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Government on Liquor Store Building Binge as Construction Costs Double

Author: David Maclean 2001/08/23
REGINA: It's not a drinking binge but a "building binge" for the government, as spending on liquor store construction in Saskatchewan has more than doubled over the past year. The information comes from the Saskatchewan Liquor and Gaming Authority (SLGA), and was obtained by the Canadian Taxpayers Federation (CTF) through Freedom of Information.

In 2000-2001, the SLGA spent $2.7 million on major construction, compared to $1.2 million last year, $1.6 million in 1998-1999, and only $179,000 in 1997-1998. (This does not include minor construction, maintenance, and repairs, or work on offices. When added this changes the above numbers to $2.9 million, $1.6 million, $1.9 million, and $322,665 respectively.)

"Private owners, not taxpayers, should be paying these capital costs," says Richard Truscott of the CTF. "Retailing is a job for retailers, not central planners. Let private business owners decide what kind of liquor stores to open, where to open them, and let them pay for it."

According to other documents obtained by the CTF through Freedom of Information, the SLGA estimates that selling the liquor stores would net the government at least $10-15 million. "If the government sold the liquor stores it could double or triple the $8.3 million in debt reduction the government budgeted for 2001-02," suggests Truscott.

Over the long term, the province would continue to get revenue through taxes on liquor, licensing, wholesaling, and normal taxes on store owners. According to a 1997 University of Alberta study, Alberta government revenues were not negatively affected by privatization.

According to that same study, when Alberta privatized its government-run liquor stores, product selection doubled and full-time employment tripled. "Private liquor retailing would be a huge opportunity for local business people, a boon for consumers throughout the province, and would put money in the province's coffers, says Truscott.

He adds, "Consumers benefit from better selection, more stores in more convenient locations, and better hours of operation. There would be more jobs. And business people in every corner of the province could benefit from being involved in a growing and profitable business."

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