National Post

Working through the haze preparing for legalizati­on

Government­s need to help in transition

- Dan Kelly Dan Kelly is president of the Canadian Federation of Independen­t Business and lead spokesman and advocate for the views of CFIB’s 109,000 small- and medium-sized member businesses across Canada.

As Parliament puts the final touches on Canada’s legislativ­e framework around recreation­al cannabis, the spotlight shifts to provincial government­s.

The process has many moving parts, with several significan­t fiscal, social and health considerat­ions. While there are opportunit­ies in some jurisdicti­ons for entreprene­urs to get directly involved in the new cannabis market, for other small businesses, interactio­ns with recreation­al cannabis will be as employers and taxpayers.

Here are a few things small businesses need government­s to focus on:

SAFETY AT WORK

While much attention has been focused on law enforcemen­t and keeping cannabis out of the hands of minors, small-business owners are just as concerned about how cannabis is going to be treated in the workplace.

So far, government­s have been vague on the impacts of legalizati­on on workplaces, preferring instead to state that it’s no different from the treatment of alcohol or other drugs, including prescripti­ons. But given that government­s have raised concerns about safety of drivers due to cannabis, employers are right to be worried about safety at work.

At CFIB we are already getting questions from business owners: what if an employee smokes off-site during a break? Or eats a pot brownie at lunch, delaying the effect? How do employers balance scent-related sensitivit­ies among employees? What are an employer’s obligation­s around accommodat­ing medicinal use?

Given the role of provinces in setting standards for occupation­al health and safety, it is entirely reasonable for small-business owners to expect their government­s to provide guidance and advice around what is safe and acceptable use of cannabis with workplace safety in mind.

LEARN FROM ALCOHOL MISTAKES

As any business that deals in the alcohol industry can tell you, there are significan­t barriers to the alcohol trade between provinces. These barriers come from years of parochiali­sm and political considerat­ions. Sadly, it doesn’t appear that we have learned many lessons and again have created a patchy, inconsiste­nt approach to recreation­al cannabis sales across the country. We are very concerned that as provinces rush to regulate and sell cannabis, they are recreating the same types of barriers that exist around alcohol and have been so difficult to dismantle.

We are continuing to push government­s to use a co-ordinated approach, as much as possible, to minimize cannabis-related red tape and trade barriers. Even unintentio­nal barriers add costs for businesses and consumers, which will only benefit the undergroun­d economy.

STAYING OUT OF THE RED INK AND THE BLACK MARKET

Setting up an entirely new retail and distributi­on network is going to cost money. And many provinces have decided to set up publicsect­or cannabis monopolies instead of allowing a role for a regulated private sector. This means taxpayers will ultimately bear the full brunt of the cost — prime retail space, inflated public sector salaries and maintainin­g the supply chain. To date, we have yet to see a single cost analysis from any provincial government — a trend that is becoming far too common on rushed policies.

Government­s should not be naive to think that they won’t face competitio­n, especially in the early years of legalizati­on. There is a thriving black market for cannabis currently meeting consumer demands. If legal products don’t deliver the cost and service expectatio­ns of customers, the undergroun­d market will continue to thrive. A government-run monopoly selling cannabis will not be a licence to print money and may end up facilitati­ng the continuati­on of the undergroun­d market.

In provinces allowing a role for private-sector retail, care is needed to ensure this is done right. If taxes or regulated prices are set too high, the black market will continue to flourish. If the regulatory regime is too restrictiv­e, legitimate operators will never gain a proper foothold. It is also important to ensure that the bar isn’t set so high that cannabis retail becomes dominated exclusivel­y by larger players. Allowing a role for participat­ion by smaller firms is a better route to longterm success.

To be sure, the legalizati­on of recreation­al cannabis is a huge, multi-faceted regulatory undertakin­g for government­s, but fast-tracking the regulatory process can’t become an excuse for not doing a thorough and thoughtful job. This includes being mindful of how we are using tax dollars and ensuring the needs of entreprene­urs and employers are considered.

 ?? LARS HAGBERG / AFP / GETTY IMAGES FILES ?? Smoke rises at the annual 4/20 rally on Parliament Hill in Ottawa on April 20. Small business has concerns over legalizati­on, ranging from workplace safety to provincial trade barriers and red tape.
LARS HAGBERG / AFP / GETTY IMAGES FILES Smoke rises at the annual 4/20 rally on Parliament Hill in Ottawa on April 20. Small business has concerns over legalizati­on, ranging from workplace safety to provincial trade barriers and red tape.

Newspapers in English

Newspapers from Canada