Ford appears poised to get it right on pot distribution

Credible media reports say the Ford government will next week announce a new plan for distribution of legal marijuana in Ontario. Gone will be the government monopoly with the LCBO overseeing Ontario Cannabis Store outlets. Instead, private-sector distributors will be allowed in the market as well.

This has the potential to be a good move, if the government gets the details right.

Assuming the government goes ahead, it will come to the rescue of a retail plan, left behind by the departing Liberals, that was not — pardon the expression — fully baked. It called for a modest number of brick-andmortar OCS stores to open in the early days of legalization. Hamilton would get only one. For that matter, even Toronto was scheduled to get just one of the first four stores.

The Liberal plan would have seen 150 stores by 2020, but most experts agree that’s not nearly enough to meet demand, even though current initial forecasts call for less appetite than originally anticipated.

That’s a problem, not because there’s a crushing rush to see legal cannabis available in every corner of the province, but rather because insufficient supply and/or bottlenecks at the retail level will just drive buyers to the black market. And the main reason for legalizing in the first place is to take the business away from criminals and legitimize it with quality controls, proper labelling and supervision of sales to keep pot out of the hands, lungs and brains of underage consumers.

Another problem with the original distribution plan is that it would have bolstered and fed the already huge bureaucracy that is the LCBO. If anything, we need less government monopoly, not more.

If the speculation is accurate, Ontario can expect a hybrid system, something like what is planned for British Columbia, with some standalone government stores and other outlets that have to apply for licences and meet all the requisite conditions.

The question now is can the government get this right with only 76 days left until legalization on Oct. 17. There are dozens of outstanding questions, but here are some of the most significant.

If the semiprivate model is like other jurisdictions, it will be the provincial liquor authority that grants licences. Is the LCBO set to receive the wave of applications that will come once the announcement is made? What sorts of conditions will licence applicants have to meet? And crucially, how many licences will be granted in a given municipality? Hamilton has dozens upon dozens of dispensaries that currently operate illegally. Will all of them apply? How many outlets does a city of this size really need?

Other questions concern oversight. Obviously government stores operate to a high regulatory standard. Private stores will require policing to ensure those standards are maintained over time. That means human resources will be needed to do requisite inspections. How many inspectors will the government hire? Will they be responsible to the LCBO/OCS? What does the inspection regime look like? How will municipal licensing integrate with provincial regulations?

So many questions, so little time. And Ford needs to get this right.

How many licences will be granted in a given municipality? Hamilton has dozens upon dozens of dispensaries that currently operate illegally. Will all of them apply? How many outlets does a city of this size really need?