The Yukon Party official Opposition seems to have embraced cannabis retail sales as a cause du jour.

The Yukon Party official Opposition seems to have embraced cannabis retail sales as a cause du jour.

Last week, party leader Currie Dixon addressed the legislature on behalf of cannabis retailers looking to tap into online sales.

It has been 3 1/2 years since recreational cannabis was legalized for adult use in Canada, he pointed out.

Across the country, this new industry has thrived, becoming a major source of employment and economic activity,” Dixon told the legislature.

“Despite the success seen in just about every other part of the country, businesses in the Yukon’s cannabis sector have struggled,” he said.

“Several operators say that unnecessary government regulation and red tape are holding the industry back. The Yukon Party has been pointing out concerns with the Liberals’ approach to growing government and competing with this industry since the start, and now we are seeing the results.”

Dixon asked, “Will the Liberal government reconsider their approach to cannabis and start getting out of the way of business in this sector?”

Economic Development Minister Ranj Pillai, who is also responsible for the Yukon Liquor Corp., said the territory is witnessing “growing sales by the private sector.

“Yukoners defined what government structure they wanted to see. They wanted to see a level of government responsibility within that. They wanted to see a responsible approach to this program.”

The government opened the first store and, within a year, vowed to put it in the hands of the private sector – which it did.

“Sales growth is an indication that we are displacing the illicit market, which people wanted to see,” Pillai said. “Remember that, 3 1/2 years ago, 100 per cent of this was black market. Again, we are not going to change it, because we have a successful model.

“Cannabis sales through the corporation to licensees increased by more than $2.5 million in 2019-20. Explain to me how that is — that’s not lining up with the preamble from the member opposite.”

Dixon said, “We have heard from the largest cannabis retailer who says that they are struggling. We have heard from a cannabis retailer in a community (Carmacks) that has shut down because of government regulation.

“So, it is not just me raising this; it is the industry itself that is raising these very serious concerns.”

Despite the concerns raised by his party when cannabis legislation was first introduced, Dixon said, “the Liberals have chosen a model that puts the government right in the middle of the private sector. No one should be surprised that this hasn’t worked well for the private sector.

“Will the Liberal government get out of the way of business and give the private sector the tools that they need to compete with and displace the black market and let this emerging private sector of our economy start to grow and thrive?”

Pillai suggested “a quick walk down Memory Lane.

“Remember that when we stood in this house to legalize cannabis, everybody who is sitting in that party voted against it. It’s a big move to vote against actually having this industry in place and now being cheerleaders and champions of it. It’s good to hear the change.”

Early data indicate the last fiscal year continued to see sales growth at an increase of approximately 17 per cent, the minister added.

“Again, they talk about getting out of the way. We just reduced the wholesale price. We just lowered the price for the private sector. So, again, we are selling more.”

Dixon wasn’t deterred.

“It’s clear that what we’re hearing from businesses — they are struggling with this model, and it is the model that was brought forward by this Liberal government and that this party voted against and did not support. We wanted to see more freedom, not less.”

The industry, he said, “is being bogged down by a complex regulatory environment — red tape, rules that don’t make sense — and there is also the inefficient product markup and burdensome tax policies.

“Not only does this hinder the ability of these businesses to grow and thrive, but Liberal policies have been helping to keep the black market alive and well.”

The solution, Dixon said, is for the government to “get out of the way and fully privatize cannabis.”

Pillai said he realizes “there has been some frustration in the time it has moved to get e-commerce in place. But again, we committed in the fall to have it in May. I stand by that commitment.

“Now, do I think that the private sector could do better? Absolutely, I do. Do I think that they will market better? Absolutely, I do.

“But at the same time, we’re seeing growth, we’re sticking to what we did, and we’re getting out of the way.”