Ontario’s Financial Accountability Office probing $225M deal to speed up alcohol expansion to convenience stores
Ontario’s Financial Accountability Office (FAO) is investigating a decision by the Ford government to accelerate the expansion of alcohol sales in the province to corner stores— a move that involves a payment of up to $225 million to The Beer Store.
The province announced back in May that while an exclusive deal with The Beer Store was set to expire in 2025, they had made arrangements so that convenience stores could start selling alcohol a year earlier. As part of that deal, the government agreed to reimburse the conglomerate up to $225 million. The province said the payment was to help secure jobs and smooth the transition.
Primer Doug Ford said at the time that the money was all “going to the front line people” and not into the pockets of the brewers.
However opposition parties were unconvinced. They slammed the deal, saying that money was sorely needed elsewhere, and there was no rush to expand alcohol sales.
In a statement Monday morning, the Ontario Liberal Party said that the province’s Financial Accountability Office has decided to launch an investigation into the decision in response to a request from the party.
“Ontario’s Liberals call on the Ford government to cooperate fully with this investigation and ensure the FAO receives the information he needs to complete his work,” Ontario Liberal Leader Bonnie Crombie said in a statement.
The Financial Accountability Office provides independent financial and economic analysis to the Ontario legislature.
The report is expected to be complete in early 2025. However, it could be hampered if there’s not proper access to information, the FAO warned.
Alcohol sales rolled out in corner stores around the province on Sept. 5.
The expansion of availability has also been slammed by health and addiction experts who say increased availability is correlated with increased consumption and health risks.
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