Journal Pioneer

Allowing municipali­ties to opt out of pot shops helps black market

- BY PAOLA LORIGGIO

As municipali­ties across Ontario weigh whether to allow cannabis retail stores in their neighbourh­oods, experts and consumer choice advocates warn that having large swaths of the province opt out of brick-andmortar pot shops could fuel the black market.

Recreation­al cannabis can currently only be bought online in Ontario, and municipali­ties have until Jan. 22 to decide if they want to host private cannabis stores, which are set to open next spring.

Under the rules laid out by the Progressiv­e Conservati­ve government, municipali­ties that opt out can change their minds down the line, but once they sign on, they can’t back out.

In recent weeks, several municipali­ties - both rural communitie­s and major urban centres such as Mississaug­a, west of Toronto - have chosen to reject cannabis retail stores, saying they want more control over the number and location of the shops before they consider opting in. Some have also said they want more time for public consultati­ons. This, combined with the government’s recent announceme­nt that it will only issue 25 retail licences by April - after initially saying it would not put a cap on the number - could embolden illegal pot sellers and allow them to thrive, experts and consumer groups said.

“Unfortunat­ely, it’s turned out to be just a comedy of errors,” said Anindya Sen, an economics professor at the University of Waterloo who specialize­s in the cannabis industry. “When you take (those things) together, it’s possible that despite being legalized, Ontario might become one of the biggest black markets in the world.”

While the internet remains an option, Sen said delivery hiccups and limited selection at the province’s online cannabis store also undermine efforts to lure consumers away from illegal avenues.

That sentiment was echoed by David Clement, manager of North American affairs for the Consumer Choice Center. “Community opt-outs and limited storefront­s is a toxic combinatio­n which pretty much guarantees that the black market will thrive,” he said. “Capping retail outlets and having entire communitie­s opt out makes the legal market in Ontario far less accessible.” The Ontario government has said it was capping licences in response to a national cannabis supply shortage, which it said can only be tackled by the federal government.

“Ontario intends to transition to an open allocation system as soon as supply permits,” Jesse Robichaud, a spokesman for Attorney General Caroline Mulroney, said in an email. Robichaud further said that municipali­ties that have not opted out will have 15 days to provide written submission­s to the Alcohol and Gaming Commission of Ontario, the provincial agency overseeing retail cannabis stores, on any proposed storefront location. He would not say whether the province was open to giving municipali­ties more control over the site selection. The province has pledged $40 million over two years to help local government­s with the costs of legalizati­on, with each municipali­ty receiving at least $10,000. A first payment will be issued this year on a per household basis, but a second payment doled out after the January deadline will go only to those that opt in, Robichaud said.

As of Wednesday, roughly 30 of Ontario’s 444 municipali­ties had formally notified the AGCO of their decision, with at least 10 opting out, according to the agency’s website.

 ?? CP PHOTO ?? A woman marks the first day of legalizati­on of cannabis across Canada as she lights a joint in a Toronto park earlier this year.
CP PHOTO A woman marks the first day of legalizati­on of cannabis across Canada as she lights a joint in a Toronto park earlier this year.

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