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The impact of Privatization of the liquor control board of Ontario(LCBO)on economics - Essay Example
Author : krowe
Pages 10 (2510 words)
1. The sale of alcoholic production is always a good source of income in Canada as well as in other countries. So, the control over alcoholic beverages sale provides also a control over prices, consuming choice and service. Is the privatization of alcohol beverages necessary How can it impact Ontario economics and other life spheres of the province
The LCBO also develops wine and bear production in Ontario, its price and marketing policies are very supportive. The LSBO has successfully achieved all these objectives. "The LCBO"is one of the most profitable public agencies in Canada. It has delivered billions in profits and sales taxes to the taxpayers of Ontario over the past decade..." (Retail alcohol monopolies, 1993). So there is a question: will it be more efficient to divide the alcohol beverages market among smaller private firms which are not easy to be controlled rather than to provide reasonable policy in this market This paper will discuss possible impacts of privatization of the liquor control board of Ontario (LCBO) on economics and social sphere of Ontario. Privatization of alcohol beverages industry is a serious step touching all main spheres of Ontario population, so it can result many (basically negative) consequences for the province.
The LCBO is a monopoly in the market which has its efficient net of stores, so it can "bargain for lower prices and greater special discounts from suppliers and carriers" (The Legislative Assembly, 2005). ...