This is an archive of news stories and research from the National Union of Public and General Employees. Please see our new site - https://nupge.ca - for the most current information.
Ottawa (23 Nov. 2021) — Last week, experts in addictions and public health, and a campaigner against drinking and driving, issued a warning regarding the danger caused by alcohol privatization in Ontario. In an article in the Toronto Star, they opposed allowing alcohol to be sold in convenience stores and urged governments to consider the public health impacts when making decisions.
The article also stated that the recent changes to Ontario liquor laws that allow many businesses to sell alcohol will harm public health and that allowing more businesses to sell alcohol would be a mistake.
Privatization of liquor sales increases health problems caused by alcohol
As the article mentions, in both Alberta and British Columbia, research found that privatization of liquor sales in those provinces increased the health problems caused by alcohol. More recently, when Ontario allowed beer and wine to be sold in grocery stores, researchers found that it may have resulted in an increase in the number of emergency room visits due to alcohol-related causes.
One reason studies have shown a link between privatization and increases in health problems due to alcohol is the increase in the availability of alcohol. But this is only part of the problem. When stores are privatized, the goal becomes increasing profit, and research has shown private stores are less likely to refuse to sell alcohol to minors or people who are intoxicated.
Privatizing liquor sales increases health costs and reduces revenues
At a time when governments are claiming to be short of money, privatizing liquor sales makes no sense at all. A 2012 study found that privatizing liquor sales across Canada would cost between $828 million and $1.6 billion. With the lower figure, 57% of the cost would be increased health care spending and 12% would be increased justice and corrections spending.
With what has happened to health care costs since 2012, it is safe to suppose that the cost would be far higher. There is also the question of why on earth anyone would want to see additional demands placed on health care systems that are already under pressure.
But, at the same time that privatization increases costs for health care and justice and corrections, it also reduces government revenues. Alberta, where liquor sales have been completely privatized, is a good example. Government revenues per litre of alcohol sold are by far the lowest in the country, even though regular prices for liquor in Alberta are the second highest across Canada.
This means that at the same time privatization of liquor sales increases the need for government spending, it reduces government revenues to meet that need.