Time has come to end decades-old state monopoly on hard-alcohol industry
In November, Washington voters will have the chance to privatize the Evergreen State's share of a $113 billion U.S. distilled spirits industry, ending a more than 60-year-old state monopoly.
If approved, two qualifying initiatives on the Nov. 2 ballot, I-1100 and I-1105, would close state liquor stores and open up the sale, distribution and importation of hard alcohol to private enterprise.
As the campaign season ramps up, here's why we think I-1100, also called The Washington Privatize State Liquor Stores Initiative, is worthy of the support of Southwest Washington's business community.
Though a competing ballot initiative, I-1105, also ends the state's Prohibition-era monopoly on liquor sales, I-1100 presents the best opportunity to get Olympia out of the alcohol business and to maximize the free-market benefits of privatization.
By repealing "uniform pricing" and eliminating burdensome government regulations, proponents of the measure say it could generate $100 million in badly-needed revenue for the state in the form of increased sales tax receipts and licensing fees, as well as create more opportunities for new and existing retailers.
Taxpayers and hard liquor sellers wouldn't be the only ones to benefit from voter approval of I-1100.
According to Steve Bader, owner of Bader Beer and Wine Supply in Vancouver, the measure would encourage entrepreneurs in the region's nascent microbrewery industry, allowing them to tap into potentially huge markets via large retailers such as Fred Meyer and Safeway.
"It would be good for the entire alcohol industry – and the consumer as well," Bader told the VBJ this week.
Currently, Washington is one of 19 states in the U.S. with some form of a state monopoly on the sale, distribution and importation of alcohol. As in other control states, our restrictive liquor laws remain a holdover from a bygone era – a bureaucratic anachronism which no longer makes sense in a 21st century economy.
Already unions representing workers at state-run liquor stores and some large liquor distributors are lining up against both initiatives. And while we understand the concerns of store employees, distributor owners and their workers, the benefits of privatization of such a large chunk of the state's alcohol industry far outweigh the costs.
Most importantly, it's time to rethink all longstanding yet unnecessary functions of government, particularly in light of Washington state's record-breaking estimated $2.8 billion deficit this biennium and with the promise of even-bigger budget shortfalls in the future.
As an acknowledgement of the changed times we live in, as well as a bid for increased business flexibility and opportunity, I-1100 could be a big step in modernizing Washington state's economy.
For our aging, out-of-touch and inefficient state-run spirits industry, at least, the time has come for change.
