Budget watchdog to probe Ford government’s alcohol expansion deal

The Financial Accountability Officer said Monday his office will look into how much LCBO will stand to lose as convenience, grocery and big box stores begin offering booze.

Ontario’s budget watchdog is taking a deeper look at the Ford government’s alcohol expansion policies after the province agreed to pay $225 million to end an exclusivity contract, paving the way for beer and wine to be sold in corner stores.

Jeffrey Novak, the province’s Financial Accountability Officer, said on Monday that his office will also look into how much money the provincially-owned LCBO will stand to lose as convenience, grocery and big box stores begin offering a wider selection of booze on store shelves.

The government’s critics say the watchdog will be able to give taxpayers the first independent view of the total price tag, based on the province’s own internal assessments and tightly-held projections.

“They can do a full, thorough investigation,” said Liberal MPP Stephanie Bowman, who initially requested the review. “They will be able to look at all of these agreements … and look at estimated impacts on taxpayers revenues and other costs.”

There has been fierce debate over just how much the plan to liberalize the sale of alcohol will cost. The government has offered no details beyond a payment of $225 million to the privately-owner Beer Store to break its exclusivity rights; the Liberals have claimed that between lost money, missed opportunities and that fee, the cost is above $1 billion.

Twice in the past year, the government has made announcements to bring alcohol to convenience stores. First, the province announced beer and wine would be more widely available from early 2026, then in a bid to fulfill an election promise, the province decided to fast-track the end of an agreement with The Beer Store that gave the internally-owned retailer near-exclusive access to where beer could be sold in the province.

In May, the province agreed to pay The Beer Store up to $225 million in “added costs” stemming from the widespread sale of alcohol in convenience and additional grocery stores.

Government sources told Global News the money was to ensure the beer retailers maintained a set footprint in the province and didn’t resort to mass layoffs to offset the loss in revenue.