Cannabis 2023 Budget Lament: Time For A Canadian Reset
‘I’m mad as hell and I’m not going to take it any more” Howard Beale, Network (1976)
Most industry watchers probably know by now the Federal Government’s latest budget did virtually nothing for our beleaguered yet large, growing legal cannabis industry. This is shameful as well as totally stupid from a public policy standpoint. I don’t want to rehash the same compelling rationale for lower taxes and regulatory reform nor supplicate myself any more than others have.
Where do we go from here?
Our sector needs to accept some realities.
First, the federal government couldn’t care less about the industry or the positive impact it has on our economy and society. I said this when the Cannabis Act came into effect in 2018. Nowhere in the legislative objectives was the idea of promoting a healthy industry even though much was discussed about tax levels and fees. After 5 years of legalization, the Feds have done nothing to improve regulatory deficiencies. Meanwhile, industry continues to suffer.
Hoping for change is no longer a prudent approach. Furthermore, naive hopey-feely sentiments ring hollow and only leave a bitter taste in LP’s mouths.
The second hard reality is that results matter when it comes to industry outreach. Current lobbying efforts have been ineffectual and must be improved. Fortunately, this kind of change is within our grasp.
1) Focus on Health Canada, for now
With all due respect to Mr Smitherman, an ex-provincial politician is not the right person to influence Health Canada and federal politicians. Our industry association needs the Connor McDavid of government lobbying: someone with deep access and influence inside the PMO and upper reaches of Health Canada.
2) Be innovative
I am not privy to every conversation with politicians and policymakers but what I do see is that most of our industry appeals have been simplistic, and don't enable a win-win with government needs (e.g., collecting tax revenues, saving face etc). For example, there are creative ways to structure excise taxes payments that lessen the burden on LPs, reduce payment delinquency and avoid setting tax relief/avoidance precedents.
3) Come together
Sometimes, even I am not immune to spouting milquetoast industry appeals for greater collective effort. I don’t have exact figures on LP support for our lobbying efforts but I can’t imagine it is big enough to meet the challenge, including countering the lobbying efforts of competing sectors and stakeholder. Surely a national industry made up of hundreds of LPs and tens of thousands of jobs can muster more resources and cash, for this fight. It’s time we put aside petty differences and present a more united and determined front.
#2023budget #CRA #excisetax #HealthCanada #LP #CannabisAct #regulations