Alcohol privatisation bill moves to Senate

Pennsylvania state House has voted in favour of selling the majority of its state-owned liquor store system, in an effort to plug a deficit of up to US$2.3 billion.

Most of Pennsylvania’s liquor stores could soon be sold to the private sector

On Thursday, lawmakers voted 114-87 in favour of the alcohol privatisation bill House Bill 466, which would leave just 100 out of 600 government-owned and operated stores open.

It is estimated a total of 4,000 jobs would be lost, but employees have been assured they would receive help to find employment, offer salaried staff grants for education and tax credits to employers who hire redundant workers.

Republican leaders who back the plan argue restricting sales of wine and spirits to a network of state-run stores is inconvenient for consumers and furthermore, the state government has no business selling alcohol.

“Even Russia have given up on the idea of a state-run monopoly,” said Rep. Chris Ross, R-Chester, chairman of the Liquor Control Committee, as reported by the Pittsburgh Post-Gazette. “There’s a reason why that’s happened.

“It’s happened because the private sector is driven to be efficient, and the private sector, unlike the public sector, is more insulated from political interference, unfortunately by people like ourselves.”

All Democrats and a few Republicans opposed the bill, with Democrats suggesting that instead of privatisation, the state should work to better the existing system.

If agreed, the bill would mean licenses would first be offered to beer distributors for the private sale of wine and spirits, while grocery stores would be permitted to buy licenses to sell wine.

The Liquor Control Board reported Pennsylvania’s booze stores made in excess of US2.24 billion in sales.

A similar bill was also passed by the House in 2013, but died in the Senate.