The Business of Alcohol

Kingstonians are working hard to build a vibrant and sustainable community, with economic growth, quality of life, and culture at its core.  Conflict between these community goals can sometimes exist and work against the goal of sustainability.  This type of conflict can be seen in the sale and use of alcohol.  Alcohol sales contribute to the economy through local jobs and tourism, and through provincial government revenue.  They can also contribute to a city’s cultural environment through arts and entertainment.   All of these things together can have a positive effect on our community.  However, the fact remains that alcohol is a drug, and therefore not an ordinary commodity.  The sale and use of alcohol can also have a corresponding negative impact on the local community by reducing quality of life and safety, and increasing costs, e.g. public services.  There is a need to acknowledge this conflict and to balance the benefits and costs of alcohol in society. 

According to the Canadian Centre on Substance Abuse, the costs attributable to alcohol in Canada total close to $15 billion for health care, enforcement and lost productivity.  In Ontario alone costs total $5.3 billion. Despite the revenue generated by alcohol sales in Ontario, alcohol-related costs including enforcement and health care are significant.   In a comparison of direct alcohol-related revenue and costs in Ontario in 2002-2003, the deficit totaled more than $456 million.  In addition to enforcement costs, communities such as Kingston are burdened with other municipally funded services including fire, ambulance, and public works. 

An economically strong and vibrant city is built upon a sense of community and a shared value for quality of life and wellbeing.   To achieve this goal we must accurately weigh the benefits and costs of our collective actions.  As one researcher in B.C. acknowledged, there is a need to maintain a balance between consumer demand and economic development on the one hand, and addressing public health and safety issues on the other. In times of increasing health care costs, these facts should not be ignored.  Carefully weighing the costs and benefits of a substance known to have both positive and negative impacts can be a cost effective way of reducing demands, often the most expensive demands, on our health care system.