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McGuinty ponders Crown asset sell off (pg. 3)
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| jchung52 |
| lol from mcguinty to malts |
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| Orko |
| quote: | Originally posted by Sly_Guy
I don't know whether or not I support privatization, but does it really make sense to sell off your most prized and profitable government run businesses for a one time lump sum? Does this make any sense in the long term? anyone? anyone? |
If the corps were revenue neutral for the government, then the sale wouldn't matter much at all, except that we would have fewer people working for the government. But, I suspect that the LCBO is run for profit, so selling the asset would result in us losing money for the budget, our own money.
If we can sell the assets, and open up competition, and greater access, then I am all for it.
This isn't the same as the asset sale that the federal/municipal(?) government went through, selling buildings that it actually uses. That type of plan makes even less sense, because then you will have to rent the spaces after you get that lump some, which basically defers your loss to future years. |
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| MarkT |
| quote: | Originally posted by Sly_Guy
I don't know whether or not I support privatization, but does it really make sense to sell off your most prized and profitable government run businesses for a one time lump sum? Does this make any sense in the long term? anyone? anyone? |
that the LCBO is a wildly profitable business is actually a myth, from what I've read and been told.
AFAIK, unless this has changed, in its revenue and profit figures, the LCBO (intentionally) fails to remove the taxes that form a substantial part of the price of alcohol.
since when are taxes that are remitted to the gov't considered as part of revenue and profit of a business?! just because that business is owned by the gov't, that doesn't change how you calculate ROE and profit.
the gov't would still be taking in that substantial tax revenue if the LCBO was sold or dismantled...without the risk associated with operating a business. |
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| Jayx1 |
im not happy with the reason behind it, but selling a lot of these crown corporations would be the best thing mcguinty could ever do other than resign.
Hydro im a bit on the fence about. If there is a way to privatize this without having a monopoly/oligopoly id be for this as well. Privatization isnt enough, there also has to be a viable marketplace. Can this be achieved for hydro without building too much more infrastructure?
Lotto shouldnt be sold. BUT there should be private casinos (non native owned) and its time that toronto and niagara falls get their own special hospitality districts.
Casinos, clubs, smoking permitted, no last call etc etc.
This would not only make the quality of living better for us but be a boon to tourism for these places. Especially Niagara which already has an international reputation but hardly any tourism in the winter (for obvious reasons) |
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| Fin Finnegan |
| quote: | Originally posted by Jayx1
They should abolish the LCBO. Lets allow private competition and sales like in most of the free world cash cow or not.
My worry is that he will sell off the LCBO and then there will be a PRIVATE monopoly on liquor. That will not be a good thing.
Mcguinty makes Bob Rae look like a fiscal conservative! :nervous: :nervous: |
If we have private sales of alcohol, there will be much less variety...Instead, fewer provincial liquor laws. |
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| Jayx1 |
| quote: | Originally posted by Fin Finnegan
If we have private sales of alcohol, there will be much less variety...Instead, fewer provincial liquor laws. |
How so? I would think there would be more variety.
But im all for the fewer laws as well. The laws we have now are nuts |
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| Fin Finnegan |
| quote: | Originally posted by Jayx1
How so? I would think there would be more variety.
But im all for the fewer laws as well. The laws we have now are nuts |
I think that we would have more specialty stores, but we'd have to travel to find them.
The LCBO stores have a huge amount of variety beer, spirits, wine etc.
Currently, the LCBO is one of the world's largest single purchasers of beverage alcohol products - Yes this quote is from Wikipedia. Sorry.
These stores are very convenient, efficient and well stocked in my opinion. It would be nice if they were open later and on more holidays. |
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| Skipper |
| quote: | Originally posted by Fin Finnegan
I think that we would have more specialty stores, but we'd have to travel to find them.
The LCBO stores have a huge amount of variety beer, spirits, wine etc.
Currently, the LCBO is one of the world's largest single purchasers of beverage alcohol products - Yes this quote is from Wikipedia. Sorry.
These stores are very convenient, efficient and well stocked in my opinion. It would be nice if they were open later and on more holidays. |
Agreed on all of the above.
Longer hours and maybe "mini outlets" so that alcohol is available for purchase in more locations would be great.
I know in NS the prices are significantly higher - I was never sure why that is. Volume purchasing discounts in Ontario? |
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| dEsidEL |
| quote: | Originally posted by Skipper
I was never sure why that is. Volume purchasing discounts in Ontario? |
perhaps provincial alcohol taxes?
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| patpicos |
| quote: | Originally posted by Skipper
I know in NS the prices are significantly higher - I was never sure why that is. Volume purchasing discounts in Ontario? |
And QC is much lower. Again it all depends on the taxes.
A case of bud in QC is ~$26-27, here...isnt it around $32-40? |
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| DigiNut |
| quote: | Originally posted by Sly_Guy
I don't know whether or not I support privatization, but does it really make sense to sell off your most prized and profitable government run businesses for a one time lump sum? Does this make any sense in the long term? anyone? anyone? |
If the "most profitable" operation has to fudge its balance sheet so it's not in the red, that should tell you something about public-run operations in general.
If you wanted to pay me $2 billion for a money-losing business, I'd take it and throw in a few extra cases from my own stash. And Hydro/OPG... jesus, if you only knew how much money the taxpayers are pissing away on those. |
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