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Taxpayers Suffer Hangover from Government Liquor Store Building Binge

Author: David Maclean 2002/07/08
REGINA: Data obtained by the Canadian Taxpayers Federation (CTF) from the Saskatchewan Liquor and Gaming Authority (SLGA) through Freedom of Information and released today confirms the construction and renovation tab for Saskatchewan's government-owned and operated liquor stores has swelled to more than $8.5 million over the past four years.

In the 2001-02 fiscal year, the SLGA spent $1.8 million on major construction and $258,782 for minor renovations bringing last year's total bill to over $2 million, compared to capital spending of only $322,665 in 1997-98 (see table below). In light of these recent figures, the CTF has renewed its call for the sale of the province's liquor stores to private entrepreneurs.

"Saskatchewan's taxpayers should not be suffering a hangover from construction costs in an industry which should, in actual fact, be run by the private sector," stated CTF Saskatchewan Director Richard Truscott. "The government needs to sober up, take a good hard look in the mirror, and come to its senses. Private owners, not taxpayers, should be paying these capital costs."

Last year, the CTF released information from the SLGA that showed the government would net $10-15 million from the sale of the liquor stores that could be used to pay down the province's debt. Research studies from other provinces show that private liquor retailing has been a boon for consumers, created more opportunities for local business people, and still allowed the province to generate similar levels of revenue through taxes on liquor, licensing, wholesaling and normal taxes on business owners.

Additional information recently obtained by the CTF through Freedom of Information revealed that the government's latest liquor store venture at the Regina Airport racked up $106,000 in losses last year before being closed in Feb 2002. "Retailing is a job for private entrepreneurs, not central planners," concluded Truscott.

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