SOUND DECISION

Re: Helping friends (SP, June 7). As minister responsible for the Saskatchewan Liquor and Gaming Authority, I want to clarify some misconceptions contained in Joyce Neufeld’s letter regarding the government’s business decision to convert four public liquor stores to rural liquor franchises.

Saskatchewan has long utilized a blended liquor retail system. Currently, there are approximately 190 franchises, 440 off-sale outlets, and two full-line private stores in addition to the public stores — a business model long supported by the NDP.

Store conversion is not a new concept. In fact, the former government was quite comfortable with the practice. In 1993-95, the NDP converted stores in Radville, Eston and Hafford to rural franchises. Today, all three franchises continue to enjoy success in those communities.

Converting stores to franchises rather than closing them allows SLGA to reduce operating expenses while still ensuring these communities have access to a full line of alcohol products at SLGA prices. The operating costs of all the stores being converted exceed what the government would pay in commission to a franchise.

Overall, SLGA anticipates an operational savings of approximately $1.2 million during the next five years as a result of the conversions. Additional revenue will also be generated from the sale of government-owned buildings.

I am confident that SLGA will find a good business partner that will welcome the opportunity to serve the citizens of each community.

Regarding the suggestion that converting these stores will result in a loss of government revenue, it is important to note that regardless of who sells the liquor, our government continues to generate revenue through liquor markups. Don McMorris SLGA Minister