New Brunswick wants to privatize cannabis sales

The province of New Brunswick is seeking to withdraw from the cannabis retail business and transfer this activity to the private sector. It has issued a call for proposals for the purchase of its 20 retail stores, which until now have been owned by Cannabis NB, a subsidiary of the New Brunswick Liquor Corporation.

A single private operator will be selected through the bidding process. Interested parties have until January 10, 2020 to submit their application, with the final decision to be made in the spring of 2020, followed by a transition later that year.

The government is looking for individuals with «proven experience in the sale of recreational cannabis, the financial capacity to develop and sustain operations, and a viable plan to combat the black market and provide high-quality service to consumers through competitive pricing and a diverse product lineup.».

«This decision is part of our efforts to revitalize the private sector, put our finances in order, and maximize the benefits for taxpayers and the government,» said Ernie Steeves, Minister of Finance and Chair of the Treasury Board.

«After a careful and thorough review of the current management model for the sale of recreational cannabis and an analysis of alternative options, we concluded that the best approach for taxpayers and the Government of New Brunswick was to turn to the private sector,» he continued.

«We believe the government’s role should be to regulate and protect the health and well-being of our residents,» Steeves said. «That is why our government has identified the single-private-operator model as the best approach to balancing the goals of public protection and the province’s financial interests.»

The province has, in fact, accused some significant losses during its first fiscal year, and had already announced that it was considering privatizing the distribution component of its regulatory model.