NLC has unfair advantage over small business: CFIB
CFIB calls for review of N.L.'s liquor system
The organization that represents independent businesses in this province says the Newfoundland and Labrador Liquor Corp. is getting boosts to business that no small company can compete with.
The Canadian Federation of Independent Business (CFIB) is calling for a review of the NLC, following the release of a report which CFIB says shows the system favours the provincial Crown corporation.
The NLC said its expenses have increased, however, that's due to an increase in revenues.
In a news release issued Monday, CFIB said its members have called for a more level playing field against what it calls the "anti-competitive and monopolistic approach" of the NLC.
"Liquor is a retail product and not a core government service," said Vaughn Hammond, CFIB's local director of provincial affairs.
Hammond noted that the NLC has incentives for customers, like Air Miles, that other small businesses do not, adding that the NLC has a "significant" marketing budget.
"CFIB members have many concerns about the regulations, particularly since the NLC, for all intents and purposes, regulates itself," added Hammond. "All political parties should commit during the upcoming provincial election to a review of the liquor system."
As the province looks to privatize other aspects of government services, like long-term care, Hammond said, the liquor system should also be reviewed.
The idea of privatizing the NLC has been raised many times before, with former Tory leader Frank Coleman calling it a possibility last May.
In a statement released late Monday afternoon, an NLC spokesperson said it's in the corporation's best interest for small business to grow.
The statement noted that the current number of liquor express stores in independent businesses, 143, is up from the 110 express stores that were operating in 2004.