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'Time to end alcohol retail monopolies in Ontario'

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Art Mann

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The “quasi-monopoly” LCBO and The Beer Store have hosed Ontario consumers long enough, a C.D. Howe Institute report says.

The right-wing think tank said the Ontario government should strip them both of their almost exclusive right to sell beer, wine and spirits, suggesting the report proves that opening up to alcohol sales to competition will mean lower prices.

“The lack of competition in Ontario’s system for alcoholic beverage retailing causes higher prices for consumers and foregone government revenue,” states the 30-page report, Uncorking a Strange Brew: The Need for More Competition in Ontario’s Alcoholic Beverage Retailing System, to be released publicly Wednesday.

The report includes tables comparing Ontario beer prices to other provinces with greater private sector involvement, particularly with Quebec, where a case of 24 domestic beers can be as much as $10 cheaper and even more for imported brands.

Since 1927, when the Liquor Control Act was passed, the Liquor Control Board of Ontario and the privately owned Brewers Warehousing Company Limited have had a stranglehold on alcohol sale in the province.

“The Beer Store’s quasi-monopoly of beer retailing is . . . an anachronism,” the report says, referring to the foreign-owned private retailer that is protected by provincial legislation.

FULL STORY HERE
 
About time. If you've lived in Montreal you would know how much money you can save.
 
You really think they are going to give up their golden goose?.
 
Insanity for the province to relinquish the LCBO golden goose. It's a fuckin' voluntary tax.

Oh wait, they'd still collect the tax.

Actually, the biggest problem with privatizing LCBO would be the drive to commercialize by eliminating the fringe products.

Similarly, eliminating the Beer Store monopoly could produce the same ugly result.

Yes it would be great to nip out to the corner store at 3 a.m. while the party's still raging and pick up another case of beer, but really ... all they stock is Blue or Canadian?
 
The fact of the matter is, booze is the golden egg, lots of taxes on it everywhere, the LCBO doesn't need to exist at retail to make money. In fact, it's been postulated many times they would make even more money if they opened it up, as the per cap consumption is lower in Ontario than elsewhere. As a company, the LCBO is bloated, full of itself and ripe for a massive downsizing. Look at Alberta, Quebec, hell even the BC model is better for consumers.
 
The odd thing about the LCBO is that they claim to make over a billion dollars every year but any new LCBO build does not come from their budget but the government's coffers.
 
The LCBO is a money maker for the government why mess with it? The Harris government privatized the 407 and that was a whopping loser for the province. Privatization is not always the answer and if the LCBO wanted to they could use their buying power to reduce prices and all it would take is public pressure on the politicians and stopping them from trying to use it's for our own good bullshit.
 
Wishful thinking will never happen.

Politics and too money hands outs if you know what I mean.
 
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