Ontario has a alcohol monopoly just like the Scandinavian countries Sweden, Finland and Norway. Earlier this year an expert committee was appointed by the LCBO (Liquor control Board of Ontario) to review the benefits of the monopoly and its future. This is what the chairman of the committee says in his introduction to the final report that has just been published:
Begin quote
” The [current] system is inflexible and there are many anomalies and inequities. If we could go back to the drawing board, no one would design an ideal system this way.
… The challenge you put to us was to determine if the beverage alcohol system is delivering the maximum benefits to the people of Ontario. It is not.
The overriding government objective remains as valid today as it was in 1927 - to reduce the potential harm from beverage alcohol.
… Our conclusion: 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. In the 21 st century, government can protect the public interest just as well, if not better, through modern regulatory tools such as pricing policies and active enforcement.
… Monopolies lock up economic value, and uncompetitive markets hold back innovation and value creation, leaving untapped revenue "on the table." We believe this revenue, which we estimate to be in excess of $200 million annually, should accrue to the people of Ontario.
… We unanimously recommend that the government create a regulated, competitive market that would expand opportunities for producers, improve convenience and selection for consumers, extract the government from commercial risks and increase revenues for the public purse - all while protecting social responsibility.
… We conservatively estimate that, following a transition period, this plan would produce at least $200 million more government revenue than the government currently receives from the beverage alcohol system.
… After 78 years, action is long overdue.
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.
(Signed)
John Lacey
Chair”
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Read the full report here http://www.beveragealcoholreview.on.ca/. Your own comments here in the BKWine brief Blog...
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