Alcohol causes people to not think clearly… even when it comes to the retailing of the product.
Take the ongoing battle of Premier Brad Wall’s government to privatize the retail aspect of alcohol sales in Saskatchewan.
To some extent, one gets the irrationality of those who have a stake in good-paying, unionized jobs in public retail liquor stores.
But it’s also about here where it seems that liquor sales have a bad effect on otherwise clear-thinking individuals.
After all, there is nothing magical about selling liquor compared with any other commodity… other than the fact that it is likely significantly easier to sell than most other products.
What’s failed miserably here in Saskatchewan and in other jurisdictions where the liquor employee unions have tried it is the notion that only “public sector” liquor retailers can safeguard against underage purchasing of alcohol.
Seriously? Public liquor retailers have prevented older brothers and older friends from pulling for their friends? Liquor vendors or private store owners would not be afraid of losing their lucrative licenses by supplying liquors to minors? Bar and restaurant owners in Saskatchewan haven’t already proven private retailers are rather diligent about ensuring only appropriate-aged customers are served alcohol?
Of course, there are other concerns about privatization of liquor, not the least of which would be the concerns of friends of government getting preferential treatment when it comes to getting liquor store franchises.
As stated earlier, the nature of liquor sales doesn’t necessarily always bring out the best wisdom.
And that applies equally to the government’s view of alcohol retailing, especially when it’s mixed with a healthy dose of politics.
Recently, Premier Brad Wall’s government has taken great umbrage at the Alberta NDP government, imposing a $1.25 a litre tax on beer.
Now, if you are a west side rural Saskatchewan hotel beer vendor or a vendor of other liquor, you might very well be wondering why this is an issue at all.
All Saskatchewan retailers have been hammered by the absence of a provincial sales tax to the west of us (Alberta has not had a provincial sales tax since 1937).
But if you are a west side retailer of booze, it’s a double hit, because of the way the two provinces have always taxed liquor.
In Saskatchewan, there is an “ad valorem” taxation policy, meaning taxes are levied on the value of the product.
By contrast, Alberta has always levelled a flat per-bottle duty, meaning that an expensive bottle of rye and scotch would generally be cheaper.
Because of this, beer has generally been slightly cheaper in Saskatchewan than Alberta, even more before the recent change by imposed by Premier Rachel Notley’s government.
The issue for the Saskatchewan Party government is that Saskatchewan beers like Great Western and the craft beer industry would be subject to this new $1.25 per-litre change in Alberta. Similar Alberta based breweries, however, would continue to enjoy the advantage of Alberta government subsidies.
"Alberta's new beer pricing and grant policy are a trade issue that could hurt producers and consumers in both provinces," said Saskatchewan Liquor and Gaming Authority (SLGA) Minister Don McMorris in a prepared statement.
McMorris raised the issue with Notley and Wall at the annual premiers’ meeting.
The question is why this is the Saskatchewan government’s concern.
How much Albertans pay for their beer shouldn’t be McMorris’s concern.
Nor is it really Saskatchewan’s concern whether Alberta taxpayers are subsidizing their local brewers.
Sure, governments need to look after businesses in their own jurisdictions.
But that’s a dangerous game for a Saskatchewan Party government that claims it has no interest in picking winners or losers.
After all, can you subsidize breweries and not the film industry through tax employment credits?
Liquor sure impacts how governments think.
