Surprise: ABC Boards oppose privatization
Here’s a surprise. The foxes don’t want anyone else guarding the henhouse.
The North Carolina Association of ABC Boards wrote a letter to legislators last week saying that they would oppose any efforts to privatize the sale and distribution of liquor in our state. Aren’t these the same boards that have slopped at the liquor company trough for fancy parties and gifts, have hired cronies and paid them ridiculous salaries and have overseen at best a mediocre job of making profits with a business in which they have an exclusive monopoly?
Unfortunately, the focus of the discussion in the privatization of liquor has dwelt largely on licensing private operators to run our current stores. That’s not what most advocates of privatization favor. If all we are doing is switching store management we agree benefits will be minimal but privatization should be about getting our state and local governments out of the liquor business except for licensing, control and taxing.
The real discussion should be about licensing private outlets to sell liquor, much as we license stores to sell beer and wine. Yes, there will be more stores selling liquor, which should result in more sales and more revenues to private business, but to state and local governments. Increased competition will also likely result in lower retail prices.
The state can still set controls as they currently do, issue or revoke licenses, then tax the sales of products. This is exactly what we do with beer and wine and few complain about that system. Local ABC boards have, for the most part, a lousy record of management of ABC stores. They have an exclusive monopoly yet half these ABC boards cannot manage to make a profit. Yes, many of these local governments have buildings they own that will likely become vacant. Sell or lease them to private entities that will begin paying property taxes but even if they sit vacant for awhile great savings will be effected by the elimination of public employees at the local and state level, saving salaries, but more importantly, benefits to these employees. Privatization laws can ensure local governments a revenue stream, much as they now do for beer and wine.
This looks like a slam dunk win-win solution. Reduce costs, help private sector businesses and increase overall tax revenues with no tax increases. What’s not to like?
Yes, we hear the Christian cohort warming up another chorus of “Demon Rum will Ruin the Old North State.” These same performers sang when our state allowed liquor by the drink. Just having alcohol available doesn’t necessarily mean there will be more alcoholics, much as having cars that will reach speeds of 100 m.p.h. means there will be more speeders or having lottery tickets at every nook and cranny means there will be more gambling addicts. If we are wrong we should outlaw cigarettes, gambling, lottery, cars that speed, matches and all sorts of products. The bottom line….the absolute bottom line is that North Carolina has no business being in the liquor business and we hope our legislators have both the wisdom and fortitude to get us out of it.

I would agree with privatization with one caveat. Changes to the DUI laws should be made and stiffer punishment meted out. That would make a good balance with the change in liquor sales.
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Tom,"Iszzz You Crazzzy", or have you come down with "old-timers' disease? After prohibition, the ABC system was set for control--with the principle that "a man had the right to get drunk in the privacy of his own home". It was meant to be self supporting, but not a profit maker. Public drunkenness has alway been a crime. It was never meant to be a "sugar daddy" to feed every issue that comes along.
I suspect that a lot of people are looking "cross-eyed" at private sales. One eye is on wanting to get into the business, and the other is on red ink in their checkbook.
I predict that if the profit were taken out of all liquor sales, state or private, soon there would be no liquor stores, period.
Yes we've come a long way, and it AIN'T all good. They're dieing all the time. Just ask MADD.
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Our friends to the south in the Palmetto State (SC) have a pretty good model to go by. They've been succesful in licencing private liquor stores for sometime now and the SLED folks have done a good job of enforcing the laws down there. God forbid that we might learn from thier example up here. Our liquor laws including the "private club" laws are so antiquated it's a joke. We've got state A.L.E. enforcement officers running around checking club membership cards instead of enforcing the more significant laws like assuring that the convenience store on the corner isn't selling beer to underage drinkers.
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