Changing the Culture of Fear & Paranoia: The Recommendation That Could Change How Liquor Policy is Enforced

For as long as I can remember there has been a dark cloud of paranoia that has hung over many BC liquor manufacturers & licensees who fear that their livelihoods, namely their liquor-related businesses and the licenses associated with them, are in jeopardy if they question provincial liquor policy and the decisions made the Liquor Control and Licensing Branch (LCLB), the Liquor Distribution Branch (LDB) and their employees.

But all this may be about to change as a result of one of the 73 recommendations made by John Yap in his BC Liquor Policy Review Final Report. In his report, Yap is recommending the BC Liberals allow for,

 "applicants and licensees seeking a review of LCLB decisions should have access to a new and separate decision-making body outside the licensing branch. The Ministry of Justice should review current processes and determine how best to provide independent decision-making for those seeking appeal."

This recommendation, which is getting no press coverage or water cooler time, is the recommendation that could drag our liquor policies, and how they are implemented and enforced, into the 21st Century. This could also be the recommendation that allows liquor related business owners do what they want to do, namely run their businesses without undue interference and inconsistent application of BC liquor policy from alcohol related government agencies.

By creating an affordable, independent system for licensees and liquor licensee applicants to appeal LCLB & LDB rulings, inspectors & upper echelon bureaucrats will be held accountable for their decisions which may cause some of the less scrupulous and less knowledgeable types to think twice before acting. Those seemingly arbitrary and illogical rulings and decisions we all hear about will now be examined by someone who, in theory, will have a completely objective viewpoint. Licensees will no longer have to fear retribution as much as they will have an avenue for lodging complaints when they feel they have been done wrong.

It may also provide some consistency to how the policies and laws are applied and create case examples of rulings that could work similar to case law in the courts, setting precedents that can be used in the future when similar situations arise and there is conflict between licensees and the powers that be enforcing and implementing liquor policies.

By having rulings for specific issues on the record the ability to interpret and manipulate policies could be eliminated or at least decreased. And if a particular inspector or bureaucrat keeps having their actions and decisions hauled into and overturned by this appeal process, maybe, just maybe, problems will identified and actions taken to correct the problems like supplying proper support and education to those who are abusing their power or making questionable rulings. And if the problems continue to persist, maybe, just maybe, those not doing their job in an ethical and equitable manner, will be disciplined and possibly removed from those positions of power.

I know when I met with Yap, as a part of the CAMRA BC presentation during the review, he was very interested in the idea of an independent appeal process and he did acknowledge that he had heard from several sources that many licensees fear speaking out even when they believe they are 100% in the right. We had quite a long discussion about this and I got the distinct impression that Yap wanted to ensure that there were checks and balances in place in regards to enforcement of liquor policies. He also mentioned he would like to see liquor inspectors get more education about the policies they are enforcing and the mandate they are carrying out.

I get a regular flow of emails and telephone calls from liquor license holders and people trying to obtain liquor licenses, who ask me to look into questionable and at times seemingly arbitrary decisions made by our province's liquor bureaucrats and their minions, but almost all end their requests with the following stipulation, "Please don't use my name or anything I have told you because I don't want any trouble (from the LCLB or LBD)."

At the moment, licensees know they have little-to-no recourse if they find themselves on the wrong side of their local liquor inspectors or the bureaucrats who work in the LCLB & LDB head offices as currently there is no appeal process built into the system. Once a decision has been made and/or a penalty imposed, that is it, end of story, no matter how nonsensical or unjust. Licensees often feel helpless in this very unbalanced system and those enforcing and implementing policy know it.

Currently, front line LCLB liquor inspectors, if they are so inclined, have been free to make rulings as they see fit, interpreting the often poorly and vaguely worded policies and laws to their advantage, making rulings and decisions that cost licensees crippling amounts of money, with little fear of being held accountable and at times with little working knowledge of the policies and laws they are enforcing. I am not saying all liquor inspectors are like this, but it seems like licensees from all corners of the province have had negative experiences.

Those higher up the bureaucratic food chain are free to direct these liquor inspectors as they see fit. In the cases of those in positions of power, they, in certain instances, have the ability to write liquor policy on the fly, basically unchecked as the politicians who are supposed to be responsible have little-to-no interest or knowledge of what is going on and only pay attention when the shit hits the fan. Politicians rely heavily on the advice of the top bureaucrats and the top bureaucrats have a vested interest in making things as easy on themselves as they can, pushing their own private agendas knowing they have little chance of having to answer for their decisions unless something goes wrong and the media get onto a story that reflects negatively on the government's policies.

Laws are often enforced arbitrarily and inconsistently. Both the LCLB & LDB hide behind the often outdated and nonsensical liquor policies when it suits them to enforce them and ignore those same policies and laws when doing so suits their needs.

I know some of you out there think I am just being dramatic and trying to cause trouble here but trust me, I have sat down with liquor inspectors who have no idea what they are talking about, who make bizarre decisions based on their interpretation of the liquor policies or have an unwillingness to try to address problems without being unnecessarily heavy-handed. I have also seen cases where the LCLB & LDB have seemed to rule or act for no other reason than to put people who complain or question policy in their place. If you want some specific examples check out here, here, here and here.

Having said that, I know that there are many who work in the alcohol bureaucrat arms of government who are very honest, helpful and try to do what they can to be fair and equitable to licensees and liquor-related businesses but they are overshadowed by those others I have been talking about.

I hope the government looks hard at creating a system or appeal that will help create a far and equitable process for everyone involved in the BC liquor industry. Liquor inspectors, the LCLB & those who issue liquor licenses  and enforce the laws have a job to do, which is enforce liquor policy, but this enforcement needs to be consistent, predictable and both those abusing the policies and breaking the law and those enforcing the policies and laws need to be held equally accountable.

