BONDS WILL WEAKEN NB LIQUOR

2006-05-08

FREDERICTON: The New Brunswick Government should stay away from the so called “booze bonds” to finance key investments in the province.

The Union representing NB Liquor employees, CUPE Local 963, believes the recommendation from the New Brunswick Self-Sufficiency Task Force will simply weaken NB Liquor financially.

“NB Liquor is a milk cow for the province. Last year, NB Liquor contributed about $125 million to the province’s wealth. In this year’s budget, the government asked NB Liquor to generate another $25 million in revenues. Why would you weaken such a healthy source of revenues by issuing bonds?” asked Brian Buckley, President of CUPE Local 963.

"Why should NB Liquor become the borrowing arm of the Province? We don’t see any advantages for this set-up. The Province can borrow at a cheaper rate than NB Liquor. This is why the Province is already borrowing money on behalf of the New Brunswick Electric Finance Corporation and other authorities”, explained Buckley.

“We are also concerned by the ownership of the Crown Corporation. The Task Force recommends that two seats be reserved for the private sector investors on the NB Liquor Board of Directors. This could be the first step towards the privatization of such a profitable corporation.

NB Liquor has been a steady source of revenues for the Province. These revenues are used every year to pay for education, health, road infrastructure, and other expenditures. NB Liquor should remain as such", concluded Brian Buckley.