Manitoba’s official Opposition and union leaders are demanding the Tory government give proof its plan to allow private stores to sell hard liquor won’t cost the provincial treasury.

Lawmakers are debating Bill 9, which would allow 226 hotel beer vendors, eight specialty wine stores, 168 rural liquor vendors and 50 craft liquor manufacturers to sell the entire catalogue of Manitoba Liquor and Lotteries products, including spirits.

Bill 9, which received second reading Thursday, is the Progressive Conservative government’s third attempt to expand retail liquor sales.

“Businesses will be able to renovate to carry the additional liquor products, hire more staff, to manage and sell new products and earn additional income to recover after financial hardship experiencing by many businesses during the pandemic,” said Andrew Smith, minister responsible for MLL, Thursday, when debate on the bill opened.

However, NDP finance critic Adrien Sala argued the PCs are risking $316 million in provincial liquor revenue.

“We’re talking about a huge amount of money that currently goes towards helping to pay for the costs of health in this province, for the costs of education, for infrastructure, to support our municipalities,” Sala said.

“This government is willing to put that at risk and to have no idea about the impacts of this bill and yet go forward with no sense of what that financial damage could be to our provincial treasury,” he said.

Sala challenged Smith to make public the government’s analysis of expanded private sales on the corporation’s bottom line.

MLL generated $597.8 million in revenue for the government in 2021-22.

Smith countered by claiming Manitobans largely support the expansion of liquor sales to private vendors owing to convenience and access, in keeping with other jurisdictions around the world.

No Liquor Marts will close as a result, he said.

“They seem interested in the profits of (MLL), but they don’t seem to be interested in the profits of local retailers and small businesses in this province,” Smith said.

The government hasn’t released a comprehensive report on the financial hit Bill 9 would deliver to the Crown corporation. However, government officials have claimed expanded private sales won’t hurt the corporation’s profits.

Last May, when the Tories introduced Bill 42, officials said no negative changes to MLL revenues or business at Liquor Marts were forecast. An estimated 70 per cent of liquor products sold in Manitoba are purchased at private stores.

Sala accused the government of handing over profits to “their friends in the private sector.” The proposed legislation requires private retailers to sell products at prices set by MLL.

“On every single bottle we sell in a Manitoba Liquor and Lotteries-operated store, we make approximately an 11 per cent margin on that bottle,” Sala said. “They’re willing to hand that over.”

He also questioned whether the Crown corporation would be on the hook for required security at private stores under potential retail agreements.

Smith responded by saying such details would be hashed out between the businesses and the Crown corporation.

“I think (MLL) and these private retailers can come to some kind of agreement, and I will not be overly prescriptive,” Smith said.

On Friday, Smith’s office would not provide an estimate of the money private stores will make selling spirits annually, saying it depends on how many sign up.

Security costs must be factored into retailers’ business plans, his office said in a statement.

MLL declined to comment on Friday and referred questions to the provincial government.

Manitoba Government and General Employees’ Union president Kyle Ross said the province should make its financial and market analysis of the impact of the bill publicly available.

“There isn’t any proof,” Ross said of the government’s assurance revenues will be protected. “We’ve asked for the reports and asked them to show us that this is factual.

“There hasn’t been a financial impact study on this and we’ve been asked them to produce this,” he said. “If it’s the best for Manitobans, they should easily be able to show us that.”

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Profits from hard liquor sales will benefit private businesses instead of publicly funded services under Bill 9, Ross said.

If the market demands more access to liquor retail locations, MLL could open more publicly run Liquor Marts, he argued.

“We know that 90 per cent of Manitobans… say they’re well served when they go to a liquor store, so why not have more public stores?” Ross said.

The union, which represents staff at Liquor Marts, has not been consulted on the bill, he added.

danielle.dasilva@freepress.mb.ca

Danielle Da Silva
Reporter

Danielle Da Silva is a general assignment reporter.

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