Published in The Great North Arrow, July 15, 2024: If It Ain't Broke, Don't Fix It

- jim Young

“The incestuous relationship between government and big business thrives in the dark.” - Jack Anderson

Imagine reading the following story in your favourite newspaper.

“Tim Hortons CEO J. Patrick Doyle announced today that starting next month, Tim Hortons coffee and donuts would be available at McDonald’s. The decision to allow McDonald’s to sell the Tim Hortons brand at a lower price than can be purchased at Tim Hortons was made in an effort to make it more convenient for Tim Hortons fans to access their favourite coffee and donut treats. Acknowledging there would be a significant reduction in their revenue, Doyle said, ‘The convenience of our patrons is more important than either our profits or the job security of our employees and their families.’”

You would likely not be at all surprised to read this story in the newspaper the following day. “Tim Hortons shareholders are in an uproar over an irresponsible deal made with McDonald’s and demand the removal of CEO J. Patrick Doyle.”

But that’s exactly what Doug Ford is doing with the LCBO under the guise of “giving the people more choice and convenience.”

When has Doug Ford offered the taxpayers anything that didn’t benefit Doug Ford and his cronies?

Just how much convenience do you need and how much are you willing to pay for it? Doug Ford is willing to spend your money, a lot of your money, under the pretense of making the purchase of alcohol “more convenient” for you.

LCBO retail outlets already operate during the same basic retail hours as do most other retail outlets, so it can’t be the hours of operation that are a problem. And if it is, change their hours of operation. It’s a simple fix. 

There are currently 440 beer store locations in Ontario and another 450 grocery stores that are licensed to sell beer compared to only 667 LCBOs.

However, Doug Ford himself was quick to point out and offer the locations of 2,300 outlets (map available on the Ontario government website) in Ontario that are still open and available to purchase “beer, wine, cider, spirits or ready-to-drink beverages like coolers and seltzers” in spite of the LCBO retail outlets being closed and on strike.

So it doesn’t really seem that there is any real shortage of outlets for your alcoholic beverage of choice either.

To put it into perspective, there are fewer (2,043) Tim Hortons outlets in Ontario. Yet, most people don’t seem to have a problem getting their Timmie’s fix.

In remote areas where the population doesn’t justify the expense of operating a full LCBO retail outlet, LCBO Convenience Outlets such as Gerry’s General Store in Restoule and Trout Creek General Store already exist to sell both beer and liquor without compromising the revenue currently generated by the LCBO. 

If there really is an issue of convenient locations for the consumer, why not just license a few more of these operations and allow the LCBO to function as normal? Another simple fix.

Don’t give away the farm when you can sell your eggs at the end of your laneway.

On the other hand, what could it hurt to allow alcohol currently purchased at the LCBO to be sold in grocery and convenience stores?

Well, it could hurt you and I and it could hurt us a lot.

Much of the “sin” tax you pay on alcohol currently sold at the LCBO (up to 61.5% of the retail price) goes to Ontario health care and education, both of which are already sorely underfunded. 

Of course those taxes will still be in place when sold in grocery and convenience stores, so there’s no loss there.

But what Doug Ford seems to be glossing over is that the LCBO also generates $2.5 billion dollars in annual revenue for the Ontario government in addition to the money collected on taxes. It is inconceivable to think that revenue isn’t about to take a big hit. 

Ontario taxpayers are already on the hook for $225 million to the Beer Store as a penalty just for allowing “early implementation” of expanded alcohol sales in accordance with a previous contract.

What’s the rush Doug? Everything else aside, wouldn’t it be better to at least wait until the previously agreed upon implementation?

The CBC recently reported this move will also incur the following losses for the government of Ontario.

• $74 million per year to the large grocery chains by giving the agreed upon 10% wholesale discount. 

• $375 million to the Beer Store by rebating the LCBO's cost-of-service fees.

• $300 million in foregone revenue by not charging retailers a licensing fee.

Those amounts would be on top of the LCBO's lost revenue from selling less alcohol through its own stores and after the  $225 million payment to The Beer Store, adding up to at least $1 billion. 

How convenient is that?

Who, but a politician, would make a move that reduces financial aid to healthcare and education and try to convince the public, “It’s for your own good”?

Who, but a politician, would take a profitable business and pay millions of dollars just to give away future revenue? 

Jobs at the LCBO will be lost and it’s unlikely many jobs in the private sector will be created to replace them. Effectively Doug Ford is taking millions of dollars away from healthcare and education and just giving it to his wealthy big business friends.

That means more taxes for you and I and more profits for big business.

How convenient is that?

But then Doug’s wealthy friends aren’t likely to be as concerned about healthcare and education as you and I might be, are they? 

The LCBO is a crown corporation owned by the Government of Ontario. Essentially, that means the LCBO is owned by the taxpayers of Ontario. You could say we are the shareholders and Doug Ford is the President of the Board of Directors. 

Shouldn’t we be demanding accountability from those in charge of our crown corporations?

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