Ford government cancels Beer Store contract
The Ford government has introduced a bill in the Ontario Legislature that will terminate the deal with the Beer Store that prohibits the sale of beer in corner stores across Ontario.
The announcement comes after a long bout of negotiations between team ford and the Beer Store over Premier Ford’s promise to allow beer and wine in corner stores, opening up competition and allowing for the expansion to more grocery stores, as well as retailers.
Originally, In 2015, the Liberals had put into place a contract between The Beer Store, three major breweries, and the province that does would not have ended until 2025.
The contract limited the number and type of retail outlets that are able to sell beer in Ontario. Of course, allowing 11,000 convenience stores to sell beer would have been a direct breach of the contract, with any of the contract’s key terms being subject to heavy penalties, with taxpayers being on the hook for most of the fees.
Specifically, the contract’s language made it clear that any breach of the deal would cost taxpayers hundreds of millions of dollars. But law makers say it isn’t possible to bind a provincial government in such an agreement, as it retains its power to simply pass a law declaring any such contract void and eliminating the need to pay any compensation—a move some critics warned would chill other businesses seeking to work with the government.
“The province’s current beer distribution system is owned by three global giants who were handed a sweetheart deal by the previous government, who are more interested in protecting profits than convenience or choice for average people,” Fedeli told the Legislature on Monday.