Governor vetoes alcohol privatisation bill

Pennsylvania governor Tom Wolf has vetoed a bill to privatise the sale of alcohol in the state, thus closing around 500 liquor stores, as it made “bad business sense”.

Pennsylvania governor Tom Wolf has vetoed a bill to privatise alcohol sales in the state

Wolf said he rejected the legislation as it would was not a “responsible means” of overhauling Pennsylvania’s liquor system and increase prices for consumers.

“It makes bad business sense for the Commonwealth and consumers to sell off an asset, especially before maximising its value,” said Wolf. “During consideration of this legislation, it became abundantly clear that this plan would result in higher prices for consumers.”

The Pennsylvania State House voted in favour of selling the majority of its state-owned liquor store system In February, in an effort to claw back a deficit of up to US$2.3 million.

An estimated 4,000 jobs were at risk although employees were assured they would receive help finding new employment, be offered salaried staff grants for education and tax credits to employers who hire redundant workers.

Republicans were said to be “obviously disappointed” with Wolf’s decision, as the proposals were forecast to generate more than US$200m in new revenue in the first year – which could have been directed to public schools.

“In his quest to just raise taxes on Pennsylvanians and employers, and his protection of special interests, he is vetoing very good legislation to get us out of the liquor business, which we shouldn’t be in,” Steve Miskin, the spokesman for House Republicans, told the Pittsburgh Post-Gazette.

However, the move was well-received by many local business owners.

“Governor Wolf made the responsible decision, said UFCW Local 1776 president Wendell W. Young. “As a businessman, the governor recognised that this legislation made absolutely no sense.

“It was a sham bill driven by narrow special interests. It’s time to focus on modernising this asset and moving our Commonwealth forward.

“It’s time to stop these pointless political games.”

The Pennsylvania Liquor Control Board reported the state’s alcohol stores made in excess of US$2.24 billion in sales last year.