Privatizing Liquor Retailing in Canada
Study shows privatization benefits in Alberta can be replicated in other provinces
Contact:
Professor Doug West, Department of Economics,
University of Alberta, (403) 492-7646Release Date: 19 March 1998
VANCOUVER, BC>>> The increased activity generated by opening the liquor retailing industry to private enterprise brings more employment, more new businesses, and more consumer choice -- without diminishing government revenues, according to a study released today by the Fraser Institute.
The Privatization of Liquor Retailing in Alberta, written by Doug West, professor of economics at the University of Alberta, analyses the economic impact of privatization. The report shows that the number of private liquor stores is approximately triple the number of Alberta Liquor Control Board (ALCB) stores.
"It is important to study [privatization] initiatives so that their efficiency implications are well understood ... especially those that are likely to be replicated in multiple jurisdictions," writes Professor West.
Among West's other findings, as they relate to the benefits of privatization:
- in a 100-store sample of private liquor stores across Alberta, product selection more than doubled;
- there has been a 134 percent increase in the number of liquor stores serving Albertans, and more communities are now being served by liquor stores;
- full-time equivalent employment in liquor stores is estimated to have tripled; and
- government revenues have not been adversely affected.
Although it is too early to begin a rigorous assessment of the social impacts caused by privatization, West says "there is little evidence to suggest that privatization has been associated with either an increase in crime or an increase in consumption of liquor products."
Established in 1974, The Fraser Institute is an independent public policy organization based in Vancouver.
For further information:
Suzanne Walters, Director of Communications,
The Fraser Institute, (604) 714-4582,
Email suzannew@fraserinstitute.ca
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