Ford’s push to expand alcohol sales early to cost province $612M, budget watchdog says
The Ford government’s decision to expedite the introduction of beer, wine, and ready-made cocktails in convenience stores ahead of schedule has raised concerns about the cost to taxpayers. According to a report released by the Financial Accountability Office (FAO), this move is projected to cost the province over $600 million.
This revelation comes just one day before Premier Doug Ford is expected to call for an early election in the province, fueling speculation about his motives for accelerating the rollout of expanded alcohol sales last May. The FAO’s report predicts that liberalized alcohol sales will ultimately amount to a staggering $1.4 billion by 2030.
Of this total amount, $817 million is attributed to the original plan to liberalize alcohol sales by 2026. The remaining $612 million is directly linked to Ford’s decision to hasten the implementation process. This figure is significantly higher than the initial estimate provided by the Progressive Conservative government, which had projected a much lower cost for expediting the timeline.
In order to facilitate the early rollout, Ontario has entered into an “early implementation agreement” with The Beer Store, involving a payment of up to $225 million to support the company in keeping its stores operational and retaining workers. Additionally, the FAO report highlights a $215 million decrease in tax revenues due to the exemption of beer, wine, and spirits taxes for grocery, big box, and convenience stores.
Furthermore, the FAO anticipates a $172 million decrease in net income for the LCBO, despite a projected $1.1 billion increase in wholesale revenue. This decline is attributed to various factors, including a reduction in retail revenue, costs associated with providing wholesale discounts to new retailers, service rebates to brewers, higher operating expenses, and increased recycling fees.
As the election campaign commences, opposition parties have seized upon the FAO’s findings as evidence of financial mismanagement by the Ford government. Liberal Leader Bonnie Crombie criticized the decision, labeling it as a wasteful use of taxpayer money and accusing Ford of prioritizing the interests of “big beer companies and American billionaire buddies” over the needs of Ontario residents, such as access to healthcare.
As the situation continues to unfold, it remains to be seen how this issue will impact the upcoming election and the broader political landscape in Ontario. Stay tuned for further updates on this developing story.
