Queen’s Park will start treating Ontarians “like responsible adults” with an expansion of the availability of beer and wine, says Finance Minister Vic Fedeli.

But sources told the Star that breaking the province’s existing 10-year agreement with the Beer Store could cost taxpayers $100 million in penalties.

Fedeli, who will table the Progressive Conservative government’s first budget on April 11, told 700 people at an Empire Club of Canada luncheon that Ontario is moving “into the 21st century.”

“‘Quick’ doesn’t quite capture our government’s pace thus far at Queen’s Park. For the Star Trek fans in the audience, we’ve been moving at ‘warp speed,’” the treasurer said Thursday.

“It’s time for everyone in government to start acting like the competition is coming, and treat people like responsible adults,” said Fedeli.

“We are taking steps to revolutionize the way we deliver services, and that includes how people buy alcohol,” he said.

Fedeli emphasized the province has no plans to sell off its lucrative Liquor Control Board of Ontario monopoly, which operates 660 outlets and about 210 rural agency stores.

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“Our government is actively working to expand the sale of beer and wine to corner stores, box stores, and even more grocery stores,” he said, touting plans to build upon the previous Liberal government’s expansion of sales to 450 of Ontario’s 1,500 supermarkets.

“We made a commitment during the campaign to provide consumers with greater choice and convenience, and we plan on delivering. We firmly believe this will not only open up the province to more choice, it will lead to competitive prices, and without the need to privatize our valuable government assets.”

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Fedeli — who, like Premier Doug Ford, does not drink alcohol — said “Ontario has the lowest density of retail outlets selling beer, wine, cider and spirits in Canada.”

“Quebec has over 8,000 retail stores selling beverage alcohol. In Ontario, any guesses? Less than 3,000.”

That tally includes two privately owned Canadian wine shop chains and the Beer Store.

Fedeli did not mention that under the 10-year master framework agreement signed with the Beer Store — the 450-outlet retailer mostly owned by the parent companies of Labatt, Molson, and Sleeman — the province could be on the hook for massive financial penalties.

That carefully worded accord — hammered out by former TD Bank chair Ed Clark, who was then-Liberal premier Kathleen Wynne’s privatization guru — is in place until 2025 and Queen’s Park would owe the Beer Store damages if it is broken.

Under the terms of that deal, the Beer Store agreed to spend $100 million on capital improvements to its stores in the first four years of the pact.

Because the brewers have already made those investments, a source noted “the Beer Store, Labatt, Molson, and Sleeman would all have contract and tort claims against the government, as well as ministers and other government officials involved in breaching the master framework agreement.”

“The province explicitly promised and agreed that if it were found to have breached the master framework agreement, it would cure such breach even if the cure required legislative change,” said the source, speaking on condition of anonymity in order to discuss internal deliberations.

NDP Leader Andrea Horwath said Ontarians should be leery, pointing out to the expected legal fallout from the government’s unilateral cancellation of 758 renewable energy projects and its legislation designed to prevent companies affected from suing for compensation.

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“We don’t know what the price is. The premier needs to come clean on what the cost of breaking another contract is,” said Horwath.

Green Leader Mike Schreiner called on the government to open convenience stores strictly to Ontario craft beer, Ontario wines with the Vintner’s Quality Alliance seal and Ontario craft distillers to give their businesses a boost.

“Local products and local corner stores, that I’m open to. If it’s just going to be another outlet for Big Beer, I’m less enthused about it,” said Schreiner.

Fedeli acknowledged to the Empire Club that “we have our work cut out for us.”

That’s why he has retained former Alberta cabinet minister Ken Hughes, who has some expertise in the field, as a special adviser.

While Alberta privatized alcohol sales more than 25 years ago, beer remains cheaper in Ontario than it is there.

A 24-pack of a popular brand like Labatt Blue or Molson Canadian costs $10 more in Alberta than in Ontario, where a case goes for about $38.

Fedeli insisted Ontarians would not be crying in their beers following his budget despite Ford’s austerity push that could see $6 billion in cuts.

“Contrary to what our opponents would have you believe, our approach to restoring balance to Ontario’s books will be measured and thoughtful,” the treasurer said.

“We will not balance the budget at the expense of our critical programs. We will not make life harder for families in this province by raising taxes,” he said, promising to eliminate a deficit that has ballooned to $13.5 billion due to, among other things, accounting changes.

“I call the path to balance the Goldilocks approach. It can’t be too short because no one would believe it. And it can’t be too long because anyone — except the previous Liberal government – could do that. It must be just right.”

With files from Rob Ferguson

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Robert Benzie is the Star’s Queen’s Park bureau chief and a reporter covering Ontario politics. Follow him on Twitter: @robertbenzie

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