Favoured group charged less than half
While ordinary Canadians pay a hefty price for their alchoholic beverages, wine, spirits, and beer, from the provincially-controlled outlets, not everyone does.
It seems that federal departments and agencies, as well as foreign high commissions embassies, consulates and trade missions in Ontario get a huge discount from the Ontario Liquor control board. Many of these agencies and diplomatic missions are located in the national capital, Ottawa, in the province of Ontario.
Last month the LCBO changed its policy slightly to create an across the board bargain deal for such “favoured” clients to charge only 49% of what Ontario resident must pay.
regular price © Doug Ives -Canadian Press
The new discount policy replaces an older, similar, but more complex discount policy based on individual costs of products.
The federal government and diplomats can take advantage of the cheaper prices only by placing orders through the agency’s private ordering department, rather than purchasing directly at retail outlets.
A case of imported wine, which currently costs consumers $203.18, is now priced at $104.80 for this special group, including HST (harmonized sales tax) and bottle deposit.
Imported non-U.S. beer is similarly cheaper, at $28.68 a case versus $42.56 under the old discount. Ontarians currently pay full price at $53.93
The LCBO says the policy change was needed as the agency moved to an automated sales system from the previous manual system for private orders.
Federal policy imposes limits on the purchase of alcoholic beverages with taxpayer dollars, forbidding such hospitality at events attended only by public servants, for example.
And hospitality events at which alcoholic beverages will be served, such as for visiting diplomats, must be pre-approved by ministers or senior officials.
The Bank of Canada in May this year spent $30,000 on several farewell bashes for outgoing governor Mark Carney, which included fine wines.
And in a 2011, Ontario’s auditor said the price of alcohol is too high in the province, and that LCBO revenues were not being maximized.
The agency said last month it generated record sales in 2011-12, the last year for which figures are available, providing $1.7 billion for the Ontario treasury.
(with files from CBC)
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