Friday, July 18, 2008

Privatizing the LCBO is a Great Thing

Premier Harris says a re-elected Tory government might reconsider the idea of selling the province's liquor stores. The Conservatives promised to look at privatizing the LCBO in the last election. But they dropped the idea after Harris said the government would not get enough "bang for its buck." - cbc.ca, may 27 2008.
The concept of privatizing the LCBO is dear to my heart. Especially since i am from an area where alcohol is privatized, (Alberta) . There are so many different aspects i like and dislike about the LCBO, however there mostly dislikes! the only thing i like about the LCBO is the 'Around the World'. Thats where they have the international section in the LCBO and you can pick an choose an 8 pack made up of various beers of the world, mostly Europe. Another great aspect is the cleanness, and their large selection in wine, but i don't drink wine because wine is for people who are either old or snutty folk.
Aside from that I HATE the LCBO. Taking a page from my home town, alcohol privatization was decided by premier Klein, and in his most simple defense, it was largely due to the freedom of competition. He was a free thatcher ism, and a Reaganometallic supporter. Turns out Klein came out openly admitting that he was an ALCOHOLIC.
There are many reasons i love the idea of privatizing Alcohol. First of in a economic perspective, this now becomes another medium for people create small businesses. And for these people to become self sustaining, and provide motivation to excel, rather than having those high school graduates work at the communist regime the LCBO with no motivation to move ahead in their work.
Another reason is the open times. The LCBO closes at 11, that is so ridiculous. That doesn't give you enough time to get drunk at a bar, and decide to go to a liquor store afterwards for more. It pretty much means game is over when the tap runs dry. That i ssooooo ridiculous and makes life unworthy. In alberta, depending on the community; meaning the lower income areas, liquore stores are open till 2 am. That is capitalism right there. That owner is willing to stay up later to make more, and he is aiming those customers that want more at a lower cost, and people always want more.
Reason number 2, Since capitalism is in play, there would be more abundance of liquor stores. Back home, there are liquor stores at every plaza available. Here i have to take a 15 min bus ride in order to get to the nearest LCBO. And given that I'm a student, the freedom of a vehicle is not available. Liquor would be more easily accessible, and distance would not be a factor.
The last reason i HATE the LCBO is pricing, all the LCBO's have the same over priced liquor. Again capitalism would bring in best support for both the consumer and supplier. Competition amongst liquore stores would force them to lower prices, which would be great for us consumers, more specifically us poor university students.
Ever since i came here i never liked the LCBO and am still not a fan. Privatization all the way!!!

4 comments:

Junita said...

I can see where you’re in favour of privatizing LCBO but for the sake of argument, I would have to disagree. The first reason you pointed out was the idea of capitalism. I’m not exactly sure of how the government would be controlling the selling of the LCBO so I am going to make the assumption that the best offer wins. Whether the government decides to sell stores individually or the chain as a whole, there is a possibility that one buyer or one collective group of buyers can pool enough money to buy most of them, if not all. Putting potential government criteria aside, if the previous mentioned case were to happen, the LCBO would continue to become a monopoly unless another group big enough can start a new competing chain. Although it creates opportunities for people to develop new businesses, there would still be the problem with competing with such a big company. If LCBO were to lose a dramatic amount of customers due to the early closing hours, I am sure they would make changes to their store hours. Furthermore, it is still questionable as to whether a smaller store could be competing against such a huge chain. Suppose the smaller liquor stores can lower their prices. LCBO being as large as it is, would have even MORE capital and be even MORE able of lowering their prices. The war of prices is never a win-win situation because the smaller stores will always lose. They can’t compete. However, if the LCBO and the smaller stores were to combine together and start fix pricing, us consumers would be the ones holding the shorter end of the stick. All that said, these would only be the case should the assumption take place. If the government were to regulate the amount of LCBO stores that could be bought by one or a collective group of owners and so on, it would create a greater chance for competitive markets.

On another note, your argument about the LCBO being too far and not opening late enough, I think is actually a positive thing about the LCBO. The idea that the LCBO closes earlier promotes buying alcohol earlier in the day when people would usually prefer to be sober. This not only ensures the safety of the workers from inebriated customers, but also the safety of the consumers themselves from having to go to the liquor store already half drunk. Usually people who want to get inebriated already know what it takes and therefore they should be able to make a good estimate as to how much alcohol they need to purchase in order for it to do the trick. In terms of the LCBO being too far and being a student without a car, with what you stated I would think it’s more of an argument in favour of the LCBO remaining in the public sector. If students were to get drunk late in the night and wanted to go to the LCBO, being without a car they would have to take the bus. This is clearly a safer way of getting there than drinking and driving. I can’t speak for everyone, but most groups I know usually don’t have a designated driver. (We usually cab to wherever the party is after pre-drinking.) Honestly, who wants to miss out on all the fun?

Adam Penny said...

Awesome post Mathew, I hate the LCBO and love it too. I mean I’ve gone to school in the states for a little while and noticed the prices down there are ridiculously cheaper than here. 30 beers for $13 in the states - unreal. Here its $15 for the cheapest 12 pack. Did you know it costs more to make the liquor bottle than to make the liqs inside of it? Allowing corner stores and gas stations to sell alcohol all night long is an idea that Canada should entertain but must weigh the options of alcoholism vs. economic opportunity. This may create a lot more alcoholic related incidents throughout the nation. As well, the Canadian government may be taxing alcohol so much to deter consumers from consuming too much simply by keeping the prices at just the right level. This in turn may decrease the amount health care used on alcohol related illness/death which might overlap into your next post, so maybe you can thank the government for taxing alcohol as well.

Jeffrey Barillas said...

I can see why you hate the LCBO; however, I just can't understand why the government would want to get rid of that business.
They have a monopoly, and I am sure it is a good source of revenue for them.

Now, I know that you are all for having more liquor stores, but what about the consequences?

Does that mean that we are going to have more drunk teenagers walking around the streets late at night?

Do we really want people getting drunk at the bar and then going to get more?

I know we live in a capitalist society, and I am sure that if the sale of alcohol was privatized and more liquor stores were opened that they would get business, but do we really want that?

What does that say about us a society?

It seems like in a way we would be encouraging people to drink more, which I don't think is a good idea.

Erika said...

Although I am a fan of alcohol and would be very happy to see the prices lowered, I've got to agree with Junita on this one. I think it's really important that the LCBO closes early because it promotes responsible drinking by encouraging people to plan ahead when they plan to drink.

I also think that the LCBO, since it is run by the government, has very high standards when it comes to selling alcohol. It's not that easy for a minor to buy alcohol at the LCBO, although of course it's not unheard of. I just can't imagine that every local convenience store would have the integrity that the LCBO does. You see it all the time with cigarettes... Any 12-year old smoker knows about a store where he or she can buy their own smokes without any issues. I just think it all comes back to encouraging responsibility!