Canada’s most-populous province has raised the minimum price of case of bottles from CDN$24.00 to CDN$26.50.

Well, in this economy I suppose that shouldn’t be any sort of a surprise. Except, apparently, it’s not economical, but rather smacks of the new Temperance movement.

Toronto Star: Ontario raises minimum price for beer

That 6.7 per cent increase in the floor price of a case, bottle deposit excluded, has nothing to do with supply-and-demand, production costs, overhead or distribution expenses.

Instead, the Liquor Control Board of Ontario sets minimum prices as part of its “social responsibility” mandate established in 1993. Translation: If alcohol is too cheap, you may abuse it.

But documents obtained under Ontario’s freedom-of-information law show that the Ministry of Finance, not the LCBO, pressed for higher beer prices – raising questions about the arm’s-length relationship between the two bodies.

“The Ministry of Finance recommends an increase to the minimum retail price for beer effective November 24, 2008,” says a memo distributed to board members for their Oct. 15 meeting in Toronto.

With only 30 minutes to approve a dozen legal issues, including the minimum price increase, the matter appears to have received limited debate.

“After due deliberation and consideration of the materials and recommendations as set out in them, a motion was made, seconded and carried,” say the meeting minutes.

The written materials distributed to board members provide no explanation of why the new minimum was required, how it fit with the social responsibility mandate, how the increase was calculated and why it was required by Nov. 24.

Instead, the documents merely set out the mechanics of the change, which also affects coolers and low-alcohol spirits, and cite the recommendation of the Ministry of Finance. The last time the minimum price for regular-strength beer was adjusted was October 2005.