Premier Doug Ford announced a plan to speed up the selling of beer in Ontario, allowing convenience stores to sell alcohol by August 1st, followed by grocery and big box stores selling a range of alcohol products by October 31st. The government claims this will add up to 8,500 new places for people to buy alcohol in the province. The cost of this plan is a point of contention, with Ford and Finance Minister Peter Bethlenfalvy estimating a maximum cost of $225 million, while the Ontario Liberals believe the true cost is over $1 billion. The Liberals argue that the costs will come from money for The Beer Store, LCBO rebate fees, wholesaler discounts, and lost license fees, among other factors.
The Liberals suggest that the government will incur costs in multiple areas, including payments to The Beer Store, fees paid to the LCBO, discounts for wholesalers, and lost license fees. They estimate the total cost to be over $1 billion, based on various factors related to the new alcohol selling plan. The government’s plan includes a 10% discount for grocery stores buying products from the LCBO, which the Liberals believe will cost around $150 million over two years. Additionally, they argue that not charging for alcohol sale licenses could result in lost revenue for the province, amounting to upwards of $300 million.
Minister Bethlenfalvy denies the Liberal’s cost estimates, stating that the government has no plans to increase fees or taxes to cover the cost of the early alcohol sale expansion. He specifically disputes the claim that over $300 million could have been raised through auctioning alcohol sale licenses. Ford defended the $225 million payment to The Beer Store as a means of supporting frontline workers and avoiding mass layoffs. The premier emphasized that the money is not going directly to the owners of The Beer Store but rather to protect workers’ jobs during the transition.
The announcement of the accelerated alcohol selling timeline sparked rumors of an early election and criticism from the opposition. Ford portrayed the move as treating Ontarians like adults and emphasized the importance of supporting Beer Store workers during the transition. Bethlenfalvy did not provide a definitive answer on the ultimate cost of the expansion but assured that updates would be provided in future financial updates. The government’s plan to increase access to alcohol in Ontario continues to be a topic of debate, with differing opinions on the financial implications and benefits of the policy.
