Supplementary Memo - BC Liquor Privatization

Supplementary Memo

The provincial government’s recent surprise announcement to privatise the province’s two Liquor Distribution Branch (LDB) warehouses will drastically reduce annual revenues to government coffers.

When questioned, the BC Finance Minister Kevin Falcon did not rule out future full privatisation of the LDB, similar to their privatisation attempt in 2002/03.

Similar policy changes in Alberta led to a tripling of the number of liquor stores and caused the Calgary and Edmonton police departments to report significant increases in alcohol-related crimes.

A BC Ministry of Health report has recommended that

• government-run retail stores serve as the exclusive distributors of alcohol from a public health perspective, and
• a moratorium be placed on new private stores and restrictions on the growth in number of agency stores, in particular due to concerns with youth access to alcohol.

The Liquor Control and Licensing Branch conducted a pre-announced audit of over 800 stores, public and private in 2008, and found that private stores are much less likely to request ID from customers who appeared under the age of 25 than public stores.

Additionally, studies show that other liquor privatizations have led to higher consumer prices, more stores with less selection, and marginalized workers.

If these concerns are not addressed, the responsibility for more policing costs as well as those for health and social services may be downloaded to local governments.