{"id":14314,"date":"2025-01-27T15:25:42","date_gmt":"2025-01-27T15:25:42","guid":{"rendered":"http:\/\/torontotribune.ca\/index.php\/2025\/01\/27\/fords-move-to-speed-up-alcohol-sales-expansion-to-cost-ontario-612m-report\/"},"modified":"2025-01-27T15:25:42","modified_gmt":"2025-01-27T15:25:42","slug":"fords-move-to-speed-up-alcohol-sales-expansion-to-cost-ontario-612m-report","status":"publish","type":"post","link":"https:\/\/torontotribune.ca\/index.php\/2025\/01\/27\/fords-move-to-speed-up-alcohol-sales-expansion-to-cost-ontario-612m-report\/","title":{"rendered":"Ford\u2019s move to speed up alcohol sales expansion to cost Ontario $612M: report"},"content":{"rendered":"


\n<\/p>\n

\n

Premier Doug Ford\u2019s<\/a> decision to speed up the rollout of alcohol sales in corner stores \u2013 which first sparked early election speculation last spring \u2013 will cost the province more than $600 million, Ontario\u2019s budget watchdog said Monday.<\/p>\n

<\/p>\n

That\u2019s nearly three times the amount the Progressive Conservative government said it would cost to accelerate the timeline.<\/p>\n

The Financial Accountability Officer wrote in a report Monday that the expansion of beer, wine and coolers to convenience stores, big box stores and more grocery stores will cost $1.4 billion through to 2030, and $612 million of that is due to the sped-up timing.<\/p>\n

However, that could be much higher or much lower depending on rates of alcohol consumption and consumer behaviour, Jeffrey Novak wrote in his report.<\/p>\n

\u201cThe actual financial cost to the province will depend on how retailers and consumers respond to the expansion of the beverage alcohol marketplace,\u201d he wrote.<\/p>\n

\n

Story continues below advertisement<\/p>\n<\/p><\/div>\n

\u201cAfter accounting for these and other factors, the FAO estimates that the financial cost to the province could range from $529 million to $1.9 billion through to December 31, 2030.\u201d<\/p>\n

\n
\n\t\t\t\t\t\"For\n\t\t\t\t<\/div>\n
\n

Get breaking National news<\/h3>\n

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

Ford\u2019s previous plan was to expand sales of those alcoholic offerings by 2026, but in May he announced that would instead happen in 2024.<\/p>\n

The province said an \u201cearly implementation agreement\u201d with The Beer Store involves Ontario paying the company up to $225 million to help it keep stores open and workers employed.<\/p>\n

Novak said there will also be a $215-million cost as a result of lower tax revenues as grocery, big box and convenience stores are not subject to beer, wine and spirits taxes.<\/p>\n

As well, Novak said there will be $172 million in lower net income to the Liquor Control Board of Ontario. While there will be a $1.1 billion increase in wholesale LCBO revenue, there will also be an approximately $812 million decline in LCBO retail revenue, a $192 million cost to give wholesale discounts to new retailers, $150 million in service rebates to brewers, $105 million in higher operating expenses, and $22 million in higher recycling fees.<\/p>\n