Cheers! Selling Va. liquor stores to aid transport

Cheers! Selling Va. liquor stores to aid transport

McDonnell

   Virginia Gov. Bob McDonnell last week gave details for the first time about his proposal to privatize the state-owned liquor stores and use the proceeds for transportation infrastructure.
   The plan, which came in the form of recommendations to a state commission on government reform and restructuring, would raise $500 million from the auction of 1,000 retail licenses. The money would be placed in a Virginia Infrastructure Bank, which would use the money to issue loans and grants to localities for transportation projects based on congestion relief and economic development.
   McDonnell said the state would still generate the same amount of tax revenue from sales with private businesses selling liquor instead of state Alcohol Beverage Control (ABC) stores.
   The governor's plan would also privatize wholesale liquor distribution, with the state focusing on enforcing of distilled spirits laws.
   The state will also make an additional $33 million on the sale of the ABC warehouse in Richmond and 19 state-owned outlets.
   'This is an opportunity to put half-a-billion dollars into transportation simply by eliminating an outdated government monopoly ' By privatizing ABC, Virginia will join the majority of states in the nation that have long recognized alcohol distribution is not a core function of government. Transportation, on the other hand, is a core function and this plan will deliver immediate results for Virginians frustrated by long commutes and stalled construction sites,' McDonnell said in a statement.
   The liquor store privatization was endorsed by the Virginia Retail Merchants Association and the Fairfax County Chamber of Commerce.
   The government reform committee will vote the governor's recommendation at a meeting the week of Sept. 27.
   (To read more about Virginia's innovative transportation solutions for freight and motorists alike, see 'Virginia is for freight,' September American Shipper, pages 54-62.) ' Eric Kulisch