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#1 2013-07-22 01:49:09

mr.nelson
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Registered: 2008-02-06
Posts: 416

LCBO sweetens deal for federal, embassy booze purchases

Ontario's liquor board sweetens deal for federal, embassy booze purchases

| The Canadian Press Sat, 20 Jul, 2013


OTTAWA - Ontario's liquor board has sweetened an already sweet deal for the federal government and foreign diplomats as it chops the prices they pay for beer, wine and booze almost in half.

Late last month, the Liquor Control Board of Ontario began offering its products to federal departments and agencies at a 49 per cent discount from the retail price that everyone else pays.

The cut rate on alcoholic beverages is also available to foreign embassies, high commissions, consulates and trade missions, most of whom are located in the Ottawa area, within the LCBO's jurisdiction.

And the favoured buyers will be exempt from an LCBO policy dating from 2001 that sets minimum prices for products, under its "social responsibility" mandate.

The new pricing, approved by the board of directors on April 25 this year, replaces an older, more complex discount formula that was based on the individual cost of products.

The now-uniform 49 per cent discount is applied to the basic retail price, but before HST.

A case of imported wine, which currently costs consumers $203.18, is now priced at $104.80 for this special group, including HST and bottle deposit. Under the old discount, embassies and others had paid $131.27 for an extra savings of $26.47.

Imported non-U.S. beer is similarly cheaper, at $28.68 a case versus $42.56 under the old discount. Ontarians currently pay full price at $53.93.

Ontario wine has also become cheaper, though imported booze will go up in price, to $175.63 a case from $143.91, compared with the $342.07 everyone else pays.

The federal government and diplomats can take advantage of the cheaper prices only by placing orders through the agency's private ordering department, rather than purchasing directly at retail outlets.

LCBO spokeswoman Heather MacGregor said the discount policy was changed as the agency moved to an automated sales system from a manual version previously used for private orders.

"This was an internal recommendation to improve systems controls, sales reporting and monitoring of embassy sales," she said in an email.

"A new, more simplified pricing formula, based on a discount from the retail price, had to be developed because the old pricing formula could not be accommodated with the LCBO's existing POS (point-of-sale) system."

The agency sells about 20,000 cases a year under these deep-discount rules, she added, or less than $1 million in sales annually.

"More than 90 per cent of the products ordered are imports," MacGregor added.

The agency was not able to cite the historic value of sales to the federal government, but said there were none in 2012-2013, the year before the new discount pricing began.

The Canadian Press obtained details of the discount policy change under Ontario's freedom-of-information law.

The LCBO also allows deep discounts on sacramental wine purchased by bona fide religious groups.

Federal policy imposes limits on the purchase of alcoholic beverages with taxpayer dollars, forbidding such hospitality at events attended only by public servants, for example.

And hospitality events at which alcoholic beverages will be served, such as for visiting diplomats, must be pre-approved by ministers or senior officials.

The Bank of Canada in May this year spent $30,000 on several farewell bashes for outgoing governor Mark Carney, which included fine wines.

Last month, an economist at the University of Waterloo released a study suggesting LCBO retail prices would be reduced if the province allowed more competition from private operators.

And in a 2011, Ontario's auditor said the price of alcohol is too high in the province, and that LCBO revenues were not being maximized.

The agency said last month it generated record sales in 2011-12, the last year for which figures are available, providing $1.7 billion for the Ontario treasury.


You Can't Fix Stupid!

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#2 2013-07-22 12:45:29

Steel
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Registered: 2008-02-16
Posts: 2521

Re: LCBO sweetens deal for federal, embassy booze purchases

yup....some of the people in the province get to buy their booze at prices we see everyday in the US....99% of us don't

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#3 2013-07-22 14:07:03

Blueline
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Registered: 2008-06-25
Posts: 191

Re: LCBO sweetens deal for federal, embassy booze purchases

Steel wrote:

yup....some of the people in the province get to buy their booze at prices we see everyday in the US....99% of us don't

Yup...the states has cheap booze but if you break your leg you may have to take out a second mortgage to pay your medical bills. 
Think big-picture Steel and quit with the petty whining.

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#4 2013-07-23 12:32:13

Stratfordian
Member
Registered: 2011-11-11
Posts: 127

Re: LCBO sweetens deal for federal, embassy booze purchases

Blueline wrote:

Steel wrote:

yup....some of the people in the province get to buy their booze at prices we see everyday in the US....99% of us don't

Yup...the states has cheap booze but if you break your leg you may have to take out a second mortgage to pay your medical bills. 
Think big-picture Steel and quit with the petty whining.

I suspect that alcohol taxes are not responsible for our health care system, and that we could add competition and lower prices for booze without having to close hospitals.

And if alcohol taxes are so vital to our socialist system, why shouldn't foreigners have to pay through the teeth like those of us who actually live and pay taxes here?

Think common sense and don't blow things out of proportion.

Last edited by Stratfordian (2013-07-23 12:33:25)

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#5 2013-07-23 13:40:03

spankie
Member
Registered: 2008-01-01
Posts: 1350

Re: LCBO sweetens deal for federal, embassy booze purchases

Stratfordian wrote:

Blueline wrote:

Steel wrote:

yup....some of the people in the province get to buy their booze at prices we see everyday in the US....99% of us don't

Yup...the states has cheap booze but if you break your leg you may have to take out a second mortgage to pay your medical bills. 
Think big-picture Steel and quit with the petty whining.

