Don’t Privatize Liquor Sales – That Error Would Cost the State Dearly

By Rev. Mark H. Creech
RevMarkCreech.org

North Carolina lawmakers will soon return to Raleigh, and once again, whispers of privatizing liquor sales are echoing through the halls of the General Assembly. The idea isn’t new. Every few years, someone suggests that the state should “get out of the liquor business,” arguing that private enterprise could run it better. But this argument mistakes alcohol for an ordinary commodity, and that error could cost our state dearly.

At a recent Government Efficiency Committee meeting, Rep. Keith Kidwell (R-Beaufort) revived the call for privatization, claiming the state should re-examine “the true cost” of the current ABC system. He even hinted at “cronyism” among local boards. In response, ABC Commission Chairman Hank Bauer warned that dismantling the system would cost the state $540 million in annual revenue and another $170 million to local governments. He’s right, and the danger runs far deeper than lost dollars.

Since the repeal of the prohibition, our state has operated under a control model for liquor sales. Unlike the 32 license states that hand alcohol retailing to the private sector, North Carolina’s citizens are the shareholders. Local ABC boards, not profit-driven corporations, manage liquor sales under uniform pricing, limited advertising, and restricted hours. The system works precisely because it balances freedom with responsibility, allowing legal access while protecting public health.

Privatization would mean thousands of new outlets, longer hours, relentless advertising, and deep discounting – all proven to increase alcohol consumption and the social harms that follow: addiction, family breakdown, impaired driving, and underage access. In every jurisdiction where privatization has occurred – from Alberta, Canada to Washington State – liquor outlets have multiplied and alcohol-related injuries, violence, and deaths have risen.

Proponents say competition would lower prices and make the system “more efficient.” But lower prices mean more drinking and more alcohol-related harms. Alcohol already drains an estimated $7 billion from North Carolina every year in lost productivity, law enforcement, and health-care costs – far outweighing any supposed gains. By contrast, North Carolina’s ABC system generates over a billion dollars in yearly sales and channels its profits into communities for education, law enforcement, and rehabilitation programs.

Privatization would deliver a one-time cash windfall from selling off state assets, then a permanent loss of steady revenue and oversight. Once control is gone, it’s gone forever.

This debate isn’t about whether people may choose to drink; it’s about whether the profit motive should govern the sale of a recreational drug that destroys more lives than any illegal substance. As John D. Rockefeller Jr. wisely said, “Only as the profit motive is eliminated is there any hope of controlling the liquor traffic in the interest of a decent society.”

Lawmakers who value life, family, and community stability must remember that alcohol is not like selling groceries or gasoline. To privatize its sale is to make more readily accessible America’s number one drug problem. Scripture reminds us, “Wine is a mocker, strong drink is raging: and whosoever is deceived thereby is not wise” (Proverbs 20:1). Wisdom dictates that we keep strong drink under the firmest control possible, not unleash it for profit.

The “C” in ABC still stands for Control, which makes our state safer. Privatization would exchange steady stewardship for reckless short-term gain.

Citizens should urge their lawmakers to keep the ABC system, not dismantle it. The people of North Carolina deserve a government that prizes responsibility over revenue and public health over the liquor business’s private gain.

For a deeper examination of this issue, read Rev. Creech’s article on privatization, published by the North Carolina Family Policy Council.

Privatization of Liquor Sales: What N.C. Would Lose by Shutting Down ABC

Rev. Mark Creech

Rev. Mark Creech

Rev. Mark Creech is a longtime pastor and former executive director of the Christian Action League of North Carolina. He now writes and speaks on issues of faith and culture and heads public relations for Return America.

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