June 2010

 

Privatization Still Looming

In February of this year, the Alcohol Policy Network (APN) wrote an Issues to Watch article on the possible privatization of the LCBO. This development came about after Ontario Premier Dalton McGuinty hired CIBC and Goldman Sachs to review all Crown assets including the LCBO. McGuinty maintains that due to the ballooning provincial deficit of approximately $25 billion, the government had to review their financial options in restoring balance to the provincial deficit.

Since the February, there have been several developments in the alcohol policy field. One of these developments included the well-attended 7th annual Alcohol: No Ordinary Commodity Forum which took place on March 2, 2010.

The 7th annual Forum provided the opportunity for Andy Murie, CEO of MADD Canada, to update the audience on a rather sobering depiction of several possible scenarios should the sale of the LCBO be granted. These scenarios included partial privatization, full privatization, or some form of super-corporation of public assets. As explained by Murie, all of these models would surely increase the number of outlets, increase the hours of service, and lower the price of alcohol. It has been widely documented that increased availability of alcohol has a direct relationship with increased alcohol harms.

In order to educate the Premier that alcohol is a major public health issue, numerous regional health units, advocacy organizations, and research institutes took heed of this opportunity to express concerns. Since January’s letter to Minister Dwight Duncan [PDF], the Ontario Public Health Association has partnered with MADD Canada and the Centre for Addiction and Mental Health to compose an advocacy letter and topic analysis outlining reasons to maintain a provincially-held monopoly of the LCBO. Download the Backgrounder that informed the Letter [PDF].

As stated in the letter, the three organizations “urge an evidence-based approach to alcohol retailing to ensure that the need for short-term financial gain does not result in increased health and social problems”. The letter reinforced this argument by citing the following facts:

1. Research has shown that privatizing alcohol sales makes alcohol more accessible and available. Increased levels of alcohol consumption and high-risk drinking are associated with alcohol-related causes of death and trauma, and chronic diseases.
2. The costs associated with alcohol are already estimated to be substantially higher than the current revenue from alcohol sales. According to the National Alcohol Strategy, alcohol-related deaths cost Canada $14.6 billion in health care, law enforcement costs, and lost productivity.
3. Several studies have indicated the most adult Ontarians are opposed to alcohol sales in corner stores and are opposed to privatization of government stores.

In addition to the joint letter outlined above, numerous Ontario regional public health units have presented similar arguments to their respective Boards of Health, with possible public health implications of potential privatization. The regions include:

• Waterloo;
• Middlesex-London;
• Simcoe-Muskoka;
• Niagara;
• Haldimand-Norfolk;
• Hamilton (forthcoming).

For more on privatization of alcohol sales we encourage you to visit the Controls and Liability Information Pack section of our website, and select the Privatization link, as well as directly contacting one of the health units listed above.

 

A Culture of Extended Drinking

Beginning in June, restaurants and bars will be popular destinations as thousands of fans root for their home country in the FIFA World Cup of Soccer. Due to a recent decision by the Alcohol and Gaming Commission of Ontario (AGCO), a commission accountable to Ontario’s Ministry of Consumer Services, soccer fans will be able to drink alcohol at 10:00 a.m. — an hour earlier than the provincially legislated drinking time of 11:00 a.m. This change came in an announcement by Premier McGuinty on May 30th and is detailed in the AGCO’s Temporary Extension of Hours for 2010 FIFA World Cup Questions and Answers [PDF].

This change seems to have made The Canadian Restaurant and Foodservices Association (CRFA) quite pleased, as seen through the media release directed to the Minister of Consumer Services Sophia Aggelonitis. The CRFA is grateful that they can respond to their customers’ “need” to consume alcohol earlier in the morning.

Others in the province have taken a broader look at the issue. The online version of Guelph's newspaper, GuelphMercury.com asks: “Do we need to import a happy hour because of the World Cup to better enjoy it? That says something sad if we do. It sounds like an excuse to drink more – an interesting thing for civic and provincial politicians to endorse.”

Other provinces have relaxed their alcohol rules as well. During the World Cup, Manitoba begins pouring pints at 9:00 a.m. Alberta: as early as 8:00 a.m. To its credit, the province of Nova Scotia has not relaxed its rules during the World Cup, despite pressure to do so.

Although the changes of alcohol service are subtle, they come with consequences. Increased alcohol availability goes hand-in-hand with increased consumption of alcohol and resulting increases in alcohol-related problems. The risk of injury such as impaired driving, drowning, falls, fires, suicide, homicide, sexual assault, and other violence has been readily linked to alcohol consumption (Solomon et al., 2009, World Health Organization, 2007).

So why the change?

As stated by the AGCO [PDF]: “Given the very high level of interest in the World Cup and the unique circumstances of this event, the Registrar is satisfied that there are no additional public safety concerns.”

Interesting that research in our own province contradicts this claim. In a recent Letter to the Editor issued to major newspapers, OPHA President Liz Haugh drew attention to an increase in alcohol service hours which took place in 1996. This slight increase in service of 1 hour led to an immediate and significant increase in non-motor vehicle crash injuries (Vingilis et al., 2008). “Although this ‘one-time allowance’ appears minor, we need to look longer term at the possible slippery slope it creates,” urges Haugh.

The slope appears to be getting quite slippery quite quickly. Mike Williams, General Manager of the cities economic development committee, has recently proposed that the drinking hours be lifted during the Nuit Blanche Arts Festival in Toronto. This proposal requests that certain establishments in specified zones can offer all-night dinning and beverage service. A report outlining the details was reviewed by city council on June 1st and results of this decision are still pending.

As alcohol control measures appear to be sliding, it is important for regional health units to note that “a municipality may indicate to the AGCO that it objects to the extension of hours. A notification (i.e., letter from the Municipal Clerk) may be submitted to the Registrar. Any such objections will be respected and the extension of hours will not apply in these municipalities.” (Source: Alcohol Gaming Commission of Ontario [PDF])

This article was prepared, in part, with permission to use information provided by Melissa Rennison, Middlesex-London Health Unit.