CAQ supporters want an end to SAQ monopoly, but Quebec finance minister says no

Supporters of the Coalition Avenir Québec (CAQ) will propose an end to the liquor monopoly held by the SAQ when they meet at its 2023 conference on May 13-14.

The proposal, listed in the participant's online booklet, is being put forward by party members from the Saint-Jérôme riding, currently CAQ MNA Yourri Chassain's riding.

But on Wednesday afternoon, in a preemptive move, the CAQ's finance minister Eric Girard shut the door on privatization, indicating that the SAQ revenue the government channels into public services is too valuable.

"We have no intention of attacking or changing the SAQ monopoly, which brings in $1.4 billion in dividends. It goes up to $2.2 billion if you count taxes. And then it could go up to $2.6 billion if you count federal taxes," Girard said.

Privatizing the SAQ was an idea Fran]çois Legault had floated before he was elected premier, but he didn't raise the idea during the 2018 election campaign and ruled out the idea six months after taking office.

In the preamble to their proposal, party supporters explained that hundreds of Quebec spirit, ciders and wine producers are being "hampered by too much bureaucracy," due to the SAQ's monopoly on purchasing and selling alcoholic beverages.

On Wednesday, they found an advocate in the leader of the Quebec Conservative Party, Éric Duhaime, who proclaimed his support for the idea during a press conference in Quebec City. He said he favours competition in the marketplace.

"It is not the role of the government to monopolize the sale of alcohol. Over-regulation is stifling our alcoholic beverage producers," Duhaime said in a press release.

The privatization concept is not a new one for Duhaime. He raised it during the 2022 election campaign. At the time, Duhaime said he wanted a variety of food shops to be able to sell alcohol to help boost local economies.

It seems to be a subject that's preoccupied him for some time.

In 2014, he published a 164-page book where he questioned how the province-owned monopoly benefitted citizens.

"What are the advantages for the SAQ's customers? Certainly not competitive prices, a diversified offer or a real promotion of Quebec's local products," Duhaime wrote.

He wrote that it's time for Quebecers "to pop the cork," on the SAQ.

TIME FOR PILOT PROJECT: ECONOMIST

A Quebec economist at the Université du Québec à Trois-Rivières thinks it's about time a government launched a pilot project to see how carving away at least some business form the Crown corporation would benefit consumers and Quebec producers.

Frédéric Laurin thinks that if there were specialty stores that could sell wine or whiskeys, for example, customers would have access to a greater selection of wine and spirits.

"The problem is a monopoly can't handle more than a certain amount of products, so if a new product must go in, old product must go out," he explained.

Laurin said it's difficult for customers to obtain a product they want that's unavailable at the SAQ.

The other issue is price. Freeing Quebecers from a monopoly would indeed create competition and drive down prices he said, because the SAQ's margins are high.

"If you take a Bordeaux that is sold elsewhere it will be sold at $5 or $5.25. Here, it will be sold for $15. So the margins are very huge and this does not include four taxes in addition to the administrative margin of the SAQ," Laurin said.

Laurin suggested that the government could approach taxation on alcohol products differently to make up for some of the potential lost revenue.

"Why aren't the margins or taxes higher on beer" he asks, instead of being so much higher for wine and spirits.

FORMER COMMISSION RECOMMENDED CHANGE

In 2015 the hot-button topic was the subject of a Quebec commission It concluded that privatization is the ideal scenario suggesting in its final report that the province should liberalize its liquor monopoly and consider giving its tax-collecting powers to Ottawa in order to scale back the size of government and reduce costs.

The commission headed by former federal and provincial Liberal cabinet minister Lucienne Robillard, suggested Quebec maintain its government-run stores while also making room for private sales, which would be subject to a special liquor tax.

An SAQ spokesperson declined to provide its reaction to the CAQ members' ideas. Linda Bouchard said its policy is to refrain from commenting on political proposals.

With files from The Canadian Press