Increased Private Participation in Retail Marketplace

N.S. LIQUOR COMMISSION--Increased Private Participation in Retail Marketplace

The Nova Scotia Liquor Commission will not be sold outright, but increased private-sector involvement in the liquor business will be permitted, and the liquor commission itself will become a more service-oriented operation.

Rodney MacDonald, Minister of Tourism and Culture, and Minister responsible for the liquor commission, made the announcement in the legislature today that privately-operated agency liquor stores will open, initially in eight communities. Other private stores offering rare wines and specialty products will also be permitted. New liquor stores opening anywhere in the province could be either privately-operated or liquor commission outlets, depending on a business-case analysis.

The liquor commission itself will become a Crown Corporation, accountable to a board of directors "drawn from a cross-section of Nova Scotians. The directors will be accountable to the shareholder--government. And make no mistake, the shareholder is accountable to the people."

Mr. MacDonald said today's announcement will not result in the closure of any existing liquor commission outlets, ensuring the jobs of more than 700 employees are safe.

The decision comes after six months of extensive review, consultation and financial analysis of seven operating models. From the outset, the government said that any privatization would have to make sense for taxpayers--meaning the $135 million in profits the commission returns to the province each year must be maintained.

The government listened to liquor license holders and the tourism industry who, during the consultation, said the commission must be more responsive to their needs. That input lead to the change in the commission's governance and other service improvements.

"This government is committed to growing the Nova Scotia economy, and to removing needless, government-imposed barriers to economic growth," said Mr. MacDonald. "The action I am announcing today, removes those barriers by addressing in a positive and decisive way issues raised by the licensees."

Mr. MacDonald said the commission has been directed to extend credit card use to licensees. Private wine and specialty stores will provide more specialty products. In addition, a third major irritant to licensed operators and special occasion license holders--a 9.3 per cent surcharge on all liquor--will be cut in half.

The eight locations identified by the Nova Scotia Liquor Commission as under-served, and therefore candidates for agency stores are Iona, Whycocomagh, French Shore, Bass River, New Ross, Freeport, Wentworth Valley and Advocate.

NOTE TO EDITORS: A fact sheet and summary report are available by e-mailing <release@gov.ns.ca.>