Privatize LCBO

[nfq]

Good idea? Bad idea?
The 407 was sold off, look how well that turned out.

Ontario Progressive Conservative (PC) Leader Tim Hudak wants to privatize the LCBO and is also pushing for the provincial government to get out of the lottery business.

"It's time to end the LCBO and Beer Store monopolies," Hudak said at a news conference on Tuesday morning.

"It's about...treating people as adults in Ontario.”

Hudak said that a PC government would end the monopoly at the Liquor Control Board of Ontario, allowing beer and wine to be sold at corner stores. However, he said, the government would still collect taxes from the sale of alcohol.

NDP MPP Peter Tabuns argued Tuesday that the government made a lot of money from the LCBO and needed to retain that revenue stream.

"This idea has been examined by Mike Harris, who rejected the sale of the LCBO. Even Dalton McGuinty and Dwight Duncan decided not to sell it off, because too much money comes in for vital services," Tabuns said.

Hudak said the government would not build any more LCBO stores and would consider selling existing stores, including allowing employees to buy the stores. Tabuns criticized that plan.

"Anyone who comes here and says they're going to reduce the deficit and sell off profit-making activities, is blowing and sucking at the same time."

Other provinces, such as Alberta, British Columbia and Quebec, already allow private liquor sales.

On Monday, Hudak said that privatizing the Ontario Lottery and Gaming Corp. (OLG) would free up the provincial government to concentrate on other areas.

“I think people would rather see us investing in MRI scans, not buying new roulette wheels,” he said.

Instead, Hudak said, the government should regulate the industry.

Last year, the LCBO made $4.7 billion in sales. The provincial government reaped $1.66 billion in income thanks to Ontarians’ booze purchases.

Nearly $13 billion in LCBO dividends has gone to the province over the past decade.

 

[Scuba Steve]

Why sell a profit center for a short term gain, in other provinces selection has gone down and prices up seems like a bad idea.

 

[short stop]

As much as I like the idea of doing away with it, I'd like to see first how he'd plan to make up for lost revenue. A one time sale of the LCBO isn't going to provide a constant source of revenue.

 

[rich6969]

i think it's a great idea....work's in the usa, works in Quebec and we already have some store's in ont that have this system and works just great....

 

[CruisnGrrl]

i think it's a great idea....work's in the usa, works in Quebec and we already have some store's in ont that have this system and works just great....

Quebec still has saq, it's just beer and wine sold in corner stores there. While we don't have them in corner stored here we do have privatized beer and wine stores.


We won't see reduced prices so rather than the profits going back to Ontario they would be going to some rich guys pockets or out of the country into some multinational company run by bean counters. Look at the beer store, it's own mostly by the large beer companies which aren't Canadian any more.

So really why would we privatize this?

 

[gcrouse]

makes no sense to sell a profit making operation with all control. But then again ... it is government......

 

[nfq]

makes no sense to sell a profit making operation with all control. But then again ... it is government......

Don't forget wanting to privatize OLG as well.

 

[eljay]

You guys talk like the government has any right to the revenue.

 

[nfq]

You guys talk like the government has any right to the revenue.

This:

Last year, the LCBO made $4.7 billion in sales. The provincial government reaped $1.66 billion in income thanks to Ontarians’ booze purchases.

Once the LCBO goes, where is the government going to get the $1.6+ Billion ?

 

[CruisnGrrl]

This:

Once the LCBO goes, where is the government going to get the $1.6+ Billion ?

Higher taxes fines and fees

 

[CruisnGrrl]

You guys talk like the government has any right to the revenue.

Technically by the government reaping the profits I benefit from that, I'm ok with this. The money goes to covering less profitable services. I can drink to that.

 

[nfq]

My biggest worry would be lack of selection if it's fully privatized.

There'll be nothing but Canadian and Box wine.

 

[boarder360]

Prices wont be reduced, might as well have that money pay for stuff then have to raise taxes to make up the lost income. Like the op said the 407 sale is a prime example of this going south.

 

[Wingboy]

AND,the politician behind this says.....pick me,pick me,pick me!

 

[Paul1000RR]

Technically by the government reaping the profits I benefit from that, I'm ok with this. The money goes to covering less profitable services. I can drink to that.

i agree there, but since when is government supposed to be involved in retail sales?
shouldn't they be doing other things?

privatize it but leave the taxes the same. no overhead, no one to pay and still reap the benefits which is the tax revenue.

win win

 

[SunnY S]

Wasted thread.

Gov't will never give up a cash cow that is LCBO.

Next.

 

[crankcall]

LCBO is the largest purchaser of wine and spirits in the world. That is huge buying power.
Taxes wont come off booze regardless of who is selling it, selections will drop and prices wont be better.

LCBO hours are pretty good, and open sunday. If you cant plan ahead far enough you dont need a corner store for booze you should quit drinking.

 

[LiNK666]

Since when has the government listened to the average person and what kind of crack are you smoking imaging that the government is going to start now.

 

[deejizzle]

I like to think that my drinking habits help my fellow ontarians.

 

[klr_guy]

LCBO is the largest purchaser of wine and spirits in the world. That is huge buying power.

http://www.thestar.com/news/canada/...15--cohn-lcbo-s-pricing-policy-doesn-t-add-up

"Yes, liquor stores charge you top dollar. But to the auditor’s astonishment, the LCBO frequently gives a break to its suppliers by paying them a more generous wholesale price than winemakers expect — and more than the market dictates."

"It is simply one of those bizarre outcomes of bureaucracy gone awry. And a function of too much cash flow at one of the world’s biggest buyers of alcohol — a bounty that obscures the inefficiencies and price distortions that lie within."

"But here’s the question that left auditor general Jim McCarter scratching his head: Why not keep retail prices high (fulfilling its mandate) but still seek lower wholesale prices? By increasing its markup, the LCBO could pocket even higher profits to enrich its shareholders — you and me."

Yeah, awesome system there...