Cannabis licensees will prevail over dealers: Ottawa

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This article was published 14/10/2018 (2167 days ago), so information in it may no longer be current.

OTTAWA — Though the Manitoba government is expressing concern legalizing recreational cannabis won’t immediately undercut the black market, Ottawa believes licensed producers will ultimately prevail.

Bill Blair, the Liberals’ point man on pot, who became minister of organized-crime reduction this summer, suggested Wednesday’s legalization will draw Canadians away from their drug dealers.

“I believe that the overwhelming majority of Canadians will make the more socially responsible, healthier, safe choice,” Blair said Monday, in response to concerns raised by Manitoba.

Blaine Pedersen, the provincial minister of growth, enterprise and trade, told the Free Press he’s not sure Manitobans will make that switch, and certainly not right away.

“Our goal is to eventually eliminate the black market, but we have no illusions about Oct. 18 there will be no black market — that’s just not reasonable to even think that,” Pedersen said.

“What we’re offering is, through legalization… a safe alternative for those who wish to consume it.”

The minister added he was unsure if legal stores can offer cheaper cannabis than “back alley” dealers.

Manitoba has “worked to keep our price competitive or as low as we can,” Pedersen said, while keeping some revenue for public-safety campaigns. “It’s in the news all the time about products that have been laced with other drugs, so that’s a risk that people will have to assess for themselves.”

Blair responded Monday licensed producers might achieve economies of scale that make their pot cheaper than existing dealers. “We are going to have to be competitive, not just in price, but in quality, choice and access,” he said.

Federal Conservative MP Marilyn Gladu said she’s concerned the black market will persist, because she’s heard edibles represent almost one-third of the existing recreational market, but those products won’t be legal for at least another year.

“That’s a business-model competition that needs to be addressed, in order to eliminate organized crime,” she said.

Gladu also feared Canadians will be reluctant to order marijuana online, because their information would be recorded in government databases which are occasionally hacked. That could cause problems for some who want to cross the United States border, she said.

— with files from Jessica Botelho-Urbanski

dylan.robertson@freepress.mb.ca