Assemblymember Cahill Speaks at News Conference Promoting Small Business

April 5, 2010

Assemblymember Cahill voices his opposition to a proposal that would allow wine sales in grocery stores. The rally at the New Paltz Regional Chamber of Commerce drew a supportive crowd of liquor retailers and local business people.

New Paltz – Assemblymember Kevin Cahill (D-Ulster, Dutchess) joined local businesses, independent wine sellers and public safety advocates to rally against Governor Paterson’s proposal to allow the sale of wine and grocery stores. The event was part of the final push to stop the measure before the 2010-11 State Budget is passed.

“In these tough economic times, the State has the responsibility to protect small businesses and look out for working families,” said Assemblymember Cahill. “We need to create a responsible budget plan that does not overburden those who are already struggling.”

The Governor included the plan in his 2010-11 Executive Budget, stating it would generate $300 million in revenue for the state through taxes and fees on liquor licenses. This number is an overestimation and assumes that every grocery and convenience store in New York will apply for a liquor license within the next year. The proposal was not included in the budget resolutions passed by the State Assembly or the State Senate.

“Allowing wine in supermarkets, big box stores, convenience stores and gas stations may have sounded like a good idea to some, but to me it is little more than a one-shot gimmick to create an illusion that our state budget would be in balance,” said Assemblymember Cahill. “It would not raise anything approaching the revenue their lobbyists claim and it would create a bureaucratic nightmare in the State Liquor Authority, an agency already struggling to eliminate huge backlogs. It would drive small merchants to shutter their doors.”

If the proposal is adopted, it could have devastating effects on local businesses. The industry estimates that the sale of wine in grocery stores would result in the close of over 1,000 liquor stores and the loss of more than 4,000 jobs.

In addition to the economic aspects, many are worried that increased access to wine will lead to a higher rate of underage drinking. Making wine available in grocery stores, establishments that often employ teenagers, has become a growing concern among parents and public safety advocates.

“Assemblyman Cahill has once again demonstrated he understands that small businesses, whether wine stores or the local wineries that are critical to our tourism industry, are the foundation for our local economy,” said Tom Edwards, a New Paltz small business owner and a board member of the New York State Liquor Store Association. “We appreciate his commitment to protecting jobs, as well as protecting teenagers from a dangerous plan that would inevitably lead to an increase in underage drinking.”

The Assembly’s budget resolution included a number of measures to help local merchants, including a $25 million appropriation for the Small Business Revolving Loan fund, which aims to help a wide variety of new and existing small businesses. Funds have also been reserved for Minority-Women Owned Businesses, Community Development Financial Institutions and the Entrepreneurial Assistance Program.

"Supporting our local wine shops is one of the ways I am standing up for small, family owned businesses and working families struggling to make it in these difficult times,” said Assemblymember Cahill. “I am proud to have joined several of my colleagues in leading this fight and we will continue until this devastating proposal is soundly defeated."

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