June 19, 1997
Ladies and Gentlemen, Members of the Media:
- Over the past number of months, Government has spent much time
reviewing all the options for the sale and distribution of liquor
products in the Province. The review has been extensive, and has
involved analysing the approaches other provinces in Canada have
taken for the sale of liquor products. We have also analysed our
marketing and distribution of these products.
- Today I am announcing that Government will not proceed with full scale privatization as it is not the approach which best meets the needs of the province at this time. In our view, there should continue to be a reasonable balance between publicly and privately operated stores. Our strategy will continue to recognize the differences between urban and rural markets, and will ensure that pricing, cost control, product regulations, consumer selection, government revenue and service levels will not be compromised.
- For example, in urban areas with greater population and higher sales, centrally located liquor stores with broad selections and extended hours are, in our view, the most efficient way to serve the market. In smaller areas, efficiencies and high service levels are sometimes best achieved through agency operations.
- Government does not plan a wholesale privatization. There will, in the foreseeable future, be a need for anchor stores operated by the NLC in larger centres. The NLC will, however, continue the conversion to agency stores where it is practical and appropriate, to achieve efficiencies and improve services to the public.
- We have agreed with the union to convert three NLC stores, namely Flower's Cove, Harbour Grace and Deer Lake. The Water Street West store in St. John's will close.
- We will improve our service in Conception Bay North by converting the Harbour Grace store to two agency stores. One will remain in Harbour Grace. A new one will open in Carbonear. As well, the hours of operation at the NLC store in Bay Roberts will be expanded to a 6 day, 6 night operation.
- We recognize the need for better distribution of our products throughout the province. Accordingly, we will open a new distribution centre in Deer Lake. Clarenville operations will expand to include new warehousing facilities. The existing retail operation will continue. A new agency store will open in the greater Clarenville area. An agency store will also open in Deer Lake.
- Since 1991, 14 NLC stores have been closed and the total number of agency stores increased to 72. After implementation of today's announcement, we will have replaced 50 per cent of the province's liquor stores with private sector operations. These changes have broadened services throughout the province, especially in rural areas. Our approach today builds on this record of success.
There are no job losses as a result of these changes. All employees affected by store conversions will be accommodated in other NLC operations.
- These liquor store conversions will respect the rights of all NLC employees - both unionized and non-unionized. Our employees and their union, NAPE, have been consulted and an agreement has been reached on these changes.
- The NLC will continue to review its operations in the future. However, there are no plans to close or convert additional stores within the next five years. This will provide employees with a level of confidence regarding long term job security and will also allow the Liquor Corporation to proceed with implementing long term operational and financial plans that are essential to the streamlining of its operations.