LCBO Privatization Essay

What is privatization? How does it work? Why do we have it? These are a few questions that are running through the minds of millions of Canadians every day. There are many current issues and debates based around the topic of privatization going on with small businesses, large businesses and most importantly the government. My essay is focused on the economical view of the privatization of the Liquor Control Board of Ontario. The purpose of getting an economic view on this topic is to see if it is worth having the alcohol sold out of the LCBO or worth having it sold privately out of grocery stores and gas stations and also how it will effect he economy. This essay will also outline the history of LCBO Privatization, both the good and bad aspects

Firstly, the Liquor Control Board of Ontario’s history changed the economy in a big way. The LCBO was founded in 1927 in result from the Liquor Control Act. The Liquor control act was established and authorized the LCBO to control the sales, transportation, and delivery of alcohol within the province of Ontario, which is also known as a monopoly from an economic standpoint. This allowed the government to have greater control over the economy in Ontario. Since the opening in 1927, LCBO has continued to expand over the years, pulling in millions of dollars in profit. In 1995 the LCBO had a dividend transfer to the Ontario government of $630 million, but in its fiscal year of 2013-14 the dividend transferred to the Ontario government took a massive leap to $1.74 billion. This dividend transfer to the Ontario government increased steadily over the years. In the 2008-09 year the dividend increased $55 million, in the 2009-10 year the dividend increased by around $100 million, 2010-11 year dividend increased by $140 million, 2011-12 years dividend increased by $150 million, 2012-13 year increased by $140 million and in the year 2013-14 it increased by $300 million from the previous year. In 1993 Alberta privatized liquor

They engaged in privatization to try to keep down the size of the government and generate revenues. There are both positive and negative aspects to having the LCBO privatized. The positives for the economy coming from having the LCBO privatized is that the private market is believed to be able to more efficiently deliver a greater number of goods and service than the government does because of the free market competition. Also in the future LCBO privatization will lead to higher quality goods, more choices, less corruption, quicker delivery, and most importantly lower