Alberta example shows liquor privatization saves
Once again without doing his homework, (NDP caucus chair) Shane Simpson comes to a conclusion about the suggesting of privatizing of the Liquor Distribution warehouses in Vancouver and Kamloops will hurt government revenue.
What Shane has not told us taxpayers, is that on June 20, 1994, the Alberta government privatized the whole province in regards to total liquor sales and distribution. B.C. only wants to privatize the two major liquor warehouse distribution centres, in Vancouver and Kamloops.
The Alberta government sold the liquor distribution branch to Connect Logistics Services. The starting rate of pay is $18.10 per hour with benefits. Before privatization, Alberta had 204 liquor stores, and today has over 2,000 stores with Connect Logistics Services.
From the Alberta government's point of view and in the interest of Alberta taxpayers, because of privatization, there is no more need for inventory, wages and benefits, and lease and rental space, which puts all this money back into government on behalf of taxpayers.
With the investment of more stores, this has created an influx of new jobs. In return, the Alberta government still collects a government fee called provincial basic flat rate mark-up per litre upon sale of the product in Connect Logistics stores. This mark-up fee is paid to the Alberta government.
In the Alberta government annual report of 2010/2011 the government collected 683.5 million in mark-up fees compared to 404.8 million under government ownership in 1993. An increase of 278.7 million with no inventory expenses, wages and benefits, and lease and rental spaces. Also as Connect Logistics is a private company, they must pay taxes on their revenue.
In a nutshell, a huge cost saving for Alberta for going to privatization. Why didn't Shane mention this to B.C. taxpayers, instead of blowing a gasket and shooting from the hip, without any facts, about privatization? Shane wants to be a member of a majority government, but god help us taxpayers if his party ever becomes government. Just imagine the mess that will happen when he for one, will not do research, and check the facts.