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.

BC legislature

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

Just Posted

Two new recycling trucks on the way for White Rock

Council approves higher cost to reduce operations yard problems

Politicians want Surrey’s Civic Distinction Awards done ‘virtually,’ not postponed

City staff recommended they be put off to the fall of 2021 because of the pandemic

B.C. announces regional cancer treatment centre to be included in new Surrey hospital

Services expected to include treatment, supportive care, research, education, innovative technologies

Illegal suite a concern for Cloverdale man

Despite a City-issued stop-work order, construction continues

Fraser Health warns of possible COVID-19 exposure at Surrey hookah lounge

Health authority says exposure dates are July 31 to Aug. 2

B.C. would not send students back to school if there was ‘overwhelming risk’: Horgan

Plan has left many parents across the province worried about their children’s safety

2016 kidnapping, extortion by Hells Angels member related to Hope cannabis grow ops

Various Hope area grow ops connected to distribution network in Edmonton, court documents detail

Masks to be mandatory on BC Transit, TransLink starting Aug. 24

Both BC Transit and TransLink made the announcement in separate press releases on Thursday

Penticton homes evacuated due to wildfire northwest of city

Emergency vehicles are at the scene near Sage Mesa, evacuation centre set up in Penticton

Building at Mission summer camp destroyed in fire, RCMP say arson suspected

Khalsa Centre summer camp was closed due to COVID-19, 17 staff were present on site

Drinking in two city parks to be allowed by Chilliwack council

Crossing and Vedder Park both designated for pilot project that encourages responsible drinking

British Columbians worried as end of COVID-19 rental supplement looms

Single mom struggles as supplement was her saving grace

Six-foot blood python missing in downtown Chilliwack

Owner is worried and reports the snake ‘more loving and gentle than a lil’ kitten’

Arson suspected in several wildfires lit near Kootenay town

RCMP making progress in arson investigation of Marsh Creek fires

Most Read

l -->