Liquor permit auctions half over, government raking in millions

The auction of liquor store permits is proving to be a cash cow for the Saskatchewan government.

The first three auctions with a total of 17 permits netted more than $18 million for the province.

The permits are coming available as the provincial government shuts down its SLGA stores and gets out of the direct-to-customer liquor business; it will still run the wholesaling operation.

“Overall, I would say that SLGA is pleased with the auction process. There’s been interest in the auctions since we first announced them last October and that interest has carried over to the bidding process,” SLGA spokesperson David Morris said.

One of the Regina permits went for more than $1.56 million and though Morris couldn’t say if it was for sure a record, he said it may be the highest they’ve seen.

Morris said it was difficult for the SLGA to speculate on how high the auctions for the permits would go. He said it didn’t have any expectations as to the amount.

“The value of the permits really depends on the community in which they’re located and how many businesses are interested in the permits,” said Morris.

The money will be used to pay for the wind-down of the government liquor stores.

“Additional earnings from it will go to support a variety of government services such as health care, education (and) infrastructure. So it will support the provincial government,” explained Morris.

The auctions are technically for the right to apply for the permit — the winners still have go to through the government’s licensing process.

He couldn’t say on Friday who had won any of the permit auctions, but Morris said the SLGA may have more to say on that once permits are granted.

Town of La Ronge vies for permit

The Town of La Ronge will be going forward in submitting a bid for a liquor permit.

Last week, town council held a special meeting at which it decided to allocate $2.5 million toward a bid and start-up costs.

“This was supported by all six members that attended the meeting,” Mayor Joe Hordyski said.

However, not everyone in the northern community is on board with the town’s proposal.

A representative of the Lac La Ronge Chamber of Commerce told Gormley on Friday there are mixed feelings in the community, which was echoed by some of the 13 members of the public who attended the public meeting.

“(They) were split between people who are actually in favour of the path we’re taking and the other half were opposed to it,” Hordyski said.

“After our meeting I slept really good that night and I haven’t received any phone calls as a result of the motion that we passed. Every conversation that I have had was positive (and) they understand the difficulty of our decision but we’re thinking about the future and what that is going to entail.”

According to Hordyski, additional revenue from the liquor store would go back into the town to help replace aging infrastructure such as the rink and sewage plant.

He added some of the revenue could also be used to invest in addressing social issues.

“This is an opportunity that is kind of unique and thinking outside of the box. I think other municipalities may have missed an opportunity,” he said.

Hordyski said if the town does not get any additional funds, the tax rate would have to be increased.

“(This) would impact every business and every resident in the community,” Hordyski said.

According to Hordyski, only one of the liquor stores in the community handles retail, which is the one it is bidding on. The other two are under a different licence, he explained.

The La Ronge permit auction is to close on Thursday.

— With files from 650 CKOM’s Libby Giesbrecht