Saturday, 17 January 2015

Beer Store Franchise Fee

Q17: Will legislation requiring the Beer Store to pay a franchise fee be passed before the end of 2015?
Yes: 60%
No: 40%

An Ontario government panel recently recommended that the Beer Store be charged a "franchise fee", in return for continuing to operate as a monopoly.  Ontario Premier Kathleen Wynne has expressed some support for this proposal.

I think a franchise fee is the most likely outcome of the current situation; it might not be too expensive for the brewers running the beer store, and it would increase Ontario government revenue .  A significant loosening of the monopoly would be much more disruptive and not increase revenue as much.  Continuing with the status quo would make the government look weak.  Still, a lot of things could happen, so I am hesitant to give too high odds to the franchise fee possibility.


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