On April 1, 2015 new liquor laws came into effect across British Columbia. The first thing consumers are likely to notice is wine being sold in grocery stores. This is likely part of a gradual trend that will see beer in liquor stores and eventually a liquor section that would offer a wide range of products.
However, MLA Shane Simpson has warned that the availability of liquor in grocery and other private stores will remain limited, citing the job security of BC Liquor Store employees as a major concern:
Your ability to buy a six-pack on the weekend has become yet another forum to debate the benefits and cons of government regulated employment vs. the flexibility of a competitive free market.
On the one side we have the concerns of those currently employed at publicly run and/or regulated liquor stores. They have considerably more job security and higher wages than their private retail counterparts, who often work for less than a liveable wage.
On the other side, regulation of liquor stores prevents private businesses from creating job opportunities and hinders the small time entrepreneur from being successful. It also increases the price the consumer pays, effectively creating a tax to support the BC liquor store employees. There isn’t a shortage of potential public projects in British Columbia. If we are going to create inefficiencies in the market for the purpose of keeping people employed, surely there could be a better use of funds than liquor store employees. We could divert the money towards healthcare or building roads.
Of course, all of the pro-privatization arguments rely on some benefit actually being passed down to the consumer, employees, and small businesses that potentially stand to benefit. The grocery store sector is dominated by large corporate chains that often stifle markets. Is there a correct answer? No one really knows, which explains the wide variety of schemes designed to deal with just this problem. In the meantime, I will be taking advantage of the opportunity to purchase a bottle of wine with increased convenience.
