Out of business: Privatize ABC now!
From the “Great Idea” file: Senator Mark Obenshain has revived former Delegate Allen Louderback’s dream of privatizing liquor sales in the state. From nvdaily.com:
Sen. Mark Obenshain, R-Harrisonburg, said Monday that he plans to introduce a bill that would require the state to unload the 331 liquor outlets and wholesale wine distribution business.
While the finer points are still being worked out, previous studies have found the commonwealth could realize some $700 million in new revenue — or 23 percent of this year’s budget shortfall — every year.
“ABC sales aren’t that impressive,” Obenshain said. Virginia’s stores made a profit of about $104 million last year, roughly equal to the amount of wine and liquor taxes the stores took in.
Taxpayers could do much better by letting the private sector take over, he said.
Farming out the operation of ABC stores was just one of hundreds of recommendations of a 2002 report on government efficiency and effectiveness chaired by former Democratic Gov. L. Douglas Wilder.
I have long been a fan of this proposal. I agree wholeheartedly with Louderback’s simple summation:
I don’t believe that the government should be in enterprises that the private sector can do.
Certainly I understand the argument that by keeping sales under strict control of the government has the potential to keep it out of the hands of chronic alcoholics and youth. But does it really? Increasing technology has made it nearly impossible to credibly fake an ID in many states. Law enforcement and independent training by businesses has done more than anything to ensure the that youths and alcoholics do not have ready access to alcohol. With the sort of cost savings that are possible under the switch to private sales, now is high time for a change.
