In the latest issue of his OntarioWineReview.com newsletter, Michael Pinkus again expresses frustration with the government-run monopoly on retail sales of wine and spirits in Ontario:
I have made this point before when talking about the LCBO Food & Drink magazine, which competes directly with other publications in the province for advertising dollars; a magazine that is paid for by the people for the people, which sounds great and a pillar to build a country on, but not when you are competing against the very people who paid the money in the first place (magazine editors, publishers, writers, etc. are taxpayers too). One of the sad realities is that with each bottle a publisher buys they are paying to put themselves out of business.
It’s bad enough that the LCBO are the only game in town to buy booze … it’s bad enough that they waste millions of dollars a year on fancy stores (when they don’t have to) … it’s bad enough that a government run monopoly competes against their own populace and private enterprises for advertising revenue … but now they have to blow dollars on advertising themselves, buying expensive jingles and song rights … is that where you want your tax dollars to go? Could we not find better uses for this money, seriously? And what happened to social responsibility? They are advertising so we’ll buy more — does that seem counter-productive to the social responsibility pact. Heck, I don’t see this many ads for Premier Liquors out of Buffalo, and they have competition.
In the coming weeks we’ll look a little deeper into the LCBO, see what the Auditor General had to say, and read what the pundits are talking about. Find out why our booze prices are being raised mainly because we can’t be trusted as a society to police ourselves when it comes to drinking the devil’s liquid. I just can’t believe that all this is going down and nobody seems to be saying anything on the subject. Over the past few weeks I have been listening to CFRB: John Tory and Jim Richards both made mention, Richards went as far as to speak with Chris Layton (media relations mouthpiece for LCBO) — while both announcers shared their outrage with listeners over various aspects of the LCBO’s conduct (John: advertising; Jim: price raising), the apathetic Ontarians who bothered to call in had very little to say on the matter, many believing the LCBO is doing a bang up job.
A quick search of the blog shows that just about every mention of the LCBO is a negative one. No surprise there: the LCBO is a relic of the post-Prohibition era and is still run in a way that would be familiar to the state-owned “stores” of the old Soviet Union. They are undeniably better both in selection and in service than they used to be, but just about every positive change was wrought by the mere threat that the government of the day was looking at privatization as an option. As soon as the threat went away, the positive changes could be slowed or even stopped: after all, where else are you going to go to buy your wines and spirits?
