Privatizing liquor will take big gulp from Sask. revenues, group says

Further privatizing Saskatchewan's liquor retailing systemwill cost the provincial treasury many millions in lost revenue, a research group says.

The report from the Canadian Centre for Policy Alternatives, to bereleased on Wednesday, comes shortly after the government launched a review of its current alcohol retailing system. The report was commissioned by the Saskatchewan Government Employees Union, which represents workers in public liquor stores.

The province owns about 75liquor stores, but also allows booze to be sold through hotel off-sale outsets, rural franchises, andmore recently,a small number of private wine and liquor stores.

The government is now seeking public input on five options;everything from expanding the number of government storeswhich Premier Brad Wall's government has already ruled outto an Alberta-style privatization of all itsretail outlets.

In response, the Policy Alternativesreport says more privatization is generally a bad idea.

If the Saskatchewan Liquor and Gaming Authority had earned the same return on investment as Alberta's private liquor-store system, it would have lost about $250 million over five years, a news release from the research group says.

It says the existing private liquor stores in Saskatoon and Regina might be draining away$7.5 million inLiquor and Gaming board profits every year.

Although the government said in the throne speech it will not use taxpayer dollars to build more liquor stores, the Policy Alternativesreport takes the oppositeapproach.

It recommends not licensing any more private retail stores.

It also thinks the Liquor and Gaming Authority should be instructed to study the financial implications of purchasing the existing private retail stores already operating in the province.

The full report is to be released on Wednesday.