Case #1: Canadian Briefing Note (LCBO)

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Case #1: Canadian Briefing Note (LCBO)

P700 Business, Government and the Global Environment

                                        October 22, 2004

                                                                                                                           

                                                       

                                                                (Total words: 1233)

                                                       

                                          TABLE OF CONTENTS

  1. Introduction …………………………………………………………………..1
  2. Importance of the Issue …………………………………………………….. 1
  1.  Revenue ………………………………………………………………… 2
  2.  Pricing and Marketing ……………………………………………….…  2
  3. Employment …………………………………………………………….  2
  4.  Society Influence ………………………………………………….……. 3
  1. Analysis of Privatization ……………………………………………….…... 3
  1.  Government ……………………………………………………….….… 3
  2.  Business …………………………………………………………….….. 3
  3.  Public ………………………………………………………………..….. 4

4. Recommendation and Conclusion ………………………………………...... 4

Endnotes ………………………………….…………………………………...... 6

Bibliography ………..............................................................................................7

   


1. Introduction

The Liquor Control Board of Ontario (LCBO) is a Crown Corporation established in 1927. It operates nearly 600 stores across the province and has a monopoly on the sale of spirits in Ontario.1 LCBO generated nearly $2.9 billion annually for the people of Ontario - including $2 billion in taxes and another $900 million in profits each year, making it the second largest government liquor distributor in the world.2

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The former Tories planed to sell the board's revenue stream while retaining actual ownership. Now, Dalton McGuinty's Liberals was handing out a workbook to focus groups it had convened, saying that the 600 stores could be sold as franchises. There's something about the prospect of a $5.6-billion deficit that has encouraged the government to obtain funds from selling its prime asset.  

However, the Ontario Liquor Board Employees' Union has been running a successful campaign against privatizing the LCBO, and at same time, National Union of Public and General Employees threw its full support behind a campaign to stop government ...

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