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Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.

 

SAQ could get better deals, auditor general's report says

Thursday, May 26, 2016 > 09:46:03
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(CBC)

Annual report says liquor board hasn't modified its price markup structure

Quebec's auditor general says the province's liquor corporation, the SAQ, isn't doing enough to get the best prices.

Guylaine Leclerc believes more can be done when it comes to volume discounts as well as revenues from in-store product placement.

Leclerc said the SAQ has the negotiating power to get a better price. 

"The SAQ is one of the biggest buyers of wine in the world," Leclerc told a news conference.

In her annual report tabled today, Leclerc also notes the SAQ has not modified its price markup structure over the years.

The report states the liquor corporation has not taken into account the importance of store promotions, which totalled $129 million in 2014-15.

Leclerc also points out a discrepancy between when stores are busiest and when they are most staffed.

Government computer contracts questioned

Leclerc also said the province isn't getting a good deal on its bulk computer purchases.

Bulk purchasing is supposed to be the smart way for the province to save taxpayer dollars.

According to the auditor general, however, the province isn't getting the best bang for its buck.

Audit officials say there are no controls in place to make sure the province is paying the lowest price.

During the course of a multi-year IT contract, the price of a computer falls as new models hit the market.

But officials say the contracts signed with computer providers do not take that into account.

For example, the price of a tablet in the contract is $499. But the provider's own website lists it as $439. 

Officials say they cannot estimate how much the province has overpaid, and it's too late now to recoup the difference.

They recommend stricter controls over contracts to take into account price changes.


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