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SOUND OFF: NDP inaction sees hopes of cannabis entrepreneurs go up in smoke

Jul 11, 2019 | 2:19 PM

IT HAS BEEN CLEAR since October 17, 2018, that John Horgan’s NDP government did not have an effective plan in mind for the introduction of legal cannabis. Nine months in, the great green rush is off to a rough start here in B.C. Yearly revenue projections are down a staggering $53 million and Horgan’s handling of the shift to legal cannabis has quickly become a laughing stock across Canada, especially when compared to the progress made by previously prohibition-heavy provinces like Alberta and Manitoba.

Let’s start with the most obvious issue, which is the complete lack of private retail cannabis stores throughout most of B.C. To put the numbers into perspective, Alberta currently has 176 licensed stores province-wide, which easily dwarfs B.C’s pitiful 40 stores as of the middle of July. This is in stark contrast to the expectations laid out by the NDP government.

The black market is thriving, the legal market is sputtering and the NDP are, unsurprisingly, making it very clear that they could care less about the struggles of small business owners. Dozens of private retail cannabis operators are severely disheartened and facing financial hardship. Small business folks around B.C. with legitimate applications are waiting upwards of eight months for provincial approvals. These entrepreneurs are being forced to bleed money for leases and other costs they have incurred in good faith on the understanding set by the NDP that their approvals would be dealt with in an expeditious manner. Many of these small business owners are now facing serious financial hardship as they watch the NDP dither and delay with no apparent rationale for doing so.

John Horgan willfully gave municipalities the option to decide whether to allow legal retail stores in their communities, which means if a local government opts out, there will be no local competition to the black market in that community. One example is Surrey, which has voted to ban legal stores and has, in turn, pushed recreational cannabis consumers to the black market. The entire idea is preposterous, but here we are in John Horgan’s B.C., the joke of the Canadian cannabis industry. The number one objective of legalizing cannabis – we were told – was to eliminate black market sales. There should be great concern that while the NDP sits idly by and refuses to approve permits to legitimate business owners, illegal sales will continue.

Municipalities that allow for legal retail sales are racing to pass regulations that allow for the establishment of a working retail framework. This is a multi-step process that routes back and forth between the province and municipalities several times, costs thousands of dollars and, apparently, takes months to complete. In contrast, government-run cannabis stores are allowed to circumnavigate the issue and strong arm local small business owners for their preferred retail location. There creates a clear competitive advantage for government, as it is not only in charge of issuing licences but also actively competing for those same licences. In some situations, government is even competing for the same storefront as private businesses.

Even John Horgan says government is doing a bad job on this file and has said that he is frustrated with the glacial pace of his government’s approval of licences for prospective cannabis stores. Rhetoric aside, it is he who continues to sit on his hands while dozens of applicants sit waiting for approval from his government.

The province is barely trickling out licences while swinging full might when they want a BC Cannabis Store location, all the while allowing illegal stores to compete in a legal market. Enough with being frustrated. It’s time for John Horgan to fix this mess.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or the Jim Pattison Broadcast Group.