Quebec's Auditor General says the SAQ has some explaining to do about how it negotiates prices with alcohol producers.

Guylaine Leclerc tabled her nine-chapter report with the National Assembly on Wednesday, with specific chapters devoted to IT contracts, RAMQ billing, and the SAQ.

The AG said the province's liquor board, which is the only legal importer of alcohol in the province was not doing a good job at bargaining with producers.

In particular Leclerc said the contracts with the SAQ did not include standard clauses to provide discounts on bulk purchases.

She said one reason the SAQ may be neglecting to negotiate cheaper prices is because the Crown corporation faces no competition, and makes more profit with higher base prices.

"The more the base price is expensive, the more profit they earn," said Leclerc.

"On a mathematical basis they just don't have the interest... they could not have the interest to have the best cost, because if you pay more, you get more profit."

One key issue Leclerc outlined is the difference in prices between the SAQ and other retailers for identical products. She used the LCBO in Ontario as an example.

“If we would have applied the same margin model as LCBO to SAQ, the income in Quebec would have been $215 million less,” she said.

The Coalition Avenir Quebec said the AG's report is a clear indication the SAQ's main concern is raking in high profits and boosting profits.

“The SAQ, as per the Auditor General, is putting a markup of 130 per cent of profit on some products. Come on! Somebody has to think about the consumer,” said CAQ leader Francois Legault.

The SAQ routinely earns more than $1 billion in profit which is then transferred directly to provincial government revenue.

Those profits come despite the SAQ spending more than 20 per cent of what it earns in net sales on administrative costs.

Francois Legault of the CAQ said it's a clear indication that competition would benefit consumers in Quebec.

Last summer, the Robillard Commission reviewing government programs delivered a report with recommendations -- including putting an end to the SAQ's monopoly.

“We want of course the SAQ to go further in its examination of the business model and the report of the auditor general I think will help us in pushing that process forward,” said Finance Minister Carlos Leitao.

The AG's full report is available online at vgq.gouv.qc.ca.

Leclerc's next immediate task will be examining the Transportation Ministry, which has come under fire for allegations it was awarding contracts to former staff members without submitting them to an open bidding process.