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Adopt a new Saskatchewan attitude by privatizing liquor stores

Author: David Maclean 2004/11/22
To many in Saskatchewan, "privatization" is a dirty word. For our province, it is a word that can win or lose elections. Politicians and organizations avoid using this word to side-step the emotional reaction it stirs, choosing instead to describe initiatives aimed at relinquishing state control of assets or operations as "public private partnerships" or "monetization."

In many cases, privatization ought to be embraced as a legitimate policy option aimed at economic growth, job creation and fostering a new Saskatchewan attitude. Our government-owned liquor stores are one of those cases.

Selling our publicly-owned liquor stores and allowing the free market to sell liquor in Saskatchewan would result in real economic growth. Hundreds of new private businesses and jobs would be created. The provincial treasury, if Canadian Taxpayers Federation's recommendations are accepted, would see net savings of nearly $8 million annually. Consumers would have more choice, convenience and better prices than ever before.

But if you listen to those opposed to liquor retail privatization, having privately-run liquor stores is a matter of life and death. According to the Saskatchewan Government Employees Union, our children will die on highways because of drunk drivers, and crime will skyrocket.

Fortunately, the facts aren't on their side. Statistics from around the world show that consumption does not measurably increase when liquor stores are sold off. In Alberta, per capita liquor consumption actually decreased since 1989 - four years before privatization.

Pay no mind to the fear-mongers. Allowing competition into the beverage alcohol market would bring immeasurable economic benefits while maintaining strong government regulation and social responsibility.

If Alberta is to be our guide, and there is no reason why it shouldn't, the number of liquor stores in Saskatchewan would triple after privatization, creating hundreds of new jobs.

The Canadian Taxpayers Federation has released a report calling on the government to reform liquor retailing. The report shows that government spending on the existing Saskatchewan liquor monopoly has jumped 20 per cent since 2000 (twice as fast as inflation) - largely due to unsustainable payroll increases. Salaries for liquor store employees have risen by 18 per cent since 2000-01, and top liquor bureaucrats have enjoyed a 40 per cent raise.

A low-level customer service representative makes $17.72 an hour - 136 per cent higher than individuals with similar jobs in other industries.

Expenditures of $8.5 million on major and minor liquor store construction projects, leasehold improvements and renovations since 2000 are misused tax dollars and not a core function of government.

Liquor privatization is a common sense initiative that would benefit the economy, the provincial treasury and consumers. So why wasn't this change adopted years ago Our politicians have made privatization a dirty word, stifling any rational debate on the subject. The Liberals, Saskatchewan Party and the NDP are all in firm agreement that such an initiative should not be pursued in Saskatchewan.

The kicker is that the people, as usual, are way ahead of the politicians. A province-wide poll commissioned by the CTF shows that 72 per cent of Saskatchewan residents believe that government should have no role whatsoever in the liquor business, or that roll should be limited to wholesaling.

It's time for all our politicians to get with the program and support an initiative aimed at growing the economy and creating a new Saskatchewan attitude.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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