Canada: Full speed ahead for liquor privatization
Regina Leader-Post
By Todd Mackay
April 13, 2016
People don’t need the government’s help to buy or sell a beer.
That statement is so obvious it seems strange that it’s been a point of contention for so long, but as of April 4, 2016, that debate is officially over: Saskatchewanians are absolutely fine with privatizing the provincial liquor system.
The Saskatchewan Party was crystal clear about its intention to move steadily toward liquor privatization long before the election — there was no hidden agenda.
First, the government announced it would level the playing field so that off-sales, private stores and government stores would all have the same regulations and the same wholesale prices. No more stupid rules about who can’t sell cold beer and no more forcing off-sales to get their supplies at sky-high prices. The playing field will be level so private stores and government stores can compete to give customers the best service.
Second, the government will shut down 40 of its least-profitable stores and transition them to the private sector.
The only thing more obvious than the Sask. Party’s position was the opposition to it.
The NDP’s platform plank regarding the liquor system came under the heading “stop privatization.” It proposed to put more beer fridges in government stores, sell more local beer and consider setting up government kiosks in grocery stores. But it, too, was crystal clear: it was the NDP’s priority to keep liquor sales in the hands of government employees.
And the Saskatchewan Government and General Employees Union must have spent millions on TV ads and mail-outs to amplify that message.
The other side was comparatively quiet. Small-town hotels that run off-sales didn’t buy ads. Neither did the new private stores. Even the Canadian Taxpayers Federation didn’t say much despite the fact that we’ve spent decades on this issue and pushed the specific recommendations that formed the foundation of the government’s proposed policy.
What did SGEU members get out of all of the union dues plowed into the one-sided debate?
The government plans to turn the Battlefords liquor store over to the private sector — if the people there are outraged it didn’t show up at the ballot box, as support for the government went up by more than nine per cent in that constituency compared to the last election.
Another one of the 40 stores transitioning to the private sector is in Lloydminster and the government’s support went up by 20 per cent in that riding. Surely the riding of Regina Elphinstone-Centre would register more of a backlash because the Broad Street liquor store is on the list, but the NDP support only ticked up by two per cent.
This specific issue has been thoroughly debated. The government made its position clear. The opposition made its position clear. And the people made a clear choice.
Where do we go from here?
The question is no longer whether government should get out of the booze business, but rather, how and how quickly? The current policy of levelling the playing field for both private and government stores is a great start. Closing the least-profitable government stores to make room for new private stores is another important step.
But there’s more to be done. The provincial government still monopolizes liquor warehousing. It’s a choke point for supply chains, especially for specialty products. This is silly. A government-owned booze warehouse makes about as much sense as a government-owned box factory or a government-owned potato company. Change will take time and may even require new legislation, but the government has a clear mandate to move forward.
There is a role for government regarding liquor. Government should regulate liquor. And, whether we like it or not, government will always tax liquor. But the people have spoken: government shouldn’t be in the business of selling liquor.