Wine expansion of the Ford administration will be looked into by Ontario's finance watchdog
The LCBO generates about $2.5 billion annually for the Ontario government, with approximately 80 percent coming from sales at LCBO retail stores.
The Ford government’s recent move to extend alcohol sales to convenience stores and gas stations, funded by taxpayers, is now under scrutiny, according to 680News Radio.
The Financial Accountability Office of Ontario (FAO), an independent financial oversight body, is conducting a value-for-money audit to evaluate the potential financial impacts of this accelerated expansion.
The expansion, which began on September 5, was implemented ahead of schedule. A 2015 master framework agreement (MFA) signed under the Liberal government had granted the privately operated Beer Store exclusive rights to sell 12- and 24-packs of beer.
Although this agreement was set to expire in 2026, the government’s expedited plan includes an “early implementation agreement” with the Beer Store, potentially costing the province up to $225 million.
The FAO’s report will estimate the financial implications of this accelerated expansion and compare them to a scenario where alcohol access would have expanded after the MFA's expiration on December 31, 2025.
Finance Minister Peter Bethlenfalvy, in a September 4 interview with 680News Radio, acknowledged the costs but assured that “every nickel” will be accounted for. He argued that the payments to the Beer Store are intended to protect jobs.
The FAO will also assess the potential impact of the expansion on LCBO revenues.
The LCBO generates about $2.5 billion annually for the Ontario government, with approximately 80 percent coming from sales at LCBO retail stores.
When questioned about the effect on LCBO revenue, Bethlenfalvy responded, “Who knows?” He indicated that the impact would depend on consumer behavior and promised to provide more information once the situation becomes clearer.
His office now claims that “revenues will grow above current levels.”
The Ontario Liberals suggest that the accelerated expansion could cost as much as $1 billion. Liberal Leader Bonnie Crombie criticized the lack of clarity on costs, stating, “Given the Finance Minister has admitted he doesn’t know the true costs of this boozedoggle, he should want to support the FAO getting to the bottom of how much this scheme will cost Ontario taxpayers.”
The FAO will also review the impact on LCBO revenue from wholesale discounts to retailers, service fees, and rebates paid to the Beer Store, as well as changes in tax revenue and alcohol license fees.