My Guesses Re Liquor Law Changes - Part II

A few days ago I wrote a post about some of the "quick win" changes I thought we would see come out of the BC liquor policy review and now I want to look at some of the bigger, more complicated and controversial changes I think will occur down the road.

It seems I am a day late in posting though as Mr Yap has stolen the thunder and announced that he has recommended that booze be sold in BC supermarkets, due to overwhelming public support for the idea. Mainstream media, blogs and and social media are all onto Yap's lone reveal in regards to the 70 recommendations he put in his report to to Attorney General and Justice Minister Suzanne Anton.

It became very apparent to me and others who met with Yap and who followed the #bcliquor review process that the sale of alcohol in BC supermarkets, once thought to be an impossibility, was definitely one the table and being considered. But Yap's announcement does not guarantee anything as the idea has to be approved by Anton and the rest of the Liberal brain trust.

Personally, I think it will happen, but we will only see alcohol sold in larger retail chains, with them having to build a store within a store, to ensure limited access to minors and to segregate the booze from shoppers who may struggle with addictions issues and from those who find the presence of alcohol troubling. As well, the store will have to secure a liquor retail license, which looks like it will be no easy task as Yap has recommended not to increase the number of licenses above what now exists.

I also think you will see the government keep a stranglehold on minimum pricing for booze so that these large retail chains do not sell alcohol at rock bottom prices. It will take the government until 2015 to roll this out, working out the bugs with few trial runs, but I honestly think you will see at least some version of booze in supermarkets, Costco outlets, Walmart,  etc., by the end of 2015.

I also do not think as many outlets will not even bother looking into selling booze as it is going to be a major hassle and expense to build a segregated area for booze, deal with the LDB, put up with liquor inspectors and all the other joys that come with selling booze in this province.

And, of course, they are going to have to obtain a license to sell booze and, as I mentioned, this will not be an easy proposition.

I am going to write another post in the next day or to talk about the whole concept of booze in supermarkets and address some of the ridiculous ideas being floated by those against the idea, like the Alliance of Beverage Licensees (ABLE), health authorities and temperance movements.

Another change I think will be implemented, but that will take a long time to come into play is one that simplifies the liquor license system. I think the government will move towards a one-license system, but will start the move by making changes that will allow food primary licensees apply for endorsements to their existing licenses that would allow them to operate as a liquor primary after a certain hour in the evening and that will allow liquor primary licensees apply for endorsements that will allow them to have minors in their establishments, in the company of responsible, sober adults, up to a certain point in the day.

In the end, I think the Liberals will work towards a license to simply sell booze and the licensee will decide what type of establishment and clientele they want. The restrictions will be listed on the license, an example possibly being "mixed ages until 6 PM, +19 only after", so as to put all licensees on a level playing field. I think you will also see the silly restrictions on dancing in restaurants, music in restaurants, etc., removed.

The lines are so blurred right now as to who is a bar and who is a restaurant. Think about it. The law allows me to take my 3-year-old daughter into a restaurant with dozens of beer taps, a large selection of wines, spirits and hundreds of seats, even when it is packed and happening at 8 PM, yet the law forbids me to take her into a quiet, mellow neighbourhood pub on a Sunday afternoon to enjoy a brunch.

Another major change I think we will see is the process for getting a listing in government liquor stores (GLS) modified to help support small, local manufacturers and to better give BC consumers access to locally produced beers, wines and spirits.

Many local breweries, smaller wineries and artisan distilleries cannot sell via GLS outlets because they do not meet the outdated production thresholds that are in place to get a listing. The current model is based on large production manufacturers, you need to produce enough of a product to supply 40 GLS locations, virtually making it impossible for small, local breweries, wineries and distilleries to sell via the BC Liquor Stores. Some GLS outlets are forced to break the law to put their local products on their shelves.  I think they are going to give the local GLS management more freedom to stock what they want to stock, as opposed to what they are told they can sell by LDB head office, giving the consumers what they want, as opposed to allowing some bureaucrat with little-to-no-knowledge of some products decide what the consumers want.

To compliment this, I think the LDB will be directed to create special areas to highlight BC products, beyond the current BC wine sections, and put more emphasis on promoting BC products. I think local manufacturers will also be able to deliver directly to GLS locations.

Lastly, I think you will see the LCLB and their liquor inspectors be stripped of some of their current powers. The LCLB and their enforcement folks have long been the law, END of STORY. Liquor inspectors now have huge discretionary powers to interpret the often ambiguous and poorly worded liquor policies as they see fit and to enforce as they see fit. There is no current appeal process if a liquor inspector nails a licensee with an infraction and only through an expensive judicial review can a licensee defend themselves.

Because the liquor inspectors operate without fear of being held accountable for their often bizarre and random rulings, there is a fear amongst licensees in regards to getting on the wrong side of the LCLB and their inspectors. I think you will see an independent review board set up that will be relatively inexpensive to access and which will deal with licensee appeals to decisions made by inspectors. Yap seemed very interested in the subject of curtailing LCLB powers and increasing training and knowledge among liquor inspectors to help rid the province of this culture of fear among business owners selling booze in regards to their often random and arbitrary liquor inspectors who can currently shut them down with no recourse by the licensee.

These ideas are not based in fact, just my thoughts and they are just a drop in the bucket compared to what may be in Yap's recommendations. As I mentioned, there have been 70 recommendations put forward and no one but Yap, his team and the office of the Justice Minister and Attorney General know exactly what they are. I hope they make the report public soon so we can have some real debate and discussion about what may happen in the next few years in regards to liquor policies in this province.