Newspapers / University of North Carolina … / March 24, 2010, edition 1 / Page 3
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North Carolina considering liquor sales privatization By Caitlin Byrd STAFF WRITER MCBYRD@UNCA.EDU North Carolina has been an alcohol control state for 75 years, but a letter from Gov. Bev Perdue to the General Assembly could change the way N.C. residents purchase liquor in the future. “Personally, I don’t see what the issue is with pursuing reform for the liquor distribution in North Carolina,” said ju nior drama student and certified bartend er Taylor Collins. In the letter. Perdue suggests potential privatization of all or part of the current Alcoholic Beverage Control system. No definitive legislation is called for within the document. However, the mention of privatization was enough to prompt discussion about the issue in a Feb. 23 city council meet ing. At the meeting, Asheville ABC board member Charles Worley said he discour aged both the privatization of liquor sales and making ABC stores directly state-run. Asheville ABC CEO Curtis Canty echoed these sentiments. “Our entity operates like any other pri vate business does. The distinctions are that the board has certain state require ments that it must meet,” Canty said. “The boards have a mandate that all profits go to the city or municipality, and that money is placed back into the city’s hands directly in some form. The boards that operate in a lot of the larger cities and counties, like Asheville, generate a tremendous amount of revenue. ” This year, the Asheville ABC System made $1 million for the city, a drop from $1.2 million in 2008. Collins said he does not entirely dis agree with the current ABC system and its contributions to the city, but privati zation should not be ignored. “I have never had any issue with it in the past, but I do support the argument that if liquor distribution is privatized, it would be a good way for local busi nesses to find a new source of revenue. I am a big supporter of small local busi nesses,” Collins said. “I can see how if used to benefit the town, the ABC stores are a great asset to the city, but if priva tization is put forth, why not let the two coexist?” According to a live caller poll of 600 Steven Hall- Assistant PnotographyEditor Pam Mann, 39, an employee at the ABC store on Merrimon Avenue makes a sale to Christian Smith. likely voters conducted by the Civitas Institute in February, 47 percent of call ers supported privatization, 37 percent opposed it and 16 percent were unsure. “The truth is, unlike privatized local businesses, we aren’t watching our over head everywhere. They’re in it for the buck and short-term,” he said. According to Canty, privatization of liquor sales will help neither the city nor the economy in the long term due to the nature of business incentive. Curtis also said privatization would place local liquor stores at a disadvan tage. “I would dare say that the citizens would be hit with different prices on different products, no different than the way that grocery stores operate. It all just depends on that store’s operating,” Can ty said. “The big box stores that have the purchasing power are able to offer some of the best prices, but that would just be defeating the purpose. Your price control model would be gone under privatization. And of course, there are those that say that the fair market drive and demand would bring the price down, but when does that honestly ever work?” Canty said. Canty’s other concerns relate to the employees who would work behind the counter of these local liquor stores. “We can provide our employees with a livable woridng wage, health benefits, a 40IK plan and things like that. But what would these workers of the local business get? Long hours and minimum wage that just wouldn’t be enough,” Canty said. According to Gov. Perdue’s letter, there are other components of the N.C. ABC system that are not sufficient. Per due also said she wants to strengthen the system’s ethical standards. “If the ABC distribution and sales system remains unchanged, more needs to be done for local ABC Boards and stores to regain the public’s trust - and I will ask for tighter controls and stron ger oversight and restrictions on opera tions,” Perdue wrote. For Canty, this remains high on his list of priorities. “If we have a problem, we want to be the ones to find it first,” Canty said. “The law states that you must be 21 to purchase. You must be 21 to even be in the store. We train our customer service representatives to be attentive and sensi tive and there are terrible repercussions for clerks who violate that. We run cam paigns through our law enforcement di visions to go out and test our stores.” During these tests, an underage per son; the ‘tester,’ goes into the ABC store See liquor Page 5
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