
NB Liquor won't be privatized: minister
Published Monday September 8th, 2008


The idea of privatizing NB Liquor hasn't been discussed by the Liberal government and is unlikely to be considered, says Finance Minister Victor Boudreau.
Boudreau rejected the idea that privatizing liquor stores would save the government money, even though it would no longer need to pay building and staffing costs.
"It's certainly not something that we've discussed as a government," he said. "NB Liquor, as it currently stands, they've got a good network of corporate and agency stores depending on the situation and volume of sales."
NB Liquor brought in $131 million in profits for the government last year and the corporation is projecting a profit of roughly $144 million this year.
Alberta is the only province to have fully privatized liquor sales.
Private companies are responsible for costs such as buildings and staffing, while the provincial government still makes money through a mark-up on products.
A 2005 study suggested that as a result, Alberta's government brought in more money per litre of alcohol than Ontario and Quebec.
The number of liquor stores in the province also increased, according to the Montreal Economic Institute study, and those stores are free to offer competitive pricing.
But Boudreau argued keeping the corporation public allows the government to promote social responsibility.
"Having it in the hands of government ensures better responsibility," said Boudreau. "Because liquor is involved, having it in a more controlled environment where we can put measures in place and make it's done responsibly -- I don't see an issue with that."
Earlier this week it was reported that NB Liquor is pulling its agency store out of the centre of Salisbury in favour of a corporate outlet to open in May at the intersection of the Trans-Canada Highway (Route 2) and the Old Fredericton Road (Highway 112) on the village's outskirts.
Officials insist the new corporate store will actually cost taxpayers less than the existing agency store.
Dana Clendenning, president and CEO of NB Liquor, said the increase in customers expected to visit the new store will easily result in enough sales to cover any costs related to the new store. Traffic counts on the intersection show a continued increase in vehicles, with 1.1 million potential customers driving through the intersection yearly.




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