Richard Gleeson
Northern News Services

Yellowknife (July 20/01) - When a second Yellowknife liquor stores opens, likely next year, rules governing alcohol sales will change dramatically.

It was standing room only in a small conference room Tuesday, as the NWT Liquor Commission hosted an information session about a call for proposals for two liquor stores. - Richard Gleeson/NNSL photo

In a move toward de-regulating liquor sales, the NWT Liquor Commission will allow each store to be run as a regular business, setting prices, paying for inventory in advance, covering the cost of breakages and other inventory losses.

Ron Courtoreille, general manager for the commission, announced the changes at an information meeting Tuesday for prospective contractors. The commission will likely be issuing a call for proposals Monday.

A panel of senior government officials will assess the proposals and award 10-year contracts on Sept. 21.

The operators of the lone liquor store said the addition of another outlet will result in higher alcohol prices.

"In my opinion, the way they're doing it now is the most cost-effective for consumers," said Edward Eggenberger.

Eggenberger, and his father Albert, say the duplication of costs -- two managers, two utility bills, two sets of staff -- on roughly half the sales volume will be passed on to consumers.

A business controlled by the Eggenberger family has run the liquor store for 27 years. Last year it rang up $11.8 million in sales. The two said they will be submitting a proposal.

The Eggenbergers cautioned the liquor store is not the lucrative enterprise many believe it to be. They recalled one operator in the 1970s backed out of his 10-year commitment seven years in because it was not as profitable as projected.

Courtoreille said the commission will not know the impact the new rules will have on prices until it sees the proposals. He said the commission will be relying solely on competition to prevent price-fixing.

A number of questions asked at the meeting remained unanswered.

Prominent Yellowknife businessman Les Rocher, who owns a building a bar operates out of, wanted to know if he is eligible to submit a proposal. The commission is insisting contractors have no "direct or indirect involvement in a commercial establishment that owns or houses a licensed premise."

Others wondered about the impact the opening of a wine and beer specialty store would have on their proposals -- "That's a scary thought when you're projecting sales of $5 million," said one businessman.

Courtoreille said the commission has said only that it would consider authorizing the opening of a specialty store.