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March 29, 2007.
TORONTO – The Liquor Control Board of Ontario is losing more than $73
million a year in sales and $16 million in profits by allowing private
“agency stores” to sell alcohol in small and mid-sized Ontario
communities, according to an independent consultant’s report released
today by the Ontario Public Service Employees Union. OPSEU
represents more than 6,000 unionized LCBO employees.
Replacing 60 to 90 agency stores with publicly-owned LCBO outlets
would mean an additional $250 million to $340 million in net provincial
government revenue over the next 10 years, the report shows.
“The agency store program was started in the 1960s to serve small
northern communities that couldn’t support a real LCBO outlet,” said
OPSEU president Leah Casselman. “But in the last four years the
government and the LCBO have doubled the number of agency stores.
About two-thirds of the 199 agency stores are now in located in southern
Ontario and almost half are in communities that could easily support a
profitable LCBO store.”
Agency stores are private businesses that are licenced to sell alcohol in
grocery stores, convenience stores and other retail outlets in communities
approved by the provincial government. In May 2006, the McGuinty
government announced plans to open another 20 agency stores, all in
southern Ontario.
There are 89 agency stores with annual sales between $575,000 and
$3.3 million that could each be replaced with real LCBO outlets while
generating increased public revenue, the study found.
“In addition to costing the province millions in lost revenue each year,
these private agency stores are short-changing local communities,” says
Jo Ann Fisher, chair of OPSEU’s Liquor Board Employees Division.
“Real LCBO stores provide better service and selection. They reduce the
risk of illegal sales to minors and intoxicated customers. They also
provide a bigger boost to the local economy.”
Opening new LCBO outlets would inject an average of $142,000 a year
into the local economy of each community in wages, rent, property taxes
and other expenditures, plus another $280,000 to $420,000 in spin-off
economic activity, according to the report.
The study LCBO Agency Store Repatriation: A Financial Analysis was
prepared by independent business consultant Russ Christianson based
on agency stores sales data provided by the LCBO. Christianson has 25
years’ experience in the retail distribution sector and is president of
Rhythm Communications.
For more information:
David Cox, OPSEU Communications 1-800-268-7376 x 8314
TORONTO – The Liquor Control Board of Ontario is losing more than $73
million a year in sales and $16 million in profits by allowing private
“agency stores” to sell alcohol in small and mid-sized Ontario
communities, according to an independent consultant’s report released
today by the Ontario Public Service Employees Union. OPSEU
represents more than 6,000 unionized LCBO employees.
Replacing 60 to 90 agency stores with publicly-owned LCBO outlets
would mean an additional $250 million to $340 million in net provincial
government revenue over the next 10 years, the report shows.
“The agency store program was started in the 1960s to serve small
northern communities that couldn’t support a real LCBO outlet,” said
OPSEU president Leah Casselman. “But in the last four years the
government and the LCBO have doubled the number of agency stores.
About two-thirds of the 199 agency stores are now in located in southern
Ontario and almost half are in communities that could easily support a
profitable LCBO store.”
Agency stores are private businesses that are licenced to sell alcohol in
grocery stores, convenience stores and other retail outlets in communities
approved by the provincial government. In May 2006, the McGuinty
government announced plans to open another 20 agency stores, all in
southern Ontario.
There are 89 agency stores with annual sales between $575,000 and
$3.3 million that could each be replaced with real LCBO outlets while
generating increased public revenue, the study found.
“In addition to costing the province millions in lost revenue each year,
these private agency stores are short-changing local communities,” says
Jo Ann Fisher, chair of OPSEU’s Liquor Board Employees Division.
“Real LCBO stores provide better service and selection. They reduce the
risk of illegal sales to minors and intoxicated customers. They also
provide a bigger boost to the local economy.”
Opening new LCBO outlets would inject an average of $142,000 a year
into the local economy of each community in wages, rent, property taxes
and other expenditures, plus another $280,000 to $420,000 in spin-off
economic activity, according to the report.
The study LCBO Agency Store Repatriation: A Financial Analysis was
prepared by independent business consultant Russ Christianson based
on agency stores sales data provided by the LCBO. Christianson has 25
years’ experience in the retail distribution sector and is president of
Rhythm Communications.
For more information:
David Cox, OPSEU Communications 1-800-268-7376 x 8314
Welcome to OPSEU
Local 5107's site.
Dedicated to informing
and educating our
"new" local within
OPSEU. One of the
prime reasons the
Local Executive
decided to start a
website was to
encourage
"Information Sharing".
This being said, we
are still in the
beginning stages of
development and
hope to have much
more information
available through our
site in the coming
months. Please have
a look around, as any
suggestions and/or
recommendations are
greatly appreciated.
In solidarity,
Colleen Mac Leod
Webmaster
Local 5107's site.
Dedicated to informing
and educating our
"new" local within
OPSEU. One of the
prime reasons the
Local Executive
decided to start a
website was to
encourage
"Information Sharing".
This being said, we
are still in the
beginning stages of
development and
hope to have much
more information
available through our
site in the coming
months. Please have
a look around, as any
suggestions and/or
recommendations are
greatly appreciated.
In solidarity,
Colleen Mac Leod
Webmaster
