where did they hide the file?

where did they hide the file?

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:

  1. the consumer would get greater convenience and choice and would benefit from a competitive retail environment;
  2. the government would remove itself from investment risk while increasing its annual revenues;
  3. Ontario would continue to benefit from sound social responsibility practices; and
  4. the existing commercial inequities would have been materially addressed.”

Sound like heresy. No doubt the government has muffled the privatization report because they were expecting fawning comments like “only government can be counted on to properly buy and sell booze” and “government officials should keep up their 70+ years of repressing Ontarians.” We at the Endthelcbo remind the Ontario government that its time to pay attention to its own recommendations and privatize the liquor business. Sign our petition to end the LCBO here.