The July 2005 report “Strategy for Transforming Ontario’s Beverage Alcohol System” called for the privatization of the LCBO and the Beer Store. Commissioned by the McGuinty government in early 2005, it has gone ignored for 1156 days and counting. Probably hidden in some musty warehouse somewhere.
When it was first commissioned, finance minister Greg Sorbara commented: “This is an opportunity for impartial experts to undertake a comprehensive review of the industry and recommend ways it can work better.” Indeed the head of the task force was ex LCBO man John Lacey, former vice-chair of the board of the LCBO. Why has the government ignored its own group of admittedly impartial experts?
Just read some of the comments from the report:
“Monopolies lock up economic value, and uncompetitive markets hold back innovation and value creation, leaving untapped revenue ‘on the table.'”
“…in order to ensure the socially responsible sale and use of beverage alcohol, it is not necessary for government to own and operate retail and wholesale facilities itself.”
“Currently the LCBO decides what products to carry, and tends to favour those that generate a high sales volume. Wineries and distilleries producing small volumes or specializing in niche products have few options if their offerings are not listed. The same goes for import agents representing foreign products. The new system would change this by replacing the LCBO‘s monopoly with an array of new retail and wholesale channels.”
“Some may prefer to keep the system as it is and muddle through. This, however, would solidify the existing vested interests and make it much harder to effect change in the future. After 78 years, action is long overdue. It is time to transform Ontario’s beverage alcohol system. I close with what I believe are the real outcomes of our recommendations:
- the consumer would get greater convenience and choice and would benefit from a competitive retail environment;
- the government would remove itself from investment risk while increasing its annual revenues;
- Ontario would continue to benefit from sound social responsibility practices; and
- the existing commercial inequities would have been materially addressed.”
October 6, 2008 at 8:37 pm
what you forgot to mention is that greg sorbara dismissed the report outright WITHIN 20 MINUTES of its release. Essentially saying that regardless of the reports conclusions there is no interest in privatization. So why spend $200K on a report?????!!!!
The LCBO is a cash cow that will never be a political hill to die on as long as the masses think it’s the cats ass. A semi private system similar to BC of, better yet, Manitoba, its the way to go…but as long as we think that the tax we pay “aka markup” is acceptable we’ll get a crap product at 200% of the REAL price.