B.C.’s first government cannabis store opens in Kamloops, October 2018. The city is getting two more government stores this year. (B.C. government)

B.C. still losing money on legalized marijuana sales

Talks with municipalities continue on revenue sharing

The B.C. government is working with local governments on a formula for sharing revenue from legalized cannabis sales, but so far there is no revenue to share, Finance Minister Carole James says.

B.C.’s revenues from sales are lagging far behind neighbouring Alberta, which has many more licensed stores and about five times the sales as B.C., according to the latest Statistics Canada figures since recreational marijuana was legalized in October 2018.

James and other B.C. cabinet ministers are preparing for meetings this month with the Union of B.C. Municipalities to discuss the progress of cannabis store licensing and revenue sharing.

“One of the first steps is to look at who is responsible for what, because the province has responsibility for some of the pieces, criminal record checks, background checks,” James said Tuesday as she released the latest B.C. financial reports.

“The municipalities have the bylaw and licensing piece. The other important piece here is there isn’t a profit right now to be able to share. Our costs are outweighing the revenue that’s coming in.”

B.C.’s revenues were lower than all other provinces but Prince Edward Island, and the number of stores has lagged behind Alberta. One issue is the size of the entrenched illegal market in B.C., which historically has produced half of Canada’s output.

Alberta now has more than 270 licensed cannabis retailers, while B.C. has issued licences for just over 60. James said legalization last fall coincided with B.C. municipal elections, so their licensing and zoning were delayed.

“Part of it may be B.C.’s long history of an illegal market, and people moving to a legal market from an illegal market they have lived with for a great number of years,” James said. “That’s a shift that may take some time.”

RELATED: Proposed pot shop too close to elementary school

RELATED: B.C.’s Tilray buys four Alberta cannabis stores

B.C. Public Safety Minister Mike Farnworth has been traveling the province to meet with “craft cannabis” producers who want to be legal, but police need assurances that they are not linked to organized crime groups that have long operated in B.C.

The province’s new community safety unit has begun moving in to shut down unlicensed cannabis dispensaries, which proliferated in B.C. over the years as quasi-medical operations.

James said the next phase of federal legalization, the approval of cannabis edibles, should change the business picture in B.C.

“There may be some shifts as you look to edibles this coming spring,” James said. “That’s the next step in legalization but we’re continuing our work on that piece with UBCM.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Vanderhoof post office re-opening Tuesday

Vanderhoof’s post office was closed due to air pollution and flooding, as per a notice on the building

Coastal GasLink stresses pipeline ‘on a schedule’ as B.C. appoints liaison for Wet’suwet’en

670-kilometre pipeline is schedule to be completed by end of 2023

Q & A with Vanderhoof Mayor Gerry Thiessen

Thiessen speaks about Horgan’s visit and issues raised by the municipality

Vanderhoof Children’s Theatre back with Frozen Jr.

The theatre group is performing eight public shows starting Jan. 29

Vanderhoof business owners appealing to BC Assessment on substantial property tax increases

Several business owners in Vanderhoof are making an appeal to BC Assessment,… Continue reading

VIDEO: As 106 reported dead from the coronavirus outbreak, countries look to evacuate citizens

Canada is warning its residents to not go to Hubei province at all

Majority of Canadian boards had no female members in 2016 and 2017: StatCan

Statistics Canada says 18.1 per cent of director seats were held by women in 2017

First-place Canucks beat Blues 3-1 for ninth straight home win

Miller nets pair as Vancouver defeats Cup champs

Swapping grape varieties can help winemakers adapt to climate change: UBC study

Report says 56% of wine-grape-growing regions would be lost if global climate warms by 2 C

Alberta premier wants feds to approve Teck mine for benefit of First Nations

Kenney: ‘Surely [reconciliation] means saying yes to economic development for First Nations people’

Police search for man who went missing from Vernon hotel

Jay Rosenberger, 38, was last seen Friday

NDP suggests easing secondary housing rules for B.C. farmland

Lana Popham proposes guest homes not just for relatives

After four sexual assaults in the same B.C. park, RCMP ask women not to walk alone

Four sexual assaults took place in Glen Park over two months

BC Place lights up in purple and yellow to honour Kobe Bryant

Kobe Bryant, his 13-year-old daughter and seven others were killed in a helicopter crash

Most Read