Impact: What Does a Monopolized System of Sales Mean for Ontario as a Whole?

According to the LCBO’s 2006/2007 annual report, consumers are most concerned with the sale of alcohol to underage youth (http://www.lcbo.com/aboutlcbo/annualreport2007.shtml). The International Centre for Alcohol Policies surveyed ministries of health, directors of health services, and key policy makers and found this same result on an international level. However, it is important to consider the voices we are listening to. In both of these surveys, one provincial and one international, adult LCBO customers and health and policy professionals are the ones deciding the importance of our current system. In addition, many health-oriented perspectives such as the Centre for Addictions and Mental Health advocate for the effectiveness to which our system decreases alcohol-related harms especially in preventing underage youth from accessing alcohol.

However, there have been efforts to change to a privatized system of sales to increase the financial benefits of alcohol sales. In 2005, the provincial government created a Beverage Alcohol System Review Panel to investigate the effects of our monopolized sales system. They found that there is much untapped economic value in privatization and that health/safety could continue to be ensured including the prevention sales to minors. However, the Minister of Finance strongly rejected this idea due to the amount of perceived social control that would be lost. However, the push for privatization continues on. In 2007, Bill 199 was created and had its first reading in attempt to amend the Liquor Control Act to allow the sale of domestic wine and beer in convenience stores. Supporters of this bill stated that these stores can operate under the LCBO’s watch and will add much income to small businesses. However, it has only passed its first reading.
(http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=1563&isCurrent=false&ParlSessionID=)

It appears that there is debate as to whether Ontario’s access to alcohol should be based on the social benefits of a crown corporation or the economic benefits of privatization. The impact of maintaining our current system appears to be that the values/beliefs of the consumers and policy makers are being met. Yet, there are unsettled opinions about the economic benefits that could be gained from a privatized system. Is it better to protect the perceived social well-being of our province by maintaining government control over the sales of alcohol? Or privatize to benefit the local business economy which also means depending on the local business owners to prevent the sale of alcohol to youth?