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

B.C. VIEWS: Will the NDP lose money selling marijuana?

Government monopoly sounds great, if you work there

Licensed private marijuana stores are finally starting to flower in B.C., with StarBud launching in the Okanagan and Clarity Cannabis aiming for a September opening in Prince Rupert, among others.

Meanwhile, the (cough) informal marijuana market seems to be rolling along as B.C. wanders toward the first anniversary of cannabis legalization. Here in Victoria, retail stores started opening up years ago, usually with some token nod to “medical” customers, and our famously inept city council started issuing business licences well in advance of federal legalization.

Why? Well, Vancouver was doing it, and in both of these Left Coast social laboratories, federal laws may be viewed more as suggestions. (For example, just declare yourself a “sanctuary city” and instruct your police not to inquire into anyone’s citizenship status. Poof, no more Canadian immigration law.)

In the weed business, illegal operators seem to be doing better than federal and provincial wholesale monopolies. In some cities, consumers have no ready way to tell if a pot store is provincially approved, or has even bothered with a business licence.

Government competition has caused the black market to sharpen its pencils. Statistics Canada estimates that as legal weed prices rise above $10 a gram, illegal producers are cutting consumer costs down towards $5.

RELATED: Langley residents protest huge pot greenhouse smell

RELATED: RCMP seize guns, cash, marijuana headed for Europe

The B.C. Liquor Distribution Branch is doing a great job on its slick-looking retail chain – in Kamloops, anyway. The home of the first B.C. Cannabis Store is about to get two more, and people are lining up to apply for the intensive training offered for unionized “budtenders.”

Anticipating the price problem, the LDB was restrained to a mere 15 per cent wholesale markup. Its monopoly on federally-licensed suppliers is an extension of its liquor wholesale monopoly, which marks up a bottle of hard liquor by 124 per cent, whether it’s sold in a public or private retail store. Then you pay taxes on top of that.

Local politicians are preparing for the annual Union of B.C. Municipalities convention in September, where the discussion about their cut of B.C. revenues will no doubt continue. (Another topic is the local share of fine revenue from the “not photo radar” cameras that will soon be issuing speeding tickets by mail.)

The LDB also has the online cannabis sales monopoly, where you can use your credit card to order products with names like Kinky Kush that come in amazingly over-packaged Canada Post secure deliveries. A few, er, kinks still need to be straightened out in this government workers’ paradise, such as popular strains running out and others arriving mouldy from sitting too long in a warehouse.

Growers and grey-market dispensary operators warned early on that Prime Minister Justin Trudeau’s vision of legalization would lead to shortages. One buzz-killing result of this is the accusation that a publicly traded grower in Ontario concealed the true size of its crop from Health Canada inspectors. Perhaps their chosen brand, CannTrust, wasn’t the best one.

I hope you don’t spend too much time on Twitter, but if you do, check the hashtag #4plantscup. There you will find experts competing to maximize the yield from the four cannabis plants individuals are now allowed to grow at home for personal use.

This is perhaps the biggest long-term threat to the provincial-federal monopoly. As long as home grows are kept discreetly out of sight and don’t obviously exceed size and commercial restrictions, police will devote their time to more pressing concerns.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press Media. Email: tfletcher@blackpress.ca


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

PHOTOS: Shinedown and Papa Roach light up Penticton’s SOEC

Asking Alexandria and Savage After Midnight opened the show on Oct. 16

How local candidates are using Facebook to advertise directly to you

Liberal campaign is the biggest spender on Facebook ads in South Okanangan–West Kootenay

Grab your Lederhosen, Penticton Oktoberfest is tomorrow!

The 10th annual event is hosted at the Penticton Lakeside Resort and kicks off Penticton Beer Week

South Okanagan’s first swim meet of the season

The Penticton KISU Swim Club is hosting its first meet of the season this weekend

Charles wows them at iconic South Okanagan venue

Blues musician Michael Charles played to a sold-out crowd at the Dream Café Saturday

VIDEO: First all-female spacewalk team makes history

NASA astronauts Christina Koch and Jessica Meir did work on International Space Station’s power grid

Zantac, the over-the-counter heartburn drug, pulled in Canada, U.S.

Health Canada also investigates possible carcinogen in some ranitidine drugs

Natalie MacMaster makes Okanagan one of two B.C. stops

Queen of the Fiddle in town Oct. 24

Shooters compete in Summerland

Seven youth participants take aim

B.C. public safety minister says cannabis edibles not in stores til January

Mike Farnworth says he wants regional issues considered when it comes to licensing

Greta Thunberg calls for climate action in Alberta, but doesn’t talk oilsands

Swedish teen was met with some oil and gas industry supporters who came in a truck convoy

RDOS cannabis production bylaw goes to public hearing

Hearing on micro cannabis production facilities will be held Nov. 21

Scheer denies spreading ‘misinformation’ in predicting unannounced Liberal taxes

Conservative leader had claimed that a potential NDP-Liberal coalition could lead to a hike in GST

Council asks to limit cruise ship visits to Victoria harbour

Mayor says motion is not meant to curtail current visits or limit local cruise industry expansion

Most Read