Nunavut residents buying more booze out-of-territory

Nunavummiut bought less booze from the territorial liquor commission last year, but it doesn’t mean more people are going on the wagon.

They’ve just figured out cheaper ways to buy a bottle.

The Nunavut Liquor Commission’s 2013-14 annual report shows the territorial agency sold more than 575,000 litres of alcohol in 2013-2014, worth more than $5.3 million.

But the commission’s total revenues decreased by nearly $416,000 last year, amounting to a 6.5 per cent decrease over 2012-13.

If you factor in new staff and an increase in expenses and travel last year, the commission’s net income decreased over the previous year by $272,400, or 20 per cent.

This is the commission’s 10th year of operation since taking over responsibility for territorial liquor sales from the Northwest Territories government in 2004.

Since 2010-2011, when customer sales alone topped $2 million, those sales have steadily declined to last year’s $1.79 million.

“The decrease in sales could be attributed to local air carriers providing a more competitive rate to consumers,” the report reads.

Kivalliq customers, especially in Rankin Inlet, have discovered it’s cheaper to order beer, wine and spirits from Churchill, Man., rather than ordering those things from the commission.

Customers pay a $2 import fee per litre of wine, for example, if they want to order it from outside Nunavut. They might also have to pay an administration fee to the alcohol vendor along with the cost of shipping.

If they order wine from the government, they pay $7.96 per litre of wine, plus a 27-cent administration fee per litre, plus $10 per order for handling and cartage and then a bottle deposit charge.

Then they must pay the freight cost on top of that, once the order arrives. Freight charges vary depending on distance, community and carrier used, the report says.

While the report doesn’t say how many import fees were paid last year and how that has changed over time, it does say that revenue from import fees grew by $25,000 between 2012-13 and 2013-14.

The fees for importing different types of alcohol from outside the territory vary from 56 cents per litre of beer to $3.75 per litre of spirits.

But if you imagine that all those import fees last year were for wine, that would mean 12,500 more import permits were purchased last year over the year prior.

Rankin Inlet seems to be taking advantage of cheaper imported booze more than any other Nunavut community.

In the five years prior to 2013-14, liquor commission customer sales decreased in Rankin Inlet by 71 per cent.

The annual report says that Nunavut licensees — restaurants and bars in Nunavut — are reporting their sales are also decreasing, though no actual figures are given.

Licensees say “fewer major capital projects have decreased the number of seasonal workers that may patronize their licensed establishments,” the report says.

But, it could be simply that customers are “choosing to consume alcohol in the comfort of their own homes.”

The report makes no mention of illegal sales or bootlegging.

Customer sales in Iqaluit and Baker Lake combined make up roughly half of the commission’s customer sales last year, with each community purchasing about $450,000 worth of alcohol from the territorial regulator.

“It is interesting to note that the revenue from wine sales have increased significantly over the past five years,” the report says. No other details are given.

While overall sales might be decreasing, the commission still contributes a healthy sum to the territorial government in the form of net transfers.

However, it’s also interesting to note that the commission transferred $1.3 million to the Government of Nunavut in 2014, but in 2013-2014, it paid out more than that in salaries alone: $1.8 million.