Manitoba liquor, lottery commissions merger saves $36M

More than $36 million has been saved by mergingthe Manitoba Liquor Control Commission and the Manitoba Lotteries Corporation into a single Crown corporation, the government says.

"In Budget 2012, our government gave direction to begin the merger of Liquor and Lotteries in order to reduce administrative spending, find efficiencies and improve services," said RonLemieux, the minister responsible for Manitoba Liquor and Lotteries.

"The results continue to be overwhelmingly positive."

• Manitoba liquor, lottery commissions to merge

An interim review by consulting firm MNPfound thatcombiningthe two pension funds into asingle one has resulted in aone-time savings of approximately $26.5 million.

Another $9.6 million in merger-related savings was achieved, including$3.8 million of which will happen on an annual basis, the MNP report states.

Those savings have been achieved by reducing duplication, consolidating vendor service contracts as well as through staffing and administrative efficiencies, such as streamlining intoone board of directors from two, eliminating nine executive and senior management positions, and making 38 positions redundant.

All impacted staff have been or will be offered alternative opportunities, according to Lemieux.

Further savings are anticipated as a result of the consolidation of head office, payroll and human resources systems, he added, notinga final review by MNP will be conducted.

The MNP interim report can be found by clicking the link at the top left of this page.