Oh Cannabis, why not Canada first? 

| Contributor

As the clock counts down to our federal election, an advocacy campaign has been launched to let politicians across the country know that the cannabis sector matters. 

The Oh Cannabis First campaign supports Canadians to directly email their candidates and elected representatives at the provincial and federal levels, to let them know that the cannabis industry matters, and it needs urgent attention to survive. 

In 2018, Canada made global headlines as the first G7 country to legalize cannabis. Canadians flocked to build a bold and promising industry that would bring safe access, economic growth, and global leadership.

Since then… the sound of silence. 

It’s as if the government turned the lights on and then promptly decided to never think about cannabis ever again. In the ensuing almost seven years, regulations around marketing have barely budged despite licensed producers and retailers far surpassing expectations on protecting youth and providing safe products. 

The excise tax scheme, the product of a fever dream where a gram of cannabis would sell for $10 and above, is widely acknowledged to be crippling the industry. The government set the tax at 10% of the retail price per gram or $1, whichever is greater. In a world where the wholesale price of cannabis is well under a dollar per gram and the best-selling dried flower on OCS.ca sells for $3.57 a gram, including all taxes, that tax scheme results in almost half of licensed producers either in or approaching bankruptcy. 

A 2022 report from Toronto-based law firm Miller Thomson states that losses across 183 publicly traded cannabis firms have cost Canadian investors $131 billion. Yes, you read that correctly. 

Thousands of jobs have been lost, innovation has stalled, the illegal market still makes up 25% of sales, and the government has done… nothing. Why? 

Politicians, plainly put, don’t like cannabis. During this election cycle and Ontario’s in the fall, how many candidates from the three major parties showed up for a photo opportunity at a licensed producer? Zero, despite cannabis creating more than 150,000 jobs, producing more than $8 billion in GDP and a windfall for provincial regulators and distributors, never mind the taxes. 

They’re desperate to put on a hard hat and do construction worker cosplay, but they want absolutely nothing to do with the cannabis sector. Why? It can’t just be that no one looks good in a hairnet and a paper suit. 

It’s because they still largely fear being associated with the product, which is strange, because it was legalized to reflect the fact that a majority of Canadians supported it. 

An Abacus research study published last week showed 64% of Canadians are open to the idea of the next federal government making it easier for Canada’s cannabis industry to grow. Yes, 7% of respondents said they would be “very angry” about this. But, to be fair, it’s possible that 7% wake up “very angry” about many things. 

In the midst of a trade war with the United States, Canadians have begun a long overdue conversation regarding the need to stop following and start leading. In the search for industries where this is a global possibility, cannabis has to be near the top of viable candidates. Despite an astounding level of neglect, it is still within the realm of possibility that the next government could create an environment where Canadians could innovate, build, and make a much larger contribution to the Canadian economy. 

There are no billion-dollar bailouts or subsidies required. Everyone knows what needs to be done; there just needs to be the political courage to make it happen. 

Fix the tax trap — Scrap the ludicrous $1 per-gram excise tax. It punishes producers and props up the black market. Move to a manageable percentage-of-sale model.

Let us speak — Update the draconian marketing and packaging rules. Let legal businesses inform and engage with consumers.

Enforce the law — Make it harder for illegal retailers to operate with impunity online and in stores. 

Cut the red tape — Align federal and provincial rules. Stop wasting time, money, and patience.

Back us globally — Support exports, champion Canadian cannabis on the world stage, and stop pretending this industry doesn’t exist.

Content contributed by: Daffyd Roderick is the former senior director of communications at the Ontario Cannabis Store and is the principal of Pathfinder Strategic Communications


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