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Privatization of Liquor Stores

Privatization of Liquor Stores. (Proof of Debate) Chris, Taylor, Ethan, Susan, Bucky, Taylor, Joyce, & Nolan. Question:. Should Virginia privatize its liquor stores?. Overview:. Privatization: The selling of state run liquor stores to private investors.

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Privatization of Liquor Stores

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  1. Privatization of Liquor Stores (Proof of Debate) Chris, Taylor, Ethan, Susan, Bucky, Taylor, Joyce, & Nolan

  2. Question: Should Virginia privatize its liquor stores?

  3. Overview: • Privatization: The selling of state run liquor stores to private investors. • Virginia has a 76 year sale monopoly of liquor. • The plan would cause a loss of $40 million per year. • The plan would also bring in a one time sum of $500 million.

  4. What is the plan? • The state would auction off all 332 retail liquor stores and triple the number of outlets while putting wholesale operations into the private sector.

  5. Why Gov. McDonnell wants it? • This would raise money for the state to use towards transportation. • Fixing roads • Maintaining infrastructure • Building new roadways

  6. What happens if it is enacted? • ABC would still maintain law enforcement and monitor safety and health concerns. • The private sector would employ former ABC employees. • The licenses would be tradable with state approval. • Licenses would have a general area associated with them. • The number of licenses would expand over time if necessary.

  7. What happens if enacted continued… • The state will continue to collect taxes on liquor sales and collect additional money from property taxes. • The state would no longer be responsible for the $115 million annually associated with running the stores. • Gov. McDonnell would add more ABC agents to help patrol the new stores. • This would also add tax to alcohol sold in bars.

  8. Amount of liquor store changes…

  9. People/organizations for the bill… • Senator Mark Obenshain • “My goal with the bill is to get the state out of the retail business.” • “Licenses will be paid annually, based on whatever the ABC determines.” • Overall, Sen. Obenshain believes that this is good because it would create competition throughout the state.

  10. For the bill continued… • Jerry Falwell Jr. • Chancellor of Liberty University • He believes that the founders never intended for government to be in the liquor retail business. • Former Governor L. Douglas Wilder proposed the bill in 2002 to Governor Warner while on the Commission on Efficiency and Effectiveness. • Privatization was seen as a way to make government more productive.

  11. For the bill continued… • Senator Mark Warner • Tried to privatize when he was governor, but believes that some of the figures are optimistic. • Julie Skamangas • It would remove the need to spend tax dollars and government resources. • Shoppers would benefit from convenience.

  12. No Stance • Virginia Petroleum Convenience and Grocery Association • They want a more comprehensive study to answer the following questions: • How privatization would impact future revenue? • Whether privatization would provide economic advantage to one industry segment over another? • Fitzgerald Barnes • Believes that the liquor stores are fine how they are. • There would be an increase alcohol related grief. • Most of the Louisa board members are against it.

  13. Opposition… • Virginia Association of Chiefs of Police • Think it would cause an increase in drunk driving because the bill promotes consumption of alcohol by adding more outlets. • Delegate David Toscano (57th house district) • The loss of revenue and possible safety effects related to increased liquor consumption (DUI, underage drinking, etc)

  14. Opposition continued… • Delegate James E. Edmunds (60th district) • Loss of revenue in small rural towns • The money would end up in Northern Va and the Hampton Roads area • Only wealthy store owners can buy license and stock inventory • Moral reasons such as Jack Daniels being sold in the same store as child toys in such places as Wal-Mart.

  15. Opposition Continued… • Senator Mary Margaret Whipple (31st district) • The new proposal would be a loss of revenue for the general fund. Most of the current funds go towards substance abuse treatment programs. • It would be easier for minors to get possession of alcohol because the bill allows liquor to be sold where whine and beer are sold (CVS, grocery stores, Wal-mart). • This isn’t a correct way to solve transportation problems by encouraging people to drink more.

  16. Opposition Continued… • Virginia Association of Independent Baptists • VAIB is opposed to the bill because it increases the availability of alcohol. • Positions based off of the Bible. • Also they oppose the bill because of social reasons such as alcohol is the most dangerous drug in the U.S. that has caused deaths, abuse, and neglect. • Senator Creigh Deeds

  17. News Broadcast! • http://www.nbc29.com/category/175568/video-landing-page?clipId=5276605&autostart=true

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