Changes are coming to liquor retailing in Saskatchewan and Battleford is one of the places impacted.
Forty existing government-owned liquor stores in Saskatchewan will be converted into privately-operated liquor stores, with the changeover due to happen after the next provincial election in April.
The liquor store in Battleford is among the 40 impacted. Other area stores impacted include Lloydminster, St. Walburg, Wilkie, Unity and Shellbrook. The North Battleford store is not affected by the changes.
The Battleford store, which leases a location on 22nd Street, has five employees and sales of just over $1.8 million.
In addition to converting the 40 government liquor stores to private stores, another 12 new private liquor stores will be added in the major cities and a few towns that have been underserved, including Aberdeen, Hague, Dalmeny, Pilot Butte, Bienfait and Osler.
Another change will impact commercial permit holders including restaurants, sports facilities and convention centres. Instead of being required to purchase exclusively from SLGA liquor stores and franchises, they will be able to purchase products from any liquor retailer.
The changes were announced by Saskatchewan Liquor and Gaming Authority Minister Don McMorris at a news conference in Regina Wednesday, Nov. 18.
“Saskatchewan consumers will enjoy more choice, more convenience and more competitive pricing,” McMorris said in a statement. “This new direction allows government to collect the same amount of revenue through a new wholesale markup while also correcting many inequities that have existed among the province’s various liquor retailers.”
McMorris said the decision was made following an extensive consultation.
“We received a lot of valuable feedback from stakeholders, customers and the general public regarding their thoughts on the future of liquor retailing in the province. This new direction reflects what we heard and I want to once again thank everyone who took part in the consultation process.”
According to the provinice the 40 government liquor stores that will be converted were evaluated on factors like efficiency, investment required and the ability to meet consumer needs.
There will be a request for proposal process for a new store in each community and retail operators and any other interested businesses will be eligible to participate. As well, affected government liquor store employees will have the ability to participate in and be given preferential consideration during the competitive RFP process for a new store.
Details of the RFP process will be developed in the coming months and all changes implemented after the provincial election in April 2016.
Among the reasons the government is making the change is to create a more level playing field for liquor retailers, according to the press release. Liquor is currently sold in what is called a “hybrid” system that includes government liquor stores, full-line private stores, rural franchises and off-sale outlets, but the government pointed out there are different rules for each.
Among those identified were different discounts, restrictions on the type of products they can sell, restrictions on what beer products can be refrigerated and differences in pricing.
With the expanded private retail model, the government stated, all liquor retailers will be treated the same when it comes to purchasing alcohol for resale at a wholesale price, hours of operation, product selection and chilling of beer products and more.
“There’s a lot of change required to get our retail system where it needs to be and we now have a plan in place,” McMorris said.
“In the end, we’ll have a system that’s fair to retailers and beneficial to consumers while also protecting revenues for government priorities like infrastructure, education and health care.”
One group that has lauded the change is the Canadian Taxpayers Federation.
“The government is freeing local businesses to provide the best possible price, service and selection for customers,” said Todd MacKay, prairie director for the Canadian Taxpayers Federation, in a statement.
“This is a landmark victory for the CTF after decades of work on liquor regulations. But most importantly, this is great news for consumers who will be able to shop around for the liquor store that serves them best.”
But the opposition NDP have made known their opposition to the moves, claiming there are other ways to deliver competitive prices.
On Twitter, NDP leader Cam Broten made known his disapproval.
“Selling 40 liquor stores & losing profits that fund health & educ is unwise. Govt says prices won't change. Let's fix, not sell off!”
In question period Wednesday, opposition critic Cathy Sproule roasted McMorris. “Why not just fix our current hybrid system and deliver better prices for Saskatchewan people?” Sproule asked.
But McMorris defended the changes, saying they were in response to the consultation process that ended in January.
“They’re asking for more choice, they’re asking for more convenience, and they’re asking for price competitiveness,” said McMorris. “That’s what this system will do moving forward.”
