Minister Ceci reacts to city anger over cannabis funding
EDMONTON The province stands by the $11.2 million it will give municipalities over two years to help buffer the costs of cannabis legalization.
Various municipal organizations hoped they would get more, and were dismayed by the news from Finance Minister Joe Ceci Monday. Edmonton Mayor Don Iveson said he was “furious” and accused the province of not taking the concerns of cities seriously.
Ceci said Alberta’s cannabis transition program is similar to programs in Quebec and Ontario — the only two other provinces sharing cash with municipalities.
“For two years, we’re going to be at a net loss with regard to cannabis regulations and sales in this province, so we’re just not able to do more, because frankly the brave new world of cannabis is unknown,” he said Tuesday on his way into cabinet.
“The Government of Alberta is not going to be making money, so sharing monies that I don’t have is a problem.”
Municipalities with populations under 5,000 won’t see anything under the program, which Ceci attributed to the fact the province bears the cost of policing in those small jurisdictions.
“But I recognize there are costs for cities, and this grant is going to assist with some of that,” he said.
He said the government will revisit the municipalities program in two years.
Alberta Gaming, Liquor and Cannabis is in charge of online sales and distributing legal marijuana to retailers in this province.
It has estimated it will lose around $90 million over the next two years in the cannabis market.
Losing money in a legal drug market seems to fly in the face of logic, but AGLC puts it down to a range of factors including $10.5 million in salaries and benefits for the extra staff it needs.
Then there’s supplies and services, warehousing and distribution costs, and data processing fees for the e-commerce system.
The commission says inspectors on shift Wednesday will visit retail locations throughout the day to offer support for new business owners, and make sure they’re complying with legislation and policy.
United Conservative Party caucus spokesperson Christine Myatt said in an email her party doesn’t believe cannabis should be a money-making venture for any level of government, but at the same time the program should ensure that revenue covers costs.
“It is a bit bewildering that the NDP is managing to lose money on this,” she said, adding the party’s main concern is ensuring authorities have what they need to keep roads safe and drugs out of the hands of children.
As for Alberta’s preparations for Wednesday, Ceci said, “We are ready. Alberta is ready.”