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

Queen Charlotte highlights the year that was in 2018 Annual Report

A number of works projects were completed, as well as improvements at the youth centre

Boon Docs, life as a rural doctor tickles the funny bone

Haida Gwaii’s Caroline Shooner draws observations from the medical field

President and CEO leaving Coast Mountain College

Burt will say goodbye to CMNT come September

Marathon day on Haida Gwaii

Totem to Totem race looks to set another participation record

World’s largest animal spotted off coast of Haida Gwaii

Fisheries and Oceans Canada spotted the animal during their Science At-Sea mission

VIDEO: Young couple found dead in northern B.C. had been shot, police say

Chynna Noelle Deese of the U.S. and Lucas Robertson Fowler of Australia were found along Highway 97

Latest plan is to fly trapped fish by helicopter over Big Bar slide

Multi-pronged plan set in motion to freesalmon blocked by landslide in the Fraser River

Family of missing B.C. senior with dementia frustrated with situation, heartened by community support

Nine days since Grace was last seen the question remains: ‘How can an 86-year-old just disappear?’

Unsealed record suggests U.S. man convicted of murdering Vancouver Island couple left DNA on zip tie in 1987

William Talbott is set to be sentenced Wednesday in the murders of Jay Cook and Tanya Van Cuylenborg

Surrey court clerk files human rights complaint related to concussion

Deborah A. Ryane claims her employer discriminated against her on basis of mental disability

Coast Tsimshian sign historic stewardship agreement

Lax Kw’alaams and Metlakatla plan to work as one to preserve traditional lands

Food fight: Liberals, Tories trade shots as pre-campaign battles intensify

Health Canada released an overhauled document that did away with traditional food groups and portion sizes

Okanagan Air Cadet challenges gender-exclusive haircut policy

Haircut regulation inspires challenge around gender identity

VIDEO: Bystander training gains traction as tool to prevent sexual harassment, violence

Julia Gartley was sexually assaulted after an event, and no one stepped in to help

Most Read