A Welcome Veto

Gov. George Deukmejian, faithful to his commitment to the marketplace, has vetoed legislation that would have used the power of the state to establish a virtual monopoly for importers and distributors of quality wines, forcing consumers to pay millions of dollars in higher prices. His veto is welcome.

It is welcome as a reaffirmation of the importance of competition and also as a signal for lawmakers to seize the initiative and address other injustices in state controls of particular products that work to the disadvantage of consumers and for the profits of special interests.

There are two immediate issues. Legislation proffering monopolies in beer distribution similar to the vetoed wine bill is awaiting action in the Legislature. It needs a quick and quiet burial. More important, the Legislature needs to reassure voters that it has received the governor’s message. The best way to do that would be to wipe from the books the monopolies handed liquor distributors in earlier legislation, another flagrant case in which senators and members of the Assembly put campaign contributions and special interests ahead of their concern for consumers.

Wine, beer and liquor require appropriate controls and are legitimate targets of special taxation, all functions of the state. But the state has no business in interfering in fair competition in the marketplace for any merchandise.