PATTERSON’S WAR ON SMALL BUSINESS

January 24, 2010 ·

In Governor Patterson’s latest budget proposal, he again is declaring war against small businesses, namely liquor stores. He wants to allow grocery stores to sell wine. Below is a re-print of my NCN column “In My Opinion” I wrote February 11, 2009 titled “ Last call for alcohol” on this topic, which like Dracula will not die.
Here is what I said back then:


IN MY OPINION: Last call for alcohol

By Anthony Bazzo

It has been reported that unemployment in New York State could reach ten percent by the end of the year. Tucked into Governor Patterson’s proposed budget is an item that will help New York reach that figure. That item is to allow the states 19,000 grocery stores and delis to sell wine in an effort for the state to get an estimated 100 million dollars in new license’s fees. This will, in my opinion put the majority of the 2,759 independent licensed liquor store owners and their employees on the unemployment line. This will also make the person who stocks the cheerios your wine merchant. Once you let the state take this step, and liquor stores start closing, there will be no stopping them from letting delis and grocery stores from selling hard liquor. This is one slippery slope we should not go down.

There is a reason why liquor and wine were singled out after prohibition to be sold only in stores that sell only those items. It was to control bootlegging, tax collection, and sales to minors. Those concerns were valid then and still valid now. The State liquor Authority(SLA) already has their hands full in monitoring sales and compliance to laws and regulations of the 2,759 licensed stores now. What are they going to do with another 19,000? Are we now to increase the public payroll to handle this increased work load? Believe me there is no more regulated industry in New York than the liquor industry. This measure, should it pass will increase the number of minors getting their hands on wine and increase DWI’s. Unless this is the governor’s idea of curbing global warming by getting more cars off the road through confiscation.



The purchase of liquor and wine was purposely made inconvenient. The powers that be back then did not want to be seen as encouraging the consumption of alcohol. It is a system that works. This is not the time to change the system, nor will it ever be. This will also affect the small wineries that depend on knowledgeable sales people to sell their product to the consumer. Wine drinkers are not likely to purchase a new product without knowing something about the winery. The big grocery stores will in all likely hood only carry jug and big brand name wines. These are the inducements that the independent liquor store owner uses to entice customers. There is no way an independent liquor store can survive on just selling niche wines and liquors.

You will also notice in the local sting operations meant to see if minors are purchasing alcohol, liquor stores rarely make the list of non-compliance. This is because minors do not usually work in liquor stores as compared to delis and grocery stores and so the less likely hood of friends of workers being able to purchase alcohol. The vigilance of independent liquor stores regarding proof of age cannot be discounted. In fact liquor stores are a major employer of seniors and retirees who supplement their income working part time in these stores. It has been proven that small businesses are the major employers. This measure will destroy a segment of small business that employs over seven thousand people, without adding workers to grocery stores. Let’s add into the equation the loss of jobs in the wineries due to loss of sales of their products. Many of these wineries are located right here in New York on Long Island and the Finger Lakes region. This is not the way to spur New York’s faltering economy.

There is no upside to this legislation other than convenience. What ever extra money that state realizes in new licenses, will be lost to lost payroll and sales taxes, increased unemployment and new SLA workers on the public dole. This measure will minimize the selection of wines available. This measure has been pushed by the big chain grocery stores since the early eighties and no governor or legislature has ever seen the wisdom in this. It was unwise then and it is unwise now. My father told me never fix what works. This is my opinion, you may beg to differ.