Private vs. public liquor
Re: LCBO Defends Itself, letter to the editor, Oct. 7. Chris Layton, media relations co-ordinator of the Liquor Control Board of Ontario (LCBO), doesn’t contradict any fact put forward by the Montreal Economic Institute (MEI), but instead offers other, less relevant numbers.
The figure of 779 outlets in Ontario was taken from the LCBO Annual Report 2004. We did not include the Beer stores, winery stores, etc., because from the consumer’s point of view these obviously cannot be considered on the same footing: They sell only beer or their own products ( wine and spirits). By comparison, all 1,087 Alberta stores can sell whatever alcoholic beverages they want.
Mr. Layton includes products sold at special events and as seasonal products, including those sold through private ordering services, in the figure of 3,449 regular products sold in LCBO outlets. But if we followed this expansive measure, the figure for Alberta would not be 11,575, but more than 21,000 active listings, still a lot more than in Ontario. Regular products are more important for customers.
Mr. Layton compares the growth of government revenues in Ontario in the past 10 years to those in Alberta. This does not contradict our findings that the Ontario government could have received more in dividends if the system had been privatized than with its state monopoly.
The MEI never suggested that consumers always prefer smaller stores. In a private market, consumers get stores of an optimal size from entrepreneurs competing to satisfy their tastes and needs. In a monopoly, it is bureaucrats who try to decide on their behalf, without ever having to pass a real market test.
Mr. Layton states that privatization in Alberta led to increased consumption without giving any precise references. Our numbers showing stable sales after privatization come from Statistics Canada.