Alberta
Alcohol sales in grocery and convenience stores would benefit Albertans
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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
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Alberta
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