Alberta
Alcohol sales in grocery and convenience stores would benefit Albertans
From the Fraser Institute
By Alex Whalen
Earlier this year, the Smith government confirmed that a panel of MLAs has been exploring the idea of allowing grocery and convenience stores to sell alcohol. Since then, there’s been no new developments. But despite misleading claims from some groups resisting the move, greater retail access would benefit consumers.
Alberta’s fully-private retail market for alcohol is unique within Canada. Following privatization of alcohol retail in 1993, consumers in Alberta have benefitted from greater choice and convenience in the absence of government-owned retail outlets. However, the provincial government still controls which private operators can sell alcohol, and generally prohibits the sale in convenience and grocery stores.
But expansion into grocery and convenience stores simply makes sense. Individual retailers should decide where to sell (or not sell) alcohol to cater to consumer preferences rather than have terms dictated by government. As the footprint of government has expanded in Alberta, policymakers should remember what are the core functions of government, and what’s best left to the private sector. And there’s no good reason for government to dictate which stores can sell alcohol.
Again, some groups including the Canadian Centre for Policy Alternatives claim that Albertans pay higher prices for alcohol under privatization, yet this claim simply doesn’t add up.
First, these groups typically use average prices across Canada to support this claim. But average prices across Canada—which includes provinces with strict government controls of alcohol sales—are meaningless because the mix of products in Alberta has changed. In post-privatization Alberta, retailers and consumers come together in a market to set prices. Consumers may willingly pay more for alcohol in Alberta because they find higher quality products, more convenient locations and/or better store hours than in other provinces.
Rather, what matters are not “average prices” but minimum prices and the ability to find the product you desire at the lowest available price. One comparison of nearly 2,000 products between Alberta and British Columbia (which maintains a more government-controlled system of retail) using minimum prices estimated that 83 per cent of beer, wine and spirits were available at cheaper prices in Alberta.
Moreover, liquor store locations have also become more convenient for Albertans. In 2018 (the latest year of available data), 64 per cent of Albertans lived within a kilometre of a liquor store—by far the highest percentage of any province in Canada and much higher than the 26 per cent in Ontario, which has government-operated liquor stores. In the United States, three-quarters of Americans are served by a private liquor retailing system, and privatized states have 50 per cent more liquor stores per capita than those where government controls sales.
And Alberta’s liquor product selection has expanded from 2,200 in 1993 to more than 31,000 varieties of beer, wine and spirits today. By comparison, Ontarians have at least 6,000 fewer products available.
Finally, critics claim that privatization leads to increases in social problems that arise from alcohol consumption. However, the leading study of Alberta’s 1993 privatization found no evidence of increased social problems such as impaired driving or other alcohol-related offenses.
Alberta has led the way in promoting consumer choice in what is otherwise a strictly controlled market for alcohol in Canada. To strengthen this advantage, the Smith government should continue to remove unnecessary restrictions for the benefit of Albertans.
Author:
Alberta’s future runs on rails
Alberta’s government is bringing together passenger rail experts from across the world to share best practices and inform the province’s Passenger Rail Master Plan.
As Alberta experiences record growth and evolving transportation needs, passenger rail infrastructure and services will be vital for enhancing accessibility and connecting communities. To support this, Alberta’s government is developing a Passenger Rail Master Plan to build the optimal passenger rail system for the province.
As part of the development of the plan, Alberta’s government is hosting a one-day forum to provide an opportunity for Alberta communities, industry and experts to collaborate and share information on passenger rail opportunities and challenges. The forum includes experts from Ontario, Quebec, California, Italy, Spain and Japan who are involved in passenger rail procurement, governance and operations. The sessions will allow for the sharing of best practices and lessons learned on passenger rail planning and development.
“Alberta was built by innovators and visionaries who saw potential in our province and its people. They believed that if you could dream it, you could achieve it. We believe there is opportunity and demand for passenger rail services in Alberta. Today’s forum marks an important step forward in the development of our Passenger Rail Master Plan and in achieving our vision for passenger rail.”
In line with the province’s commitment to engaging Albertans throughout the development of the Passenger Rail Master Plan, a survey has been launched to seek public input on passenger rail. Albertans are invited to complete the online survey by Dec. 20 to help shape the future of passenger rail in Alberta. There will be additional opportunities for Albertans to have their say on passenger rail in the future, including regional open houses which will be held in early 2025.
