Amherstburg officials push back on restrictions tied to Diageo settlement funds

Diageo wants to approve what the town of Amherstburg can spend their settlement money on. CTV Windsor’s Chris Campbell has details.

Questions continue to swirl in Amherstburg over restrictions tied to a $500,000 settlement connected to the closure of the Diageo bottling plant, with local officials insisting the town — not the company — should decide how the money is spent.

The funding is part of a broader provincial settlement reached with Diageo following the closure of the Amherstburg facility, which resulted in the loss of about 165 jobs.

Amherstburg Deputy Mayor Chris Gibb said the money should ultimately be controlled by town council.

“I don’t believe it’s up to anybody but Amherstburg town council to determine the purpose of this $500,000 funding,” Gibb told CTV News. “This is money that’s been provided to the Town of Amherstburg based on a provincial agreement or a provincial negotiation. So, it’s entirely my intention that it is only up to Amherstburg Town Council where they feel in their wisdom it should be invested.”

Concerns were raised after reports emerged, suggesting Diageo may retain some influence over how the funds are used.

Gibb said residents deserve transparency following what he described as a devastating economic loss for the community.

“This has been, I would call, a traumatic experience to lose almost 200 good-paying jobs,” he said. “When the report came out and it talked about some of the restrictions that may be applied, I thought it was important for Amherstburg residents to know that Amherstburg Town Council is going to make sure that this money is invested where this community wants it invested.”

Gibb acknowledged there are expectations tied to the funding.

“There are things that Diageo would like to see and things they would not like to see,” he said, adding the company may have concerns around anything perceived as marketing toward children. “But again, it’s up to Amherstburg Town Council as representatives of people of where this money goes, where it’s invested.”

He also suggested council may revisit discussions with Diageo if necessary.

“I’m fully confident that Amherstburg Town Council will have the final decision in where this money is placed,” Gibb said. “Or we may have to go back to the drawing board with Diageo to discuss this further.”

Mayor Michael Prue said the agreement itself was negotiated through the province.

“Diageo made the deal with the province of Ontario. So, this was all orchestrated by the province of Ontario,” Prue said. “The wording is that $500,000 and only $500,000 will go to Amherstburg for something that Amherstburg chooses. So we’re going to choose it, and we’re going to tell them what we want.”

Prue, however, criticized the overall distribution of the province’s settlement funds.

“It was not,” Prue said when asked whether Amherstburg got a fair deal. “Twenty-three million dollars was given and only two per cent of that money came to Amherstburg. And that’s where all the job loss was. It’s where all the heartache and everything happened.”

Prue said he hopes the funds will honour workers affected by the closure.

“Although we got $500,000, it came at a very great cost to 165 people,” he said.

He added he has invited representatives connected to former Diageo workers to provide input on how the funding should be used.

Meanwhile, Anthony Leardi defended the agreement and emphasized that additional funding is also being directed toward the region.

“The premier specifically made sure that Amherstburg was included in the deal,” Leardi said.

Leardi said the agreement includes $500,000 directly for Amherstburg community projects and another $500,000 through Invest Windsor-Essex for economic development initiatives.

“That’s $1 million for Amherstburg to help Amherstburg develop economically and also culturally,” he said.

Leardi also encouraged collaboration between the municipality and Diageo moving forward.

“Diageo is putting up the $500,000. I’m sure they want to know where it’s going to be spent,” he said. “I think this should be a collaborative effort.”

Some residents have also expressed concerns about the arrangement.

Amherstburg resident Angie Tuovinen questioned why Diageo would continue to have influence after closing the facility.

“I think it’s interesting that they leave and leave this big hole in the community and that they still get to have a say,” she said.

Amherstburg resident David Deline also questioned whether Diageo should have any influence over the funding once the money is handed over to the municipality.

“The town councillors obviously know what to do best with half a million dollars,” Deline said. “But to get the okay from Diageo? I don’t feel that’s right.”

CTV News reached out to Diageo for comment but did not receive a response before publication.

Invest WindsorEssex also declined comment, stating, “As Invest WindsorEssex is also involved in project funding from Diageo we are not able to comment at this time, as the matter is before council for consideration and debate.”