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Saskatchewan unions distort facts on liquor privatization

Author: David Maclean 2003/08/11

When it comes to over-the-top propaganda, the only organization better than former Iraqi Information Minister Mohammed Saeed al-Sahaf is the Saskatchewan Government Employees Union (SGEU).

The SGEU recently launched a campaign to raise awareness about the evils of liquor privatization, and motivate their "brothers and sisters" to speak out against any hint of such an initiative. Part of their campaign is a "fact sheet" distributed to the media for talkshow fodder. Let's take a moment to review some of their "facts."

SGEU "fact" #1: Liquor store privatization means less government revenue for health, highways and education.

Alberta's switch to private liquor sales has been revenue neutral for government. The beauty of their privatization model is that the province maintains control over liquor distribution and its markup, meaning the province collects exactly the same amount of tax as they did under the government monopoly - without the capital costs and overhead related to operating liquor stores. In fact, the province has reduced taxes on alcohol four times since 1993 to keep their promise to Albertans that privatization wouldn't result in higher prices.

SGEU "fact" #2: Liquor prices are lower in Saskatchewan than in Alberta.

The SGEU lists several alcoholic beverages that are modestly cheaper in Saskatchewan than in Alberta. They are clearly cherry picking these items as the majority of products are cheaper there than here. Here are a few examples taken from Calgary-based OK Liquor. You might just as easily find better prices anywhere else in Alberta.

  • A case of Molson Canadian beer in Alberta will run you $16.98 (taxes and deposit in), and that same case will cost you $17.25 in Saskatchewan.
  • A 750-ml Bacardi White Rum is $21.99 in Saskatchewan while only $20.52 in Alberta. The same price difference applies to other spirits like vodka and gin.
  • Canadian Club whisky (750 ml) is $3.50 more expensive in Saskatchewan than it is in Alberta and a bottle of Crown Royal will cost you two bucks more at our government-owned liquor stores.


The bottom line is there are some cases where Saskatchewan liquor prices are better than Alberta's, but as a whole, prices are much better in Alberta. And don't let the unions tell you any different.

By opposing privatization the SGEU is against lower liquor prices for average Saskatchewan residents. We need to remember that liquor revenue isn't government money, it's OUR money, and we should be able to spend it as we see fit.

SGEU "fact" #3: Public liquor stores promote socially responsible sale of alcohol.

To support their statement, the SGEU cites crime statistics showing the number of infractions under the Liquor Control Act increased by 80 per cent between 1991 and 1995 in Alberta. That's one way of interpreting the numbers. When you take into consideration that the number of stores increased, the ratio of crimes per store has actually remained relatively constant, as have overall crime rates. According to the Calgary Police Service (CPS), crime rates related to liquor stores haven't changed much since before privatization.

SGEU "fact" #4: Public Liquor Stores offer excellent product selection.

Maybe if you compared our stores to those in Sudan. According to Alberta Liquor and Gaming, Alberta currently lists nearly 19,000 alcoholic beverages for sale. In Saskatchewan, they list a paltry 2,100 - that's a difference of 17,000.

SGEU "fact" #5: Public liquor stores offer good jobs with decent wages

You want to talk about jobs Since privatization, the number of jobs in the liquor retailing business increased from 1,300 to 4,000 in Alberta. In addition, the number of stores in Alberta jumped from 304 in 1993 to 907 fully private stores in 2001. And if you're concerned about wages remember that major grocery chains pay union wages. In fact, a private liquor market would be an opportunity for Saskatchewan unions to own and operate their own stores. The bottom line is that maintaining the government monopoly on liquor sales limits job growth and entrepreneurialism.


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