Tuesday, 2 July 2013

Latest from the OCSA: An economic study that fails to look at alcohol costs

AP Photo
The Ontario Convenience Stores Association (OCSA) has released a study that claims expanding alcohol sales to corner stores in Ontario will be better for consumers and the government.  The Quebec-owned Mac’s convenience store chain concurs and promises 1600 new jobs for Ontario.  Given the profit motivation behind the OCSA and Mac’s, it is not surprising that they fail to examine the outcome of increased alcohol sales in the province.

Years of alcohol research demonstrates the following:

alcohol availability alcohol sales consumption alcohol related problems and harm health, enforcement, and other costs

A quick look at British Columbia, where this exact model of combined government and private retailing of alcohol was implemented shows just how unsuccessful it has been, particularly in terms of the overall impact on health.  In a letter to the editor of the Toronto Star, researchers from the Centre for Addictions Research of BC and the Centre for Addiction and Mental Health also had the following to say about the OCSA’s economic argument:

“Private stores will in fact compete with government stores and so take away sales thereby reducing both government revenue and LCBO jobs...Alcohol is not an ordinary commodity. Every step towards privatization weakens the community’s ability to limit alcohol-related harm through regulation of price and availability.”

Not only did the majority of Kingston respondents in a recent alcohol survey not want alcohol expanded to corner stores, local compliance rates for selling tobacco to minors raise concerns about how well they will be able to control alcohol sales to youth.  A recent compliance check revealed that 15% of the 150 tobacco retailers checked in KFL&A sold tobacco to a 17 year old youth shopper. 

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