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Published: Nov 25, 2009 02:00 AM
Modified: Nov 23, 2009 10:11 PM

Oppose privatization of local liquor sales
 
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A spirited (no pun intended) alcohol-related debate is taking place in North Carolina, following a legislative study of the Alcohol Beverage Control System. That study recommended modernization of our existing State ABC system.

Long-eyeing this prize, some alcohol forces have seized the report as an opportunity to advance their economic interests by urging privatization of our liquor stores and away from state control.

State law currently prohibits the sale of liquor by private retailers. Instead, a liquor control state, our legislature has wisely chosen to leave the sale of liquor to the sound judgment of localities. Upon citizen approval, ABC boards are the only legal entity authorized to sell spirits. Local boards are independent political entities, with each board overseeing its own ABC outlets. In North Carolina, 158 boards oversee 405 stores, which earn total annual revenues of approximately $700 million.

Some boards are less profitable than others, and, admittedly, boards are in need of more state guidance.

Aside from local control of liquor sales, the beauty of this current design is that the ABC system, overseen by the North Carolina Alcohol Beverage Commission, is totally self-sustaining, receiving and requiring no state appropriations. Operating entirely from its sales revenue, they provide additional monies to the general fund for operation of state government. Other profits from the sale of liquor are mandated to support law enforcement, alcohol education and rehabilitation.

I don't dispute the conclusion that the system is in need of modernization. But while parts of the current system may be outdated, the need for state control of liquor sales is not. Instead, the General Assembly should seize this opportunity to make the system more efficient.

There are many concerns about the privatization of liquor stores, including its impact upon underage drinking. Studies have found that availability of liquor stores has a direct impact on underage consumption, including increasing binge drinking among teens. With its access to a large undergraduate population in Chapel Hill, it's certain that historic Franklin Street would become a coveted spot for liquor store operators.

National crime demographics consistently show a relationship between liquor store presence and enhanced criminal activity. Some studies have found the close relationship between liquor stores and robberies, drugs and other vice crimes.

Gov. Perdue has appointed a Budget Reform and Accountability Commission (BRAC) to enhance government efficiency, save money, and increase revenue. Laudable purposes, to be sure, and best accomplished, not by surrendering revenues to private interests, but by enhancing the efficiency of the existing state-controlled system.

If our current system is broke, fix it. But, don't abandon the state-controlled system in favor of privatization. I urge you to contact your representatives in Raleigh and let them know where you stand on this issue.

Dale Pratt-Wilson is the director of the Coalition for Alcohol and Drug Free Teenagers of Chapel Hill & Carrboro. Contact her at dalepratt-wilson@nc.rr.com
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