Government’s liquor adviser dismisses notion of big penalties to allow corner-store sales
FILE PHOTO: Ontario Premier Doug Ford speaks to the press following the First Ministers' Meeting in Montreal, Quebec, Canada, December 7, 2018. REUTERS/Christinne Muschi/File PhotoLegal experts say Ontario Premier Doug Ford still holds the upper hand in talks with the brewery-owned Beer Store to allow convenience stores across the province stock beer, despite industry warnings that Queen’s Park could end up paying hundreds of millions of dollars in damages.
Under the contract’s terms, an arbitrator could award damages based on a range of new costs the Beer Store and its brewer owners could face if beer were made available at corner stores, including severance payments to laid-off Beer Store workers or even the higher costs of distributing beer to so many new locations.
“I think there’s tremendous pressure ... on a government not to act like that, because they will be called out,” Prof. Hutchinson said, still predicting that a court challenge to any future unilateral move by the Ford government to break the deal would stand little chance of success. “Forgetting this situation, it seems entirely reasonable that future governments should not be bound by earlier governments. That’s a principle of our democracy.
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