Virginia Gov. Bob McDonnell (R) argued again today for his proposal to privatize the commonwealth's liquor stores by auctioning off licenses and using the windfall for transportation construction.
McDonnell raised this idea during last year's campaign, but so far has met with skepticism. Critics fear the state will lose revenue and that privatization would mean less efficient regulation of alcoholic beverages.
Speaking on WTOP radio today, McDonnell argued that not only would the state receive a windfall from the sale of the licenses, but it would continue to benefit financially through annual taxes and fees, The Washington Post reported on its website.
The governor made an argument that should resonate in Montgomery County, Maryland, the nation's only county controlled liquor distribution system, and in other control states such as Pennsylvania:
"I don't think selling alcohol is a core function of government -- neither do most people,'' he said. "I don't think it's a core function of government to do it and I think the private sector can run the stores more efficiently. There are free market incentives to do it."
More efficiently? Let's see, in Montgomery County, all alcoholic beverages are distributed out of an un-air conditioned warehouse (and of course we're baking in record heat this summer), with only one delivery per licensee per week. And the county tacks on a 25% surcharge for privilege of cooking your wine for you. Not to mention that most MoCo liquor stores have all the charm and warmth of a methadone clinic. The situation has gotten a little better - we have a few privately owned stores with dedicated owners that are willing to make the extra effort to work with the county and distributors. But the system is archaic and, like Virginia's, should be privatized.
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