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B.C. VIEWS: Will the NDP lose money selling marijuana?

Government monopoly sounds great, if you work there
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B.C.害羞草研究所檚 first government cannabis store opens in Kamloops, October 2018. The city is getting two more government stores this year. (Black Press files)

Licensed private marijuana stores are finally starting to flower in B.C., with StarBud launching in the Okanagan and Clarity Cannabis aiming for a September opening in Prince Rupert, among others.

Meanwhile, the (cough) informal marijuana market seems to be rolling along as B.C. wanders toward the first anniversary of cannabis legalization. Here in Victoria, retail stores started opening up years ago, usually with some token nod to 害羞草研究所渕edical害羞草研究所 customers, and our famously inept city council started issuing business licences well in advance of federal legalization.

Why? Well, Vancouver was doing it, and in both of these Left Coast social laboratories, federal laws may be viewed more as suggestions. (For example, just declare yourself a 害羞草研究所渟anctuary city害羞草研究所 and instruct your police not to inquire into anyone害羞草研究所檚 citizenship status. Poof, no more Canadian immigration law.)

In the weed business, illegal operators seem to be doing better than federal and provincial wholesale monopolies. In some cities, consumers have no ready way to tell if a pot store is provincially approved, or has even bothered with a business licence.

Government competition has caused the black market to sharpen its pencils. Statistics Canada estimates that as legal weed prices rise above $10 a gram, illegal producers are cutting consumer costs down towards $5.

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The B.C. Liquor Distribution Branch is doing a great job on its slick-looking retail chain 害羞草研究所 in Kamloops, anyway. The home of the first B.C. Cannabis Store is about to get two more, and people are lining up to apply for the intensive training offered for unionized 害羞草研究所渂udtenders.害羞草研究所

Anticipating the price problem, the LDB was restrained to a mere 15 per cent wholesale markup. Its monopoly on federally-licensed suppliers is an extension of its liquor wholesale monopoly, which marks up a bottle of hard liquor by 124 per cent, whether it害羞草研究所檚 sold in a public or private retail store. Then you pay taxes on top of that.

Local politicians are preparing for the annual Union of B.C. Municipalities convention in September, where the discussion about their cut of B.C. revenues will no doubt continue. (Another topic is the local share of fine revenue from the 害羞草研究所渘ot photo radar害羞草研究所 cameras that will soon be issuing speeding tickets by mail.)

The LDB also has the online cannabis sales monopoly, where you can use your credit card to order products with names like Kinky Kush that come in amazingly over-packaged Canada Post secure deliveries. A few, er, kinks still need to be straightened out in this government workers害羞草研究所 paradise, such as popular strains running out and others arriving mouldy from sitting too long in a warehouse.

Growers and grey-market dispensary operators that Prime Minister Justin Trudeau害羞草研究所檚 vision of legalization would lead to shortages. One buzz-killing result of this is the accusation that a publicly traded grower in Ontario concealed the true size of its crop from Health Canada inspectors. Perhaps their chosen brand, CannTrust, wasn害羞草研究所檛 the best one.

I hope you don害羞草研究所檛 spend too much time on Twitter, but if you do, check the hashtag #4plantscup. There you will find experts competing to maximize the yield from the four cannabis plants individuals are now allowed to grow at home for personal use.

This is perhaps the biggest long-term threat to the provincial-federal monopoly. As long as home grows are kept discreetly out of sight and don害羞草研究所檛 obviously exceed size and commercial restrictions, police will devote their time to more pressing concerns.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press Media. Email: tfletcher@blackpress.ca



tfletcher@blackpress.ca

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