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:
From the Fraser Institute
By Tegan Hill
According to last week’s fiscal update, the Smith government recorded a $8.3 billion surplus in 2024/25—$8 billion more than what the government projected in its original 2024 budget. But the good times won’t last forever.
Due largely to population growth, personal income tax revenue exceeded budget projections by $500 million. Business tax revenue exceeded budget expectations by $1.1 billion. And critically, thanks to relatively strong oil prices, resource revenue (e.g. oil and gas royalties) saw a $4.7 billion jump.
The large budget surplus is good news, particularly as it will be used to pay down government debt (which taxpayers must ultimately finance) and to invest for the future. But again, the good times could soon be over.
Recall, the Alberta government incurred a $17.0 billion budget deficit just a few years ago in 2020/21. And it wasn’t only due to COVID—until the recent string of surpluses, the government ran deficits almost every year since 2008/09, racking up significant amounts of debt, which still largely persists today. As a result, provincial government debt interest payments cost each Albertan $658 in 2024/25. Moreover, in February’s budget, the Smith government projected more deficits over the next three years.
Generally, Alberta’s fiscal fortunes follow the price of oil. Over the past decade, for example, resource revenue has been as low as $2.8 billion in 2015/16, while oil prices slumped to $US45.00 per barrel, and as high as $25.2 billion in 2022/23, when oil prices jumped to $US89.69 per barrel.
Put simply, resource revenue volatility fuels Alberta’s boom-and-bust cycle. In 2025/26, the West Texas Intermediate oil price will be a projected $US68.00 per barrel with projected resource revenue falling by $4.9 billion year-over-year.
But oil prices don’t need to dictate Alberta’s fiscal fortune. Indeed, if the Smith government restrains its spending, it can avoid deficits even when resource revenues fall.
There are plenty of ways to rein in spending. For instance, the government spends billions of dollars in subsidies (a.k.a. corporate welfare) to select industries and businesses in Alberta every year despite a significant body of research that shows these subsidies fail to generate widespread economic benefit. Eliminating these subsidies is a clear first step to deliver significant savings.
The budget surplus is undoubtedly positive for Albertans, but the good times could soon come to an end. To avoid deficits and debt accumulation moving forward, the Smith government should rein in spending.
Tegan Hill
Director, Alberta Policy, Fraser Institute
Sat Parhar has been appointed as the first chief of the Independent Agency Police Service, marking the next step toward a new municipal policing option.
The appointment of a new chief for the Independent Agency Police Service (IAPS) marks the next step in giving municipalities a new option for local policing and builds on the work already underway for the agency to assume the police-like duties currently carried out by the Alberta Sheriffs. The IAPS will empower municipalities to adopt strategies that effectively respond to their specific safety concerns, enhancing public safety across the province.
Chief Parhar brings more than 25 years of policing experience, including senior roles with the Calgary Police Service, most recently as deputy chief. His frontline policing experience and deep understanding of Alberta’s complex and diverse public safety landscape positions him to lead the agency as it takes shape and begins its work as a new municipal policing option, keeping communities safe.
Once operational, the agency will strengthen Alberta’s existing policing model and complement the province’s current police services, which includes the RCMP, Indigenous policing services and municipal police. It will help fill gaps and ensure law enforcement resources are deployed efficiently to meet Alberta’s evolving public safety needs and improve law enforcement response times, particularly in rural communities.
“Appointing Chief Sat Parhar is a key milestone in Alberta’s plan to give municipalities a real choice in how their communities are kept safe. This is about building a modern police service that reflects the priorities of Albertans, strengthens local decision-making, and ensures every corner of our province, especially rural areas, can count on responsive, effective law enforcement. With his decades of experience and deep understanding of Alberta’s policing landscape, he is the right leader to bring this vision to life.”
“This appointment signifies a significant step forward in our efforts to establish a more robust, community-focused policing model that is better equipped to meet the unique needs of our local residents. Under Chief Parhar’s visionary leadership, we are confident that we will develop a modern, efficient police service that not only enhances public safety but also aligns closely with the priorities and values of Albertans. His experience and commitment are vital in shaping an IAPS that is responsive, transparent, and dedicated to fostering trust and collaboration within the community, ultimately ensuring a safer and more connected society for all.”
Chief Parhar’s immediate priorities will be to hire an executive team and commence organizational planning such as developing key recruitment, training and other operational policies. Chief Parhar’s appointment is the first step of many to establishing the IAPS.
“It’s an honour to take on this role and help shape a modern police service built for Alberta. My focus from day one will be on setting high standards for professionalism, building strong relationships with our partners and ensuring this service reflects the needs and priorities of the communities we serve.”
The Independent Agency Police Service was formally created through regulation following the passing of Public Safety Statutes Amendment Act, 2024. The agency will operate as an independent Crown corporation, and will be renamed the Alberta Sheriffs Police Service, with its head office located in Calgary. The IAPS will be operationally independent from the provincial government with civilian oversight, consistent with all police services in Alberta.
“When it comes to policing, municipalities like ours deserve a choice – especially when the current system leaves us disadvantaged simply because of our size. We look forward to learning more about what that alternative will look like once an Alberta police agency is fully established and the options are clear. For us, this is about fairness, sustainability, and ensuring municipalities have access to policing solutions that reflect both their needs and their realities.”
Quick facts
- The regulation establishes the IAPS Provincial Corporation and its governance structure including board of directors, board of director powers, financial responsibilities and accountabilities.
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