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.

Just Posted

Tour de Rock ready to start making its way down Vancouver Island

Tour de Rock takes place Sept. 21 to Oct. 4

Nanaimo high school students cut class to attend climate action rally

Extinction Rebellion Nanaimo rally raises awareness, demands action against climate change

Public meeting will explore ideas to battle addiction and crime in Nanaimo

Organizers call for treatment centres, accountability for crimes, citizens’ task force

VIU students empowered to ‘shift the vote’ this election

VIU Students’ Union, B.C. Federation of Students launch ‘Our Time is Now’ campaign

Nanaimo-Ladysmith candidates ‘disappointed’ with prime minister over blackface

Situation a ‘nightmare’ for Trudeau and the Liberals, says VIU professor

PHOTOS: Young protesters in B.C. and beyond demand climate change action

Many demonstaers were kids and teens who skipped school to take part

Beefs & Bouquets, Sept. 19

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail bulletinboard@nanaimobulletin.com

Nanaimo athletes earn gold, silver, bronze at 55-Plus B.C. Games

Huge contingent of local participants competed in largest-ever 55-Plus B.C. Games in Kelowna

Nanaimo beekeepers take down nest of giant hornets

One nest eradicated at Robins Park, but there are still Asian giant hornets around

Oak Bay father’s testimony at murder trial like plot of ‘bad low-budget movie:’ Crown

Crown alleged Andrew Berry’s ‘entire story of Christmas Day is a lie’

B.C. truck drivers to face higher fines for not using winter tire chains

As of Oct. 1, not using chains on the highway when required could net you a $598 ticket

Singh campaigns in Toronto, May in Winnipeg, as Liberal and Tory leaders pause

All parties expected to be back on the campaign trail Sunday

Possible Canadian cases of vaping illnesses being investigated: health officer

‘I think that will be really important to address the overall trend of youth vaping’

Area 51 events mostly peaceful; thousands in Nevada desert

Three more people were arrested Friday on the remote once-secret military base

Most Read