Economic Impact Analysis of Cannabis Legalization - Question Period
Thursday, October 12, 2017
MS. CLAUDIA CHENDER « » : My question is for the Minister of Business. Since legalizing cannabis, Colorado and Washington have each collected hundreds of millions in state taxes. Here at home, a CIBC report is suggesting that Canada's federal and provincial governments could reap as much as $5 billion annually in tax revenues from legalization. This revenue could be used to offset health, education, enforcement, and other costs resulting from legalization.
That being said, we've heard very little from this government to date about the economic impact of legalizing cannabis here in Nova Scotia. So, I ask the minister, what economic analysis is his department undertaking to assess the legalization of cannabis, and when will this analysis be shared with the public?
HON. GEOFF MACLELLAN « » : Look, from our government's perspective, and from the national government as well, the key focal point is safety, and how we're going to do this when it comes online in 2018 is really the focal point in terms of how we're going to protect Nova Scotians, and all Canadians. We haven't done a deep-dive economic analysis at this point.
As we get into the discussions about how we're going to distribute, and how the laws are going to be shaped, and how the policy is going to work here in the province, we will have some of that information. But I think it's very troubling that there is a perception out there that this is going to be a cash windfall. But when you look at the ideas of enforcement, regulation, all the costs that are going to be associated, there's not going to be a billion dollars sitting in a briefcase at the end of this process. (Interruption) Or anywhere.
We have to make sure that we're giving accurate information to Nova Scotians to
ensure that they understand that the focal point is about safety. (Interruptions)
MS. CHENDER « » : With respect, I wasn't indicating I thought there would be a stash of cash, more that I thought it would be appropriate to have an economic analysis at this time.
There will be significant demand for cannabis once it's legalized. A lack of local supply will create a number of issues, including missed business opportunities, ongoing dependence on the black market, and the concern that those who use cannabis for medicinal purposes, importantly, may not be able to access this medication once it's fully legalized.
There are only 35 licensed producers in the country - and zero in Nova Scotia. While there are two operations looking to get under way in Truro and Queens County, it's unclear how much of the province's demand will be met by production at these facilities, if they are indeed approved.
I ask the minister, with legalization of cannabis looming, what is he doing to allay concerns about lack of local supply that could result in lack of access for medicinal purposes, and an ongoing dependence on the black market?
HON. MARK FUREY « » : There are two separate discussions here; the stream that provides medicinal marijuana now will continue. We have engaged our federal colleagues around the issue of demand. We've also engaged with Health Canada to determine when Nova Scotia can anticipate announcements relative to producers in the Province of Nova Scotia.
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