Beer and wine should be sold by private businesses in Ontario, an independent report recommends, but sources say the province's Liberal government is unlikely to let that happen.

The idea is one of several major recommendations due to be released today by a four-member panel that reviewed Ontario's provincially-run retail booze business.

The Beverage Alcohol System Review, ordered in January by Finance Minister Greg Sorbara, will propose making beer and wine available at big grocery stores, and at large department stores that also sell food, but not necessarily at corner stores.

The door would be open for the province to change its mind later but for now, government insiders say, the Liberals are reticent about any measures that could potentially make it easier for teenagers to get their hands on alcohol.

The review, which was due to be published last spring, was meant to help the government find ways to squeeze more money out of liquor sales without compromising existing controls.

Another issue is how to give Ontario consumers more access to products from the province's wineries.

In any event, opposition critics are anxious to seize on the contents of a report that's several weeks overdue.

"The timing is interesting," says Conservative finance critic Jim Flaherty, who suspects the report's release was delayed until July because "things are quiet" at the legislature during the summer recess.

Much of the buzz surrounding the review was the possibility of a partial spinoff of the province's lucrative liquor agency to private investors.

Sorbara said all options except the outright sale of the Liquor Control Board of Ontario are on the table.

However, despite his assurances, LCBO employees fear privatization plans are in the works because a recent contract offer reduces their job protection.

The 5,400 LCBO employees vote this week on the contract offer which the Ontario Public Service Employees Union has asked them to reject.

If workers vote to strike, liquor stores could be closed by July 28th.

Sorbara has not ruled out spinning off part of the wine and spirits retailer to investors in the form of an income trust, a scheme whereby investors buy rights to future LCBO profits, allowing the government to rake in potentially billions of dollars up front.

Proponents of privatizing the liquor retailer say it would be better run in private hands, but the LCBO disagrees, pointing to its ever-increasing revenues and an intensive store renovation project.

The LCBO, established in 1927, has 3,280 full-time and 3,283 part-time employees. It operates 598 corporate stores across Ontario. In 2003/04, the LCBO's net sales were $3.3 billion, generating a profit to the government of $1.04 billion.