval Rules are
outside the jurisdiction of s. (5)(1)(d) of the Act because taste
tests evaluate wines for flaws and whether they are representative of a wine category, despite the fact that neither of these terms
are explicitly defined in the Quality Rules. However, this is an
issue that goes to the heart of the VQAO’s expertise as a regulator of Ontario’s appellation of origin system. The VQAO is best
placed to determine whether the terms, descriptions and designations set out in the Quality Rules reflect implicit standards or
conditions as they are regularly used in the wine industry. Since