Canada: No privatization of cannabis in New Brunswick

Cannabis NB will remain a public corporation. This is the decision of the government of New Brunswick, a province in eastern Canada where one in three residents speaks French as their first language. Local officials had been mulling over the possibility of privatizing this company—which holds a monopoly on the sale and distribution of cannabis—for the past year. The Minister of Finance had even taken steps to sell Cannabis NB. In the end, that won't happen.

«I think we made the right decision today.», according to the local premier. For Blaine Higgs, a member of the Progressive Conservative Party (center-right), the fiscal argument is the deciding factor: Cannabis NB is expected to post 10 million Canadian dollars in profits in 2021. A far cry from the record losses of 2019, shortly after cannabis was legalized in Canada.

Naturally, this decision is a godsend for the opposition. «Thank goodness the prime minister has come to his senses. He’s realized how lucky we are to have Cannabis NB as a public company.», says Representative Roger Melanson, a member of the Liberal Party (left). But some members of the majority regret that their views were not heard. «We will continue to push for a model that is truly private.», promises Kris Austin, the leader of the New Brunswick People’s Alliance (conservative-populist).

A wasted year?

The decision not to privatize will throw the local government into turmoil. In fact, Finance Minister Ernie Steeves had publicly come out in favor of privatization during a live television broadcast. Now, he has to eat his words and accept that Cannabis NB will remain publicly owned. «We are confident that New Brunswick taxpayers and consumers can be well served by ongoing improvements to the current model.», ", the minister cautiously states in the press release.

The local government had compiled a list of eight companies interested in a takeover. Among them are the giant of the cannabusiness Canopy Growth, or the Loblaw supermarket chain. «The private sector was quick to smell a good deal, notes French-speaking columnist François Gravel. Just as the negotiations were reaching a critical stage, Cannabis NB was a cash cow. »

But for those most directly affected, all this debate over whether it’s a real or fake privatization is a waste of time. « Think of all those companies that submitted proposals to the government. All that money, all that time they wasted on something that’s never going to happen!« , "Brad Poulos, a Canadian economics professor quoted by CTV News, protests,".