Editorial: Raise a glass to Corbett for pushing privatization

The glories of West Virginia grocery stores and gas stations may soon seep into western Pennsylvania.

Out-of-staters may no longer be mystified by limited hours, long drives and limited selection. Pennsylvanians may no longer be embarrassed when they ask their Ohioan friend how far away the nearest state store is.

If Gov. Tom Corbett’s proposed privatization plan is taken up by the legislature and passed, liquor, wine and beer may be sold together, and the publicly owned network of liquor wholesale and distribution centers may be turned over to the private sector. In the words of Commonwealth Foundation spokesman Jay Ostrich, we may finally be able to buy “bread, beer and Bordeaux” in one location.

The case for privatization has been strong for quite some time. Since Prohibition, states have gradually stopped controlling alcohol distribution, allowing private companies, more in touch with the marketplace, to more efficiently distribute product.

Today, those states that have enacted privatization of certain portions of their systems enjoy lower operating costs, higher total sales and more retail locations. These states also see no higher incidence of alcohol-related motor-vehicle fatalities or underage drinking rates.

State control only makes booze more expensive and limited. It does not save Pennsylvanian lives or make citizens safer.

Gov. Corbett’s plan is not the only one being considered. While Corbett proposes full sale of the entire system, with all state stores closed and the number of retail licenses doubled, Republican State Speaker Sam Smith has said that a more moderate approach, such as expanding sale of wine to grocery stores, is more likely.

But the state’s Liquor Privatization Analysis: Final Report, which suggested privatization in 2011, makes clear that problems with Pennsylvania’s current system demand the full approach. The distribution and retail operations of the state-controlled system are out of date and unresponsive to consumers.

Previous efforts at privatization have been blocked by public opinion. Specifically, conservative voters in the central and northern portions of the state and union households have historically been skeptical.

But a poll from the Commonwealth Foundation found that support for the proposal is high, with six of 10 voters supportive of the governor’s measure. Most importantly, union households and central conservatives have switched from historical opposition to support, 58-38 and 62-33 percent respectively.

The largest block of opposition continues to be the union representing Pennsylvania Liquor Control Board workers themselves. Privatization would likely lead to job losses; today’s enterprise of nearly 5,700 full- and part-time workers could be reduced to as little as 290 full-time positions.

Even for employees that find work in new facilities, it is likely they would face lower job security, wages and benefits than they were previously offered through state employment.

But if Pennsylvania’s system is performing as poorly as the Liquor Privatization Analysis: Final Report suggests, and if we are losing $100 million to out-of-state sales in border areas due to poor distribution, these jobs aren’t economically viable.

Students, rise up in support of privatization. The state may have a role to play in many sectors in the economy, but selling you alchohol is not one of them. While a loss of jobs is unfortunate, a new system will be more economically viable and convenient for consumers.