I suspect that alcohol taxes are not responsible for our health care system, and that we could add competition and lower prices for booze without having to close hospitals.

And if alcohol taxes are so vital to our socialist system, why shouldn't foreigners have to pay through the teeth like those of us who actually live and pay taxes here?

Think common sense and don't blow things out of proportion.

Besides I thought the Healthcare tax was suppose to pay for Health Care?? Oh wait it's not a tax and the funds are for general costs.

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#6 2013-07-25 08:25:55

Stratfordian
Member
Registered: 2011-11-11
Posts: 127

Re: LCBO sweetens deal for federal, embassy booze purchases

spankie wrote:

Stratfordian wrote:

Blueline wrote:


Yup...the states has cheap booze but if you break your leg you may have to take out a second mortgage to pay your medical bills. 
Think big-picture Steel and quit with the petty whining.

I suspect that alcohol taxes are not responsible for our health care system, and that we could add competition and lower prices for booze without having to close hospitals.

And if alcohol taxes are so vital to our socialist system, why shouldn't foreigners have to pay through the teeth like those of us who actually live and pay taxes here?

Think common sense and don't blow things out of proportion.

Besides I thought the Healthcare tax was suppose to pay for Health Care?? Oh wait it's not a tax and the funds are for general costs.

Bingo.

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#7 2013-07-26 07:42:57

Steel
Member
Registered: 2008-02-16
Posts: 2521

Re: LCBO sweetens deal for federal, embassy booze purchases

I love the chest beating that has been going on lately about LCBO "profits". You will note it has increased substantially as of late no doubt due to the potential of privatizing distribution.

The latest number says $1.7 billion as the "profit" to the Ontario treasury. Sounds great but wait...there is nothing to compare it to...maybe that number should really be 2.7 or 3.5. Fact is every province that has privatized their systems has seen a massive jump in revenue to the treasury.

Try to tie the cost of booze to health care or anything else for that matter is ridiculous. As noted it could well be the case that the LCBO is not as efficient as they would like us to think....maybe indeed we are getting ripped off on both sides of the ledger....bloated salaries, high over head and mismanagement means depressed "profits" on one side and overly high prices on the other.

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#8 2013-07-26 10:32:19

Stratfordian
Member
Registered: 2011-11-11
Posts: 127

Re: LCBO sweetens deal for federal, embassy booze purchases

LCBO employees are unionized, and recently threatened strike action which was averted as the Liberals gave them a wage increase - at a time when other government employees are having wages frozen.  In times of fiscal restraint this is fine - but why the exemption for LCBO clerks?  My wife's a teacher, and they are being offered days off without pay.  Voluntary, unlike the infamous "Rae Days" of the early 90s, but an example of some measure of cost savings.  BC allows private liquor stores but has government stores as well.  What do they know that we do not?  BC is hardly a bastion of ultra right-wing conservatism.

Our system dates back to 1927 or so, the end of prohibition.  It's time we moved into the 21st century, and started treating adults like, well, adults.  The government does not sell tobacco, cars or furniture.  Why are they in the business of selling alcohol?  And if they insist on selling it, why the monopoly?  And why the private, foreign-owned monopoly that is the "Beer Store"?  Any other private monopoly is against the law.

Last edited by Stratfordian (2013-07-26 10:33:18)

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#9 2013-07-27 10:28:20

spankie
Member
Registered: 2008-01-01
Posts: 1350

Re: LCBO sweetens deal for federal, embassy booze purchases

Stratfordian wrote:

LCBO employees are unionized, and recently threatened strike action which was averted as the Liberals gave them a wage increase - at a time when other government employees are having wages frozen.  In times of fiscal restraint this is fine - but why the exemption for LCBO clerks?  My wife's a teacher, and they are being offered days off without pay.  Voluntary, unlike the infamous "Rae Days" of the early 90s, but an example of some measure of cost savings.  BC allows private liquor stores but has government stores as well.  What do they know that we do not?  BC is hardly a bastion of ultra right-wing conservatism.

Our system dates back to 1927 or so, the end of prohibition.  It's time we moved into the 21st century, and started treating adults like, well, adults.  The government does not sell tobacco, cars or furniture.  Why are they in the business of selling alcohol?  And if they insist on selling it, why the monopoly?  And why the private, foreign-owned monopoly that is the "Beer Store"?  Any other private monopoly is against the law.

Except of course the Oil Companies. Their not a monopoly yet but there are so few players they might as well be and they act like one anyways.

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#10 2013-07-28 21:34:08

bulldog
Member
Registered: 2008-03-05
Posts: 665

Re: LCBO sweetens deal for federal, embassy booze purchases

i think the point here is that federal and provincial government officials can buy their booze for 49 percent of the cost that the average joe can buy booze at...  so if they don't care about tax revenue generated by booze then lets all head for the border,,,,,,,,,,,,, yeeeeee hawwwwwwwwwwwwwww!!!!!

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#11 2013-07-29 10:16:50

Steel
Member
Registered: 2008-02-16
Posts: 2521

Re: LCBO sweetens deal for federal, embassy booze purchases

bulldog wrote:

i think the point here is that federal and provincial government officials can buy their booze for 49 percent of the cost that the average joe can buy booze at...  so if they don't care about tax revenue generated by booze then lets all head for the border,,,,,,,,,,,,, yeeeeee hawwwwwwwwwwwwwww!!!!!

Pretty much what we do...on a regular basis.

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