Truth a casualty of privatization
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The ongoing debate over the future of the Pennsylvania Liquor Control Board makes it plain that the truth is the first casualty of the privatization wars, especially if that “truth” belongs to a vested interest such as a restaurant owner. I am referring to the July 21 letter from Michael Passalacqua, “Liquor must be privatized.”
Let me be crystal clear: I am the president of the union that represents roughly 3,500 of our fellow Pennsylvanians who work in the stores operated by the PLCB. I have a vested interest in making sure these family-sustaining jobs are not eliminated so that large-chain retailers can make more money at our expense.
But facts are facts and it is important for your readers to understand what privatization really means for consumers:
By Passalacqua’s own math, the latest liquor privatization bill that was vetoed by Gov. Tom Wolf will guarantee higher prices. The legislation will allow private wholesale and retail markups of 20 percent to 35 percent each, on top of the current liquor tax that exists. This is more than our current markup structure and will cause prices to skyrocket. Several GOP lawmakers admitted this much during committee meetings when discussing the latest liquor privatization bill.
Also, an independent analysis by Public Financial Management, which was commissioned by former Gov. Tom Corbett, found prices will increase in many parts of the state, especially in rural areas. PFM is an independent analyst hired by an ardent privateer.
Finally, please understand restaurant owners now receive a 10 percent discount on purchases from the PLCB. There is no guarantee that the private sector will continue providing that price break and there is no guarantee these businesses have to pass along that break to their customers.
Wendell W. Young IV
Harrisburg
Young is the president of the United Food and Commercial Workers (UFCW) Local 1776 in Harrisburg.