Premiers tell Trudeau about doubts over pot, tax plans
Prime Minister Justin Trudeau is getting an earful from premiers about the federal government’s controversial small business tax reform plan and the tight timeline for legalizing cannabis by next July.
On their way into a daylong first ministers meeting Tuesday, premiers said they intend to air their concerns about those issues.
Alberta Premier Rachel Notley said she wants more clarity from the federal government on the burden the provinces will have to bear to regulate the legalization of marijuana for recreational use.
“We are learning that there is more and more costs that are going to be incurred by provincial governments and so we need to make sure that the issue of cost neutrality to the governments that are actually doing the heavy lifting is preserved,” she said.
B.C. Premier John Horgan said since there are already a number of marijuana dispensaries in his province, he thinks the retail infrastructure is already in place for the sale of the drug.
“British Columbia has, I would suggest, a mature market when it comes to cannabis and the challenge for us is going to be trying to contain the enthusiasm within the community,” Horgan said.
He said what he hopes to impress upon the federal government is the importance of getting the price of pot right, so that it does not allow the black market to thrive.
He also said he is confident the existing timeline is long enough, but that he might be proven wrong as he gains more experience in government and discovers the true pace at which things can develop.
Prince Edward Island Premier Wade MacLauchlan noted that pot legalization involves public health, education and enforcement issues.
“We all have to realize this is a complex issue. It’s not just a matter of passing a law.”
On the contentious question of proposed Liberal tax reforms, MacLauchlan said he’s never seen a business tax issue attract so much “engagement.”
The proposals have been slammed by large and small business groups, doctors, accountants, lawyers, farmers, shop owners and even some of Trudeau’s Liberal backbenchers. MacLauchlan said his province has particular concerns that the proposed changes will impede the ability of farmers and fishers to pass on their businesses to their children. He said he’ll ask for “proper consideration” of their concerns, including prolonging consultations, which ended Monday.
Horgan also hinted that more time is needed for consultations.
“We’ve certainly been hearing from people in British Columbia,” he said.
“They’re concerned with the lack of consultation, kind of out of the blue on a major piece of tax reform.”
Both Horgan and Notley said the plan must strike a balance between making sure the wealthy pay their fair share and avoiding undue harm to small businesses. Notley said she wants to ensure the government works to protect such businesses from “unintended consequences that would detract from the work that they do, particularly in Alberta as we are emerging from a recession.”
“We know that the work of small businesses is fundamental to that success.”
Federal Finance Minister Bill Morneau is to brief the premiers on his proposed changes, which he maintains are aimed at ensuring the wealthiest Canadians can’t use incorporation of small businesses to avoid paying their fair share of taxes.