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Wednesday, 26 January 2011 20:24

Bottoms up: Towns likely to continue benefiting from liquor sales

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With Gov. Beverly Perdue reversing her stance on her previous suggestion to privatize liquor sales, towns can rest assured they’ll probably not soon see this important revenue stream go dry.

In Waynesville, beneficiary of about $170,000 in annual profits from its ABC store, Perdue’s announcement might give the local ABC board the reassurance it needs to decide how to best handle cramped quarters. Should Waynesville build a new store as previously considered near the big, new Super Wal-Mart; or, should Waynesville simply expand its existing ABC store? said Town Manager Lee Galloway.

The state’s ABC commission in March approved Waynesville’s request to build a second store. Indecision over whether the state might privatize liquor sales put the plan into limbo, however.

Though, truthfully, Galloway wasn’t all that worried about this looming financial threat to the town’s coffers. He said he believes if the proposal moves forward, which seems highly doubtful now without Perdue’s backing, the state would find another method of reimbursing towns for the docked dollars.

Perdue made her I’m-now-against-privatization announcement last week at a meeting of county commissioners attending a legislative goals session in Durham. In the audience was Macon County Commissioner Ronnie Beale, whose primary concern centered on consumption, not revenue. In this, the local Democrat had an ally in the Christian Action League of North Carolina, which bills itself as having the largest networks of members, volunteers and churches of any Christian public-policy group in the state.

The Christian Action League opposed privatization on the grounds people might drink more if access wasn’t state controlled. Walter Harris, president of the Association of ABC Boards, flatly stated he, too, believed privatization would result in increased imbibing.

“I think it is a wise decision not to put liquor at every stop,” Beale said, adding that North Carolina’s less-than-happy experience with privatizing mental-health care raises serious questions about such initiatives.

Billed as “reform,” many critics — including Beale — have said the new mental-health care system in North Carolina fails to provide the state’s most vulnerable residents with basic, much less adequate, care.

Some highly placed Republicans in the now GOP-controlled legislature had expressed their concerns, too, about letting private business owners sell liquor out of grocery stores or other retail stops. North Carolina currently controls every aspect of the more than $5 billion business, but the governor was eyeing privatization as a means of generating dollars to help with the state’s $3.7 billion shortfall.

Adding fuel to the idea of letting vendors handle liquor sales were a number of lurid headline-generating stories about high times by, and high salaries of, some ABC board members downstate.

Such issues, Beale said, can best be handled through other means than simply handing off sales to private business owners.

Franklin Mayor Joe Collins said he believes the current system works, and that by confining liquor sales to (in Franklin’s case) a single store, “certain challenges” surrounding alcoholic beverage sales are more easily controlled. The mayor added he was pleased that, after study, the governor was willing to squelch her own idea.

Canton Town Manager Al Matthews said he isn’t so sure the matter is closed, however, and said the issue merits continued monitoring. Canton, particularly, might have been in a bit of a pickle if privatization had occurred — it has a relatively new ABC store, and sales revenue is being used to offset the building costs.

“Somebody was going to be stuck with a debt,” Matthews said.

 

2010 gross sales at area ABC stores

Canton    $964,474

Maggie Valley    $1,588,210

Waynesville    $2,107,992

Sylva    $2,610,265*

Franklin    $2,434,888

Highlands    $1,567,570

Bryson City    $1,751,508*

SOURCE: North Carolina ABC Commission

* Bryson City and Sylva sales include alcohol purchased by Harrah’s Cherokee Casino

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