The Ford government is going ahead with plans to terminate a contract with The Beer Store, and to end what it calls a ‘monopoly situation.’
The existing contract is a 10-year deal with the three big brewers that own The Beer Store and still has six years remaining on it. It was signed by the previous Liberal government and allowed the expansion of beer and wine sales to hundreds of grocery stores.
In order to allow beer and wine to be sold in corner stores, the province will have to break that contract, which could cost taxpayers a lot of money.
Still, Finance Minister Vic Fedeli says the current system is not fair to consumers.
"This was a bad deal; and left alone, this bad deal would continue for six more years. Today is our opportunity to bring that legislation and have it passed, bring to a vote, and hopefully have it passed before we rise for the summer; and get started with bringing choice, convenience, and fairness to the people of Ontario by opening this up in convenience stores, big box stores, and more grocery stores." said Fedeli.
The Interim Leader of Ontario’s Liberal Party, John Fraser, says this move does not match up with the people of the province’s priorities.
"This government has an obsession with alcohol. We saw that in the budget. I don’t think it’s in line with Ontarians’ most important priorities: healthcare and education. Number two: it’s sending the wrong message to investors and companies that this government is saying, again, that “we can tear up a contract that we've signed." said Fraser.
The industry is warning that breaking the contact could trigger steep financial penalties for the Ford government, which could cost taxpayers millions.
