Aubertine, Russell Oppose Supermarket Wine
ALBANY - State Sen. Darrel J. Aubertine, D-Cape Vincent, and Assemblywoman Addie Jenne Russell, D-Theresa, are opposing Governor David A. Paterson's proposal to allow wine sales in supermarkets.
"I'm not supportive of it. The harm it will do to mom and pop liquor stores would be devastating," Sen. Aubertine said.
"We're talking about fundamental fairness here," Assemblywoman Russell said. "This bill would completely change the game. New York state set up the current rules, the current system, and small business owners agreed to abide by them. New York state needs to keep up its end of the bargain and stick by the rules that have been established."
The bill would allow wine sales in delis, grocery stores and gas stations licensed to sell beer, in addition to supermarkets. Liquor stores in turn would be allowed to sell food, cigars, lighters and other merchandise, but not cigarettes or beer.
While the measure failed last year due to lobbying efforts by the state's small business federation and others, Gov. Paterson says the bill could add $93 million to the state's coffers next year from fees paid by supermarkets to sell wine. Backers go even further, claiming the state would reap $147 million in new revenue over two years, and generate $22 million a year.
"It appears to me," Assemblywoman Russell said, "to be just another one-shot attempt to close the budget gap."
"The governor's revenue projections don't add up. They are overly optimistic," Sen. Aubertine added. "They don't take into account the loss of revenue that will be seen from the small businesses that don't renew their licenses or in the lack of wine sales they will be missing from liquor stores. I'm quite sure these numbers would be lower if these factors were taken into account.
"I don't see the creation of jobs," he said. "In fact, I see the contrary. And, I don't anticipate grocery stores hiring someone to just supervise wine sales."
He said liquor stores and wine selling businesses offer a higher level of expertise, as well, and that the Big Box chains would undoubtedly offer the cheapest wines at the highest mark-ups.
Assemblywoman Russell said she has been talking to local wineries, small liquor stores and lobbyist groups.
"They feel they can't compete," she said of small business owners. "They're concerned the result will be that large, international wineries and supermarket corporations will corner the market."
The result, according to a Cornell University study, would be the loss of an estimated 1,000 small liquor stores and the loss of an estimated 4,500 jobs across the state.
