The Failed Expert Review of Canada’s Cannabis Act – Part 1
I’m not going to recap all the panel’s recommendations and observations. #MattLamers did a good job of that in MJBiz Daily.
Suffice to say, this mandated, seriously late (~18 months) and non-binding review struck out when it comes to the 6 critical problems facing our industry:
1. High excise taxes
2. Unlimited licenses
3. Overly restrictive branding rules
4. Weak enforcement of the illicit market
5. Onerous THC limits on edibles
6. CBD deregulation
Sadly, too many people had unrealistic expectations of what to expect. Hope is never a good strategy.
Yes, there were some good, albeit non-binding recommendations. But for most LPs, the report was a box-checking exercise for a government looking to put lipstick on a pig. This flawed exercise also demonstrates that the Liberal government no longer carea about cannabis - or about program efficiency and implementation for that matter.
A long-delayed report could have been much better had it been properly designed upfront.
Let’s start with its design and execution. These things matter, as what you receive as outputs is a function of the inputs and arithmetic.
> Don’t accept the ‘better late than never’ argument.
Time is money and government's tardiness suggests indifference and incompetence.
> Poor selection of experts [sic]
We can debate the credentials of the panelists (especially its Trudeau loyalist Chairman) but the omissions were glaring. Nobody represented two key groups: LPs and consumers. Interviewing the former as a stakeholder is not the same as having a someone on the panel. And, you would think that the people who spend $5B annually on cannabis would get a direct voice on policy feedback.
> Insufficient sector feedback
There were brief windows to contribute. The interviewees were hardly representative of the industry. Key ecosystem players such as bankers were not even consulted.
> The Cannabis Act objectives are myopic
The Act cares little about fostering a healthy, world-class industry. Not surprisingly, the review did not prioritize industry concerns or seek to rock the political boat amplifying the sector's major challenges.
> We need to accept reality
Five plus years into legalization, it’s time to stop lauding the Cannabis Act and being thankful for legality. This Beta-quality legislation needs to be retooled, and fast.
Much is at stake, beyond the fortunes of many LPs
- Thousands of LP and ancillary jobs are at risk, many in vulnerable communities.
- We were bait & switched. The Feds promised to invest tax revenues back into education, safe usage and enforcement. That didn’t happen. Instead, our money disappeared into the general (often wasteful) coffers, including paying for a very expensive cannabis bureaucracy.
#CannabisAct #ExpertPanel #Review #LPS #policy #legislation