Login / RegisterPrivatization of liquor leads to higher prices in Washington state
Today, the B.C. government is expected to announce a short list of bidders for the Liquor Distribution Branch warehouse and distribution system.
Meanwhile, there's evidence south of the border in Washington that the privatization of state liquor sales quickly led to higher prices.
The move to increase the private sector's role came after an initiative passed in the November election. But now, the rising prices appear to be forcing people to leave the state to buy booze.
According to the Pacific Northwest Inlander and Associated Press, there was a 35 percent increase in liquor sales in Oregon along the Washington state border during the month of June.
Washington prices have reportedly gone up by 12 percent, according to AP.
The B.C. Government and Service Employees' Union president Darryl Walker has called for a moratorium on the privatization plan in this province. So far, the B.C. Liberals show no sign of backing down.
Follow Charlie Smith on Twitter at twitter.com/csmithstraight.
Oh yeah it's taking care of their Corporate friends before they get kicked out of office...
quote: "One explanation for why liquor prices may be higher under I-1183 (the law approved by voters to privatize) is that the law imposes a 17 percent fee on retailers and a 10 percent fee on distributors. (The distributor fee will drop to 5 percent after two years, but the retailer fee will stay as is.)
The law also requires distributors to make up the difference if their fees do not total $150 million by early 2013. ...
"In real terms, most retailers are charging more for the same items, and Costco is not," said Joel Benoliel, Costco senior vice president and chief legal counsel.
"We're being very careful to charge less, including taxes, than what people were paying in liquor stores. But we're sacrificing margin to do that. ..."
Whether prices go up or stay down means nothing to me (oh, and I drink).
What business does our government have selling booze?
Why should we allow our government to compete with private enterprise on any level?
If I had a good job with the LDB, I would probably fight for it too but this system is a relic from our past that has nothing to do with the role of governing.
The reason government stores can work in this case is the same reason single-payer government health insurance works: economies of scale. Private stores might do a better job of being creative and pushing the product, but that's not what I want here.
However, I find is fascinatiing that people more aware in preventing this from being privatized.
Yet, there is hardly any support from preventing Health Care from being privatized. An estimated of 150 transcriptions from the lower mainland are being laid off and jobs being shipped to the USA. Keeping Americans employed and our people unemployed.
Thanx the the Provinical Liberal Government of BC. And for the record, your private information will at risk for hacking.