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Monteith-Farrell bashes billion-dollar Beer Store plan

NDP MPP says Ford government should wait until the contract between the province and the Beer Store ends in 2025.
Judith Monteith-Farrell
Thunder Bay-Atikokan NDP MPP Judith Monteith-Farrell (Matt Vis, tbnewswatch.com)

THUNDER BAY – A billion dollars could be put to much better use than paying off beer companies to allow suds to be sold in corner stores, says a local MPP.

Judith Monteith-Farrell, who represents Thunder Bay-Atikokan at Queen’s Park, says she’d prefer Premier Doug Ford to wait for the contract between Ontario and the Beer Store consortium – three of the world’s largest brewing companies – to run out before making the move and risking paying out early termination penalties that could amount to as much as $1 billion.

The contact ends in 2025.

“This is one of the most bizarre arguments that we’ve seen from this government,” Monteith-Farrell said. “They’re selling it as fairness because these three companies, they own the Beer Store and they own the rights to the Beer Stores.

“But we also sell beer at the LCBO. We also sell beer at grocery stores. It’s not like we have a shortage of beer accessibility. Why not just wait out the contracts? They’re not long, and then you can do what you want.”

Monteith-Farrell suggested the decision, if it goes ahead, is a bit hypocritical for a government obsessed with slashing the bottom line and already under fire for cuts to health care, education and autism supports.

“When you say you don’t have money in this province for all sorts of things, like education and health, how can you say you have money to pay for things like fines for the Beer Store?”

Molson owns 51 per cent of the Beer Store, with Labatt holding 45 per cent of the shares and Sleeman four per cent

Four years ago, under the 2015 Master Framework Agreement, the Beer Store did open ownership opportunities to Ontario breweries, also adding four independent directors to its board of directors at the time. It also appointed an ombudsman.

Ford’s plan would open the door to allow every grocery and convenience store in the province to sell beer.

According to a recent CBC report, beer sales in Ontario are worth $3.6 billion a year. That same report showed the Beer Store’s profits dipped 2.3 per cent the year after the province opened beer sales in limited fashion at select grocery stores.

Finance Minister Vic Fedeli this past week announced a plan to scrap the Beer Store contract, claiming it would not only expand access to beer, but also protect taxpayers.

"The unfair agreement with the Beer Store puts the interests of three large global brewers ahead of Ontario consumers, taxpayers and small businesses," Fedeli said in a statement.

"It's a bad deal for people in Ontario who want more choice and convenience, and it's deeply unfair to businesses who want to compete in this sector."

Fedeli said he’s hopeful the two sides can reach an agreeable amendment to the 2015 deal that would allow wider beer sales in Ontario.

"It's my hope the multinational brewers who own the Beer Store will put the interest of their customers and Ontarians first and join us as we build a modern, equitable system that opens up more places to buy beer while we create a model that also allows small businesses to grow and create jobs,” Fedeli said.

The Conservative governent has already expanded the hours of sale for alcohol in Ontario, as well as enacting legislation making tailgating legal.



Leith Dunick

About the Author: Leith Dunick

A proud Nova Scotian who has called Thunder Bay home since 2002, Leith is Dougall Media's director of news, but still likes to tell your stories too. Wants his Expos back and to see Neil Young at least one more time. Twitter: @LeithDunick
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