Burns: Liquor privatization plan bad for local businesses
Rep. Frank Burns February 23, 2015 | 4:14 PM
HARRISBURG, Feb. 23 – In a committee action, state Rep. Frank Burns, D-Cambria, today voted against a liquor bill he said would put small beer distributors out of business because they won’t be able to compete with big-box retailers.
“I voted against the bill because it will hurt our mom-and-pop beer distributors,” Burns said. “It's inherently unfair to these small businesses. It will cost them their livelihood, as well as eliminate thousands of family-sustaining jobs, if this convoluted bill becomes law.”
House Bill 466 would sell off Fine Wine & Good Spirits stores operated by the Pennsylvania Liquor Control Board and allow private businesses to purchase licenses to sell wine and liquor. The first licenses would be open to large existing beer distributors. Burns said remaining licenses would go to market, where big-box retailers’ buying and selling power would be too much for local businesses to compete.
“I believe this legislation would put local distributors out of business by allowing competition from out-of-state companies to buy the licenses,” Burns said. “That means corporate retail giants like WalMart and Sheetz could sell beer at their cost, not making a profit, just to get people into the stores. That is something the small-business beer distributor cannot afford to do, so it would drive them out of business.”
Burns added, "This plan will not create jobs, but create more unemployment. The governor's own report on liquor privatization concluded that job creation would be minimal for the big-box retailers, grocers, drug and convenience stores, and smaller retailers.”
According to the PLCB website, Pennsylvania Fine Wine & Good Spirits stores generated about $2.2 billion in sales in 2012-2013. The PLCB returned more than $512 million to the Pennsylvania Treasury, including more than $311 million in liquor taxes, $121 million in sales tax and an $80 million transfer to the state’s general fund.
The state House Liquor Control Committee voted 15-10 to approve the bill. The full House is expected to take up the bill Wednesday.