• Reynolds opposes privatization of ABC stores

    PRESS RELEASE

    FROM: SENATOR ROSCOE REYNOLDS

    DATE: JULY 26, 2010

    Recent announcements in the media indicate that Governor McDonnell is proposing that Virginia get out of the liquor business and privatize retail and wholesale operation of the alcohol business. The media is stating that the McDonnell administration proposes to issue between 500 to 800 licenses across the state. At present, there are only 332 alcohol beverage control retail outlets in Virginia.

    The proposal would increase significantly the number of retail establishments selling liquor in Virginia.

    The McDonnell administration estimates that this approach will produce $300 million to $500 million for the state’s needs. The administration argues that additional profits could come through periodic fees that licensees will have to pay the state.

    I receive no complaints from constituents that Virginia has too few retail outlets selling liquor. However, I do hear from people who believe that there are presently too many retail outlets selling liquor. By that I mean that some complain to me that 332 alcohol beverage controlled state run whiskey stores are too many.

    While I am respectful that privatization would fulfill Governor McDonnell’s campaign promise to get the state out of the alcohol retailing business, I do not believe that creating between 500 and 800 retail outlets for liquor will make Virginia a better place.

    Most constituents who contact me indicate they support the present system with certain reservations. One of the reservations that is regularly expressed to me by constituents is that there are too many ABC stores in Virginia today.

    I hope constituents will let me know their reaction to the proposal being offered by the McDonnell administration and tell me if they think my objection to the proposal is right or wrong. I look forward to hearing from constituents their position on the privatization of the sale of liquor in Virginia.

    You may reach me at: Telephone: (276) 638-2315
    Fax: (276) 638-2293
    Mailing Address: Wm. Roscoe Reynolds
    P. O. Box 404
    Martinsville, VA 24114-0404
    E-mail Address: district20@sov.state.va.us