Finally the right move on Saskatchewan liquor policy

One of Saskatchewan’s many claims to fame is that we were Canada’s first province, back in 1915, to ban the private sale of alcohol; with that, prohibition arrived.

At the same time, the provincial government took over the exclusive wholesaling of liquor, to which it still clings today.

So, finally, after griping for years on my radio show and in this column about Saskatchewan’s archaic and out of touch liquor retailing regime — and excessive reliance on government — Brad Wall’s Sask Party government has charted an interesting and quite surprising middle course.

I say surprising because until now Premier Wall has shown an aversion to actually devolving government liquor sales to private businesses.

Typically, governments in Saskatchewan — most of them of the socialist hue — have preferred the dual roles of regulating liquor laws and owning the vast, profitable and hydra-headed state-owned enterprise called the Saskatchewan Liquor and Gaming Authority (SLGA).

SLGA is a virtual booze empire that returns millions to government.

It owns and operates liquor stores, chooses who may become a private licensee, regulates the licensees, competes with them and, if that isn’t enough control, SLGA also sets liquor prices, collects taxes and even requires nongovernment alcohol sellers to buy their products from SLGA, which also happens to be the province’s exclusive wholesaler, distributor and even inbound shipping warehouse.

After making more than 75 detailed changes a few years ago to streamline liquor regulations, the Wall government promised more. And now, after a detailed consultation, it’s happened.

At the best of times, never mind an economic slowdown, the overriding proviso on this plan is that existing levels of government revenues have to be preserved in any overhaul.

Forty weaker performing stores of the government’s 75 liquor outlets will be sold to private operators and 12 new privately owned stores will be opened.

But more significantly, the new policy ends decades of SLGA tilting the table by charging different prices to different categories of licensed vendors. Now, every retail liquor seller, from government stores to local off-sales, will pay the same wholesale price to SLGA, which still takes the mark-up and the taxes.

As a student of moderate incrementalism, the Premier set the stage with a promise of no privatized stores when elected eight years ago — which frustrated his most loyal supporters — but then decided not to build any new government liquor stores, instead directing that all new stores would be tendered to private operators.

A dispassionate observer of Saskatchewan could be forgiven for wondering how the ideological position became so deeply rooted here that only government could be trusted to sell a six pack or bottle of wine or whiskey to a legally consenting adult.

The government’s strongest revenue position can be filled in taxing liquor and taking the initial — and large — price mark-up in the distributor to wholesaler stage. Also, government should never give up the regulatory regime over alcohol, from social policy to safety.

But there is no question that at the retail level there are positive effects of a competitive market in pricing, choice, product selection and customer convenience.

Freer and more open retail sales markets work for customers, the governments that tax the endeavour and the employers and employees who run private businesses.

While surveys consistently show that most Saskatchewan citizens support more private involvement in liquor retailing, ever so gradually the government has finally decided to take the plunge. Most people will greet this change not with rejoicing but the inevitable “it’s about time” shrug.

The Premier has made these changes contingent on his government being re-elected this spring. .

Several days ago, unions presented a petition to the government, signed by 20,000 people, opposing any privatizations.

Considering that 20,000 is a fraction of the population — and a small proportion of the roughly 168,000 people who generally vote NDP — liquor privatization ranks higher than any other field that government should be vacating.

It’s a sensible and long overdue policy. But expect a fierce political fight from its opponents.