Businesses await NDP plan for legalized pot
CALGARY Alberta companies are eagerly waiting to see whether they can do business under the provincial government’s plan for legal marijuana.
On Wednesday, Justice Minister Kathleen Ganley will unveil the NDP government’s policy framework for cannabis after the Trudeau government legalizes recreational marijuana on July 1, 2018.
Among the areas expected to be addressed by the government are the legal age for consumption, pricing and how cannabis will be distributed and sold in the province. That last point is key for a number of businesses in the province.
Jeff Mooij, president and chief executive of the 420 Clinic medical cannabis resource centre in Calgary, which is looking to expand into recreational marijuana, said he expects Alberta will leave legal marijuana retail to the private sector and not follow Ontario’s path in setting up government-run stores.
“To provide the safety and security that everybody’s looking for and also to create jobs, which it will, the private retail and distribution model is probably the best model for this,” said Mooij, whose company runs clinics in Calgary and Lethbridge.
Ontario was the first province to reveal its plans for legal marijuana, with the government announcing plans for the Liquor Control Board of Ontario — the Crown corporation that operates the province’s liquor stores — to set up a network of 150 stand-alone pot retail shops.
Mooij noted that without government-run liquor stores in Alberta, there is no existing infrastructure for public sector retail in the province, though he expects the Alberta Gaming and Liquor Commission to play a significant role in distribution. He said Ontario is also not creating enough stores to meet demand, which will fuel the black market.
The Alberta Liquor Store Association, meanwhile, has called for the province to use the province’s 1,400 existing private liquor stores to sell legal pot. While Ottawa has not ruled that out, the federal task force that studied the issue recommended against having a shared location for both marijuana and alcohol sales.
Darren Bondar, chief executive of Inner Spirit — a Calgary-based company that wants to set up franchised recreational marijuana dispensaries across Canada — believes his company could have 100 stores in the province. He is hopeful provincial rules will call for stores that specialize in cannabis products.
“There will be competition. I think, like anything, it’s best to let the free market decide who survives and who thrives and who doesn’t fit the bill,” said Bondar, who is also the founder of the Watch It chain of watch and sunglasses stores.
The NDP government has been tight-lipped about its intentions around legal marijuana and has promised further public consultations after it releases its plan.