A BC government plan to privatize the distribution of the province's alcoholic beverages will not affect the price at the till, according to the minister in charge of the project.
At the end of the week, the Liberals will produce a shortlist of proposals from companies looking to get in on the warehousing and distribution aspect of the BC Liquor
Distribution Branch.
But no matter the outcome, the price of liquor is not expected to change, said Minister of Labour, Citizen's Services and Open
Government Margaret MacDiarmid.
The government will still retain control over government-owned retail operations and the price ranges available to private stores.
"The warehousing and distribution is not a part of the Liquor Distribution Branch that makes money. It costs money," MacDiarmid said, estimating a price tag of $32 million per year. The plan would also see the eventual sale of the Vancouver and Kamloops warehouse properties by 2015.
"Many people are aware that there's significant taxation on liquor, and it's an
important government revenue. Last year it was around $890 million," she said, adding concern over price increases popping up in various regions of the province are
unfounded.
But finding a cheaper way of handling distribution will not bring the prices down at the store level either.
"Given this is part of the getting to a balanced budget exercise, that wouldn't make sense because that leaves us still with a budget that's not balanced," MacDiarmid said.
A modern warehousing operation would likely mechanize what is currently done by hand by members of the BC Government Employees' Union.
"Let's say one of these proponents comes forward and is able to do it for $4 million less a year. Then over 10 years of the contract, that's $40 million of taxpayers' money that doesn't have to be spent here," MacDiarmid explained.
In March, the union and the province signed an agreement providing job security for members employed by the Liquor Distribution Branch. Roughly 600 union members work in the wholesale customer centres in Vancouver, Kamloops and Victoria.
