Backgrounder

Report (847 KB)


- Sigma Analytics poll shows 72 per cent support liquor reform
- SLGA costs rising twice as fast as inflation
- Privatization would bring new jobs, businesses and attitude

REGINA: The Canadian Taxpayers Federation (CTF) is calling for the privatization of Saskatchewan's 81 government-owned liquor stores in the next provincial budget.

The CTF has released a report (available at www.taxpayer.com) indicating the province of Saskatchewan could benefit from hundreds of new small businesses and jobs. In Alberta, the number of liquor stores tripled in the first 18 months after privatization in 1993, creating thousands of new jobs.

"The biggest single reason for privatizing liquor stores is the great potential it has for creating jobs, businesses and a new Saskatchewan attitude," says CTF Saskatchewan director David MacLean. "People all over the province would experience, for the first time, the freedom and independence of business ownership. No longer would our SLGA employees be wage earners, they would be their own bosses."

The report directly refutes the myths about Alberta's privatization experience, namely, that it increased liquor consumption and incidents of impaired driving. Analysis of Statistics Canada data shows that Alberta has led the nation in the reduction of drunk driving incidents - reducing its rate by 70 per cent (Saskatchewan has reduced theirs by 47 per cent). Alberta has also reduced its overall consumption rate by three per cent since 1989 - the second largest reduction in Canada.

The report also features extensive price comparisons showing that beverage alcohol in every category is can be found cheaper in Alberta. Of the 119 products surveyed, 93 per cent cost less across the border - 100 per cent of beer, rum, whiskey and gin.

Soaring SLGA costs
The cost of operating the Saskatchewan Liquor and Gaming stores is rising twice as fast as inflation - with salaries as the biggest cost driver. Salaries have risen by 18 per cent (40 per cent for head office staff, and 18 per cent for store staff) since the 2000/01 fiscal year.

"The rising costs of operating liquor stores is unsustainable, and our politicians need to do the right thing and get out of the liquor retail business," said MacLean.

Sigma Analytics poll shows Saskatchewan residents are ready for privatization
In order to measure public support for liquor privatization, the CTF commissioned a Sigma Analytics poll between June 7 and June 11, 2004. The sample consisted of 693 completed interviews, and is accurate within 3.7 per cent, 19 times out of 20.

The poll indicates that 72 per cent of Saskatchewan residents believe that government should have no role in the liquor business, or that the government's role should be limited to wholesaling.