Yukon gov't denies ask from businesses for higher liquor discount
Minister calls businesses' request an 'oversimplified solution to a complex economic problem'
The Yukon government has denied a request from bars and restaurants in the territory who want a higher discount on wholesale liquor prices.
Dozens of Yukon businesses had signed a petition asking for the territory to increase the discount from 17 per cent to 25 per cent on wholesale liquor products. That petition was tabled in the Legislative Assembly arguing that liquor discounts for licensees are larger in other jurisdictions and that costs of food, alcohol and labour are all on the rise.
Sandy Silver, the minister of finance and the minister responsible for the Yukon Liquor Corporation, responded to the petition in the legislature on Nov. 14.
He said that while he understands the issues the businesses are facing, raising the discount is an "oversimplified solution to a complex economic problem."
He said the Yukon government provides "a suite of programs" to support businesses, including initiatives from the Department of Tourism and Culture that helps draw visitors. But Silver said those programs need to be balanced with the needs of the broader public.
"[Yukon residents] benefit from the profit remittance through the programs and services of the Yukon government," he said.
The petition compares the Yukon to British Columbia, which Silver says has an entirely different pricing structure and tax regime.
"Also, the change proposed would be difficult to reconcile at a time when we are facing an increased understanding of the health and safety harms associated with alcohol," Silver said.
Luke Pantin, executive director of the Yukon Chamber of Commerce, said he's disappointed by the government's decision.
Pantin says he's been hearing lots about the increasing pressures facing bars and restaurants and worries about businesses shutting down.
"We can't just leave it like that," he said, "somebody needs to come up with new ideas."
Pantin said he is continuing to meet with representatives from the businesses to come up with alternative solutions.
With files from Cali McTavish