The May 24 announcement of a deal by the Ontario government to expand sales of beer, wine, and mixed drinks is an obscene solution to a problem that is manufactured for political hubris. The announced deal will see the province hand over up to $225 million to The Beer Store. This is to “protect jobs” and subsidize that company keeping stores open to handle bottle and can returns. In exchange, by Halloween any convenience or big box store will be able to sell everything but spirits in their locations. This deal is not in the best interests of Ontarians for many reasons.
Ontarians may think that selling booze in another 9,000 stores across Ontario increases competition – it does not. The Beer Store and the LCBO still control prices under the new agreement. This includes wholesale prices and most discounts that can be offered. Only The Beer Store and the LCBO will be able to discount their own products. That is not ending a monopoly, it’s expanding it.
Prohibition ended in Ontario in 1927. It is no secret that the restrictive and monopolistic liquor laws in the province have been reformed little in the 97 years since. Premier Ford already had an option to further liberalize alcohol sales. The province’s Alcohol Master Framework Agreement expires at the end of 2025. Advancing this new agreement 19 months earlier than needed only provides a hand-out to international brewing conglomerates, not better value for Ontarians. This agreement has no value – except in scoring political points at our expense.
Ontario is still in a deficit position. The province has not tabled a balanced or surplus budget since 2009 – including the last six by the current Premier. This $225 million payout to three multi-billion dollar international brewing companies – Molson Coors, Labatt, and Sapporo – is inappropriate. To borrow that money and give as a corporate handout is obscene.
Contrary to Premier Ford’s belief, the province still has its “hallway health care” issues and there are millions of Ontarians do not have a family doctor. Inflationary pressures are still affecting millions more Ontarians. Housing costs and food costs are anything but fixed. The up-to-$225 million that the premier is gifting to the three owners of the The Beer Store can and should be used in any of these aforementioned places – or many more – to be helpful to Ontario families.
Premier Ford has a fixation with alcohol sales in Ontario. He was elected in 2018 partly on the ill-conceived promise of “buck-a-beer.” With Ontario’s problems not getting better, the timetable to move up easier access to beer, wine, and mixed drinks means we all can drown our sorrows instead. Being able to easily buy a six-pack from the local gas station, while families face housing and affordability issues and the continuing health care crisis, isn’t a solution that should be supported.