Upon legalization in Canada this fall, Ontario has announced a government-run online retail store will sell cannabis to those 19 years of age and older until a “private retail model” is launched in 2019.
Finance Minister Vic Fedeli and Attorney General Caroline Mulroney made the announcement on Monday afternoon ahead of Canadian legalization of recreational marijuana on Oct. 17.
“We will be ready to put in place a safe, legal system for cannabis retail that will protect consumers,” Mulroney said in a news release issued on Monday afternoon. “We will also be ready to undermine the illegal market and protect Ontario’s roads.”
“Most importantly of all, we will be ready to protect our kids.”
The online platform to purchase cannabis will be operated by the Ontario Cannabis Store, which will include a verification system and home delivery.
Ontario residents will be able to purchase up to 30 grams of cannabis, complying with the federal government’s possession limit. The online platform will sell dried cannabis, cannabis oil-based products, cannabis seeds and accessories.
“Throughout this process we have held fast to some non-negotiable principles: public safety is paramount,” Fedeli said in the news release. “We will make sure our youth are safe; our roads are safe and that we work with our municipalities to ensure our neighbourhoods are safe.”
The PC government said they will consult municipalities, Indigenous communities, law enforcement, public health advocates, businesses and consumer groups prior to opening retail stores, which is expected to happen by April 1, 2019.
Municipalities will be given a “one-time window” that allows them to opt-out of permitting cannabis retails stores within their boundaries, but no details on when these consultations will take place has been announced. The Ontario government said they will also provide $40 million to municipalities to “help local governments keep their communities safe” over the first two years of implementation.
“The government of Ontario will not be in the business of running physical cannabis stores,” Fedeli said. “Instead, we will work with private sector businesses to build a safe, reliable retail system that will divert sales away from the illegal market.”
“In order to protect our communities – we have to work closely with our municipalities. In fact, they are our essential partners. We are committed to creating a safe retail model that eliminates the illegal cannabis market in Ontario. We are taking a balanced and responsible approach to building a system that works.”
The Ontario government said these private retailers will be “regulated” and have to follow provincial rules. Once these retail stores are open, the Ontario Cannabis Store will act in a wholesale function.
The regulations for retailers will include set hours of operation, staff training and restricted advertising, the PC government said.
Speaking at a news conference on Monday, Fedeli said a “zero-tolerance policy” will be implemented to those continuing to operate illegally.
“There is a point that the attorney general and I would like to make very clear today, the cannabis dispensaries and store fronts that are open today are illegal and they will remain illegal after Oct. 17,” he said. “We will have zero tolerance for any retailer who continues to sell cannabis illegally.”
First time offenders for those who sell or distribute cannabis illegally in the fall will face a $250,000 fine and/or up to two years in prison. A maximum fine of $1 million will be handed to corporations that sell or distribute cannabis illegally or allow their property to be used to sell or distribute illegal cannabis.
Political reaction to pot announcement
Following the announcement, reaction came in swiftly from local and provincial politicians.
Mayor John Tory’s office said Tory is looking forward to discussing this plan with the province in the coming days.
“The Mayor supports legalization but has always said that support is conditional on three things: neighbourhood and family safety – especially kids – must be protected, public health must not be compromised and Toronto cannot be burdened with the additional costs created by these changes,” a statement from Tory’s office said.
“He will continue to advocate for these three conditions as we move toward a retail model.”
Official Opposition Leader Andrea Horwath said she still believes the safest way to sell cannabis is through the public sector.
“LCBO staff have the experience and training to ensure socially responsible access,” she said. “One of our main concerns has always been that the model selected by the government needs to push the criminal element out of the picture – Kathleen Wynne’s plan to only allow sales at 40 stores across the province was never going to do that.”
“Doug Ford needs to make sure that the promised consultation on the private retail model is open, transparent and thorough and includes the voices of as many Ontarians as possible.”
The Green Party of Ontario said the PC government was “right to change course” from the Liberals previous plans to sell pot once it was legalized.
“Licencing and regulating local dispensaries to sell cannabis is the practical way forward,” Ontario Green Party Leader Mike Schreiner said in a statement issued following the announcement. “I am pleased that Premier Ford has listened to the wisdom of experts on this issue.”
“It’s important that this change create a new space for commercial activity for small businesses, farmers and Indigenous organizations to replace organized crime and underground markets.”
Bill Blair, the minister of border security and organized crime, spoke to CP24 about the announcement on Monday.
“In every province and territory they are establishing an online distribution system and then a variety of retail stores,” he said. “In some jurisdictions those are government monopoly stores and in other jurisdictions they are privately licenced establishments but that is as determined quite appropriately by the provincial jurisdiction as long as they ensure that this drug is not available to kids and that they are effective in displacing that illicit market then we’re quite content with whatever regulatory regime they establish.”
Political strategist Jim Warren told CP24 the PC's plan means “big bucks” for businesses in the private sector.
“The premier really wants to put his mark on this – on an issue that he didn’t get elected on, the liberals got elected on, and it will be interesting to see what happens come next April (for the federal election) because if it doesn’t sort of keep the liberals happy then this could be an issue for the liberals as they try to get re-elected next fall.”
