Ontario gives free rein to cannabis entrepreneurs

In Ontario, at three months Since the launch of the legal cannabis market, distribution issues have yet to be resolved. While the previous premier had opted for a public distribution service, Doug Ford, the new premier, recently raised the possibility of leaving the market to private entrepreneurs through a licensing system.

Two parties, two policies

The previous Liberal government had planned a system of public stores, with about 40 set to open this year and 150 by 2020. The Ontario Cannabis Stores were required to employ workers from the Ontario Public Service Employees’ Union who had been specially trained for the job. Any private initiative was therefore rejected, to the detriment of existing clinics and stores.

In contrast, Doug Ford of the Progressive Conservative Party raised the possibility of establishing a private distribution system during his campaign: «I’m on the side of the private sector; I don’t think the government should stick its nose into everything.» In June, he was elected premier of Ontario, and the Conservatives took control of the province, thereby opening the debate over their predecessors’ system.

The Triumph of the Private Sector

The previous system was heavily criticized for its potential cost and for its disregard for existing structures. The logo alone cost taxpayers $650,000 Canadians, and the entire project would likely have cost millions, with the goal being to create a distribution system ex-nihilo.

After a long period of silence and lack of clarity from policymakers, it appears that the government’s monopoly on cannabis distribution has been abandoned. Jake Lloyd, a lawyer specializing in cannabis law, stated: «I know from a reliable source that private stores will be the future of cannabis sales in Ontario. We’ve won.».

Although the distribution system seems to be a done deal for many, the government is set to make it official with an announcement on Tuesday, July 31.