Liar, liar, pants on fire. That is what the Toronto Star says about the LCBO and Ontario's government anyway:
That 6.7 per cent increase in the floor price of a case, bottle deposit excluded, has nothing to do with supply-and-demand, production costs, overhead or distribution expenses. Instead, the Liquor Control Board of Ontario sets minimum prices as part of its "social responsibility" mandate established in 1993. Translation: If alcohol is too cheap, you may abuse it. But documents obtained under Ontario's freedom-of-information law show that the Ministry of Finance, not the LCBO, pressed for higher beer prices – raising questions about the arm's-length relationship between the two bodies.
Holey Moley! You may think that this is all a bit of complainery but if beer is, as Statistics Canada indicates, a 3.2 billion dollar sector of the Ontario economy in 2006 (as opposed to the 2.5 billion the Star indicates) then a 6.7% revenue grab by the state owned monopoly that regulates prices represents up to a $214,000,000 cash grab if the minimum price were also to translate (why wouldn't it) to upward pressure on all beer pricing. Let's be clear: if the price increase represents no increase in costs but is only on the direction of the provincial Finance Minister who receives all LCBO profits at the end of the day, then that is all it is- a way to effectively tax without introducing a law to authorize the tax. Great.
And just before Christmas as well. Nice present for yourself as well as all Ontarians.
Comments
Hilton Lyons - December 22, 2008 10:11 PM
All beer prices used to be the same. then the brewers were allowed to set there own price and some of the small guys came up with a buck a beer and the big guys had to match that with some of their brands. Looks to me like the big guys got to the government.
Rob Creighton - December 23, 2008 10:07 AM
Remember, ABInbevSABMillerCoorsMolson have been losing $10.00 a case since the buckabeer phenomena started. That is right off there bottom line. They are behind this without question. They are hardwired to the Premiers office.
Eric Bennett - December 23, 2008 11:58 AM
"If alcohol is too cheap, you may abuse it."
That's just government BS! Take a look at this excellent article detailing how the Ontario government is raking in tax revenue on beer - http://www.thestar.com/printArticle/454722
I am now living in Ontario but born and raised in Quebec and I can tell you that lower beer prices and availability in grocery stores is not creating rampant alcohol abuse there.
I also recently traveled to China and enjoyed 640ml bottles of quality beer at 40 cents CAD purchase in grocery and corner stores. That is equivalent to $5.00 for a case of 24 - I didn't see the Chinese abusing alcohol en masse either!
Jack Girard - December 25, 2008 1:15 AM
If it's all about social responsibility as stated by by the LCBO (read Ministry of Finance) then a much more important target should be the fast food outlets. Innumerable studies have shown that their products are causing obesity in our children and immeasurable health problems in adults. This, of course, results in astronomical costs to our health care system. So when can we expect to see a minimum price for burgers, fries, fried chicken, etc.?
Alan - January 18, 2009 9:57 PM
Oh, I see - your independent but government owned booze monopoly raises prices because the government asks because the industry asks. Nice independent system.
mac casselman - February 28, 2011 6:20 PM
why can all the rest of the provinces in canada sellbeer in stores over a bar by case ,our liquoir laws are 40 yrs. behinde times something should with the.I drive truck cross border if any of the people ever realized how much beer is made in canada shiped to usa by truck and rail they would be flabergasted a24 of beer loaded on atruck takened to fla. tex. ga.costs $8.13 a keg holds 7 1/2 cases $13.10 made in can..all you peoplle that travle to the states know what beer and liq.cost ther.bottom line is the goverment is ripping the cand. people off as always.one other thing do you people who go to work every day get paid 150.00to show like our goverment does plus all benefits,holidays and after 6yrs. can you retire with a full pension not likely,time to take a stand!!!
2railand