Budget Bulletin: Province Exploring NSLC Sale
The provincial government will get out of the retail and wholesale liquor business, provided such a move makes good sense for taxpayers.
In the budget address today, Finance Minister Neil LeBlanc identified the Nova Scotia Liquor Commission (NSLC) as a candidate for privatization, in whole or in part. Privatization will only proceed, however, if the government can retain current revenues from the sale of alcohol.
The province will undertake a comprehensive review of alternatives to the current system, in which the Crown corporation controls all aspects of alcohol distribution and sales. Nova Scotia is the only province in Canada that does not permit any private involvement in liquor distribution, wholesale or retail.
This announcement is in keeping with the government's commitment to focus on core government priorities while achieving fiscal objectives.
A steering committee, including senior staff from across government, will carry out the assessment and make a recommendation to government.
The committee will identify and analyse potential business models for warehousing, selling, and distributing alcohol and the impact of each of those models on NSLC staff, government finances, service, and control over the sale and distribution of alcohol.
Options for alternative service delivery are numerous and range from distribution of beer and wine through grocery or corner stores to full privatization.
Regardless of the approach, government will maintain its responsibility to ensure policies and regulations are in place to control alcohol sales and distribution and to minimize the negative societal effects of alcohol.
The Nova Scotia Liquor Commission currently controls the possession, sale, transportation, and delivery of alcohol beverages in Nova Scotia. For the year ending March 31, 1999, sales reached $351.6 million, with $129.2 million returned to provincial revenues.
NOTE: For other 2000-01 budget information, visit the Department of Finance website at www.gov.ns.ca/finance .