“Feedback from Albertans, Alberta municipalities, Indigenous communities and industry will be critically important to developing passenger rail services in Alberta. I encourage all Albertans to complete the online survey to help inform a shared vision for passenger rail to enhance accessibility, efficiency, and connectivity across the province.”
In April 2024, Alberta’s government shared its vision for passenger rail and announced the development of the Passenger Rail Master Plan for Alberta. The province’s vision is for an Alberta passenger rail system that includes public, private or hybrid passenger rail, including:
- a commuter rail system for the Calgary area that connects surrounding communities and the Calgary International Airport to downtown
- a commuter rail system for the Edmonton area that connects surrounding communities and the Edmonton International Airport to downtown
- passenger rail that runs between Calgary and Edmonton and the Rocky Mountain parks
- a regional rail line between Calgary and Edmonton, with a local transit hub in Red Deer
- municipal-led LRT systems in Calgary and Edmonton that integrate with the provincial passenger rail system
- rail hubs serving the major cities that would provide linkages between a commuter rail system, regional rail routes and municipal-led mass transit systems
The vision includes a province-led “Metrolinx-like” Crown corporation with a mandate to develop the infrastructure and oversee daily operations, fare collection/booking systems, system maintenance, and planning for future system expansion.
Quick facts
- The Passenger Rail Survey will be open until Dec. 20.
- Alberta’s Passenger Rail Master Plan is expected to be completed by summer 2025 and will include:
- a comprehensive feasibility assessment
- financial and delivery model options
- governance and operations recommendations
- a 15-year delivery plan
- public engagement
Related information
Grande Prairie. Getty Images photo
From the Canadian Energy Centre
Federal cash grab driving costs for local governments, driving up property taxes
New data shows the painful economic impact of the federal carbon tax on municipalities.
Municipalities in Alberta paid out more than $37 million in federal carbon taxes in 2023, based on a recent survey commissioned by Alberta Municipal Affairs, with data provided to the Canadian Energy Centre.
About $760,000 of that came from the City of Grande Prairie. In a statement, Mayor Jackie Clayton said “if the carbon tax were removed, City property taxes could be reduced by 0.6 per cent, providing direct financial relief to residents and businesses in Grande Prairie.”
Conducted in October, the survey asked municipal districts, towns and cities in Alberta to disclose the amount of carbon tax paid out for the heating and electrifying of municipal assets and fuel for fleet vehicles.
With these funds, Alberta municipalities could have hired 7,789 high school students at $15 per hour last year with the amount paid to Ottawa.
The cost on municipalities includes:
Lloydminster: $422,248
Calgary: $1,230,300 (estimate)
Medicine Hat: $876,237
Lethbridge: $1,398,000 (estimate)
Grande Prairie: $757,562
Crowsnest Pass: $71,100
Red Deer: $1,495,945
Bonnyville: $19,484
Hinton: $66,829
Several municipalities also noted substantial indirect costs from the carbon tax, including higher rates from vendors that serve the municipality – like gravel truck drivers and road repair providers – passing increased fuel prices onto local governments.
The rising price for materials and goods like traffic lights, steel, lumber and cement, due to higher transportation costs are also hitting the bottom line for local governments.
The City of Grande Prairie paid out $89 million in goods and services in 2023, and the indirect costs of the carbon tax “have had an inflationary impact on those expenses” in addition to the direct costs of the tax.
In her press conference announcing Alberta’s challenge to the federal carbon tax on Oct. 29, 2024, Premier Danielle Smith addressed the pressures the carbon tax places on municipal bottom lines.
“In 2023 alone, the City of Calgary could have hired an additional 112 police officers or firefighters for the amount they sent to Ottawa for the carbon tax,” she said.
In a statement issued on Oct. 7, 2024, Ontario Conservative MP Ryan Williams, shadow minister for international trade, said this issue is nationwide.
“In Belleville, Ontario, the impact of the carbon tax is particularly notable. The city faces an extra $410,000 annually in costs – a burden that directly translates to an increase of 0.37 per cent on residents’ property tax bills.”
There is no rebate yet provided on retail carbon pricing for towns, cities and counties.
In October, the council in Belleville passed a motion asking the federal government to return in full all carbon taxes paid by municipalities in Canada.
The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.
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