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Written by Mark Hicken
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Thursday, 08 April 2010 22:53 |
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The BC Government has entered into a tentative settlement with the BCGEU which is bad news for efforts to reform BC's wine laws and retail distribution system. The 2 year deal essentially preserves the status quo with guarantees that the government will continue to run at least 187 out of 195 existing government liquor stores as well as the wholesale distribution system. This deal is bad for wine consumers as it will mean that there will be no expansion of competition in the retail marketplace and no economic efficiencies realized from a reform of the existing system. As a result, we will continue to be stuck with a system which gives us unreasonably high retail prices and poor selection. In addition, it will be very difficult for the government to reduce the costs of running the existing system (about $300 million per year). At a time, when the province supposedly does not have enough money to properly fund education and health care, this is a bizarre policy choice on the government side. Why would they decide to spend many millions of dollars per year paying liquor store cashiers when they can't afford to pay teachers and nurses? More to come on this.
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