Liquor Privatization in Ontario: An argument for why the province needs change

It would be popular, for sure. But implementing it would cut about $2B from income. That's about 1.5% of the budget (using 2015 numbers). Pretty big number to reconcile if you want to other nice things that PCs usually want to do (like lower taxes).

The thing is, it's easy to maintain the status quo on LCBOs. People will like the proposal, but NOT proposing it won't turn off anybody.

Additionally, the logistics are difficult. You can propose opening up the market, but you can't liquidate LCBO assets that easily: there's a labour force and union behind that. So now you're stuck paying for the same old LCBO operating under a more competitive space, and you can't jettison that cost either.

You could set price controls and extract an income from the private sales, but then you'd lose all of that goodwill you got from privatizing in the first place (where much of the expectation is that it'll lead to lower costs).

It's just super complicated and annoying to deal with. Not to say that Brown won't promise it, but just that there are a lot of reasons for him to leave it alone.

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