With marijuana legalization coming for July 2018, federal and provincial governments are in discussion over who is getting what.
Many people have their eyes on the price of the multimillion marijuana industry with the province in negotiations with the federal government regarding revenue distribution of marijuana taxation.
Finance Minister Bill Morneau met with provincial and territorial Finance Ministers in Ottawa, starting on Dec. 10 to discuss many different issues, including those surrounding federal objectives when it comes to marijuana legalization and how taxation will impact both the country and the provinces.
Morneau announced during a press conference on Dec. 11 that the provinces will be getting a 75 per cent share of tax revenue while the federal government will be taking 25 per cent over the next two years capping off at $100 million a year.
Estimates have been made on the movement from the black market to what Morneau hopes is a legal and regulated market.
Government prices have been set at $10/gram with taxes at $1 or 10 percent included in that price, with expectations at around $400 million a year in tax excise revenue.
“Our expectation is that by keeping the prices low, we will be able to get rid of the black market. However, that will happen over time.”
Parliamentary Secretary to the Minister of Health, Bill Blair was also at the meetings with the provinces and told Catherine Cullen with CBC’s Power and Politics, the federal government is not getting into the marijuana industry for revenue but for the regulating of marijuana.
“We know the current system isn’t working but in order to make the regulations work, we know we have two really important partners...the provinces and municipalities have a very important role to play.”
Provinces and municipalities will be incurring costs when it comes to implementing and maintaining the programs within the provinces and Blair says they do recognize the responsibilities of both parties.
“We recognize the role of municipalities in making sure that this works. That we do a better job in protecting our kids and communities and displacing the illicit market really requires the provinces to support municipalities to do the things that only municipalities can do.”
Costs will be incurred at all levels of government, says Morneau, with prices varying from province to province depending on provincial needs and spending.
Saskatchewan Finance Minister Donna Harpauer, says that provinces will need additional policing costs for road side testing for drug-impaired driving and there was talk of what the provinces will be paying for increases to healthcare costs.
“For every province we’re going to have to put a regulatory mechanism of some sort in place.”
The provinces were united in their discussion with the federal government, says Harpauer and the majority, excluding Manitoba, agree to the terms discussed.
Cameron Friesen, Minister of Finance for Manitoba, wanted time to talk to Premier Brian Pallister before agreeing to the terms set by the federal government, says Harpauer, which is why Manitoba is the only province not in full agreement like the rest of the provinces.
City of Humboldt Mayor Rob Muench says the 75 per cent going to the provinces is a better move than the 50-50 split initially discussed by the federal government being that he sees the provinces and municipalities being impacted more than the federal government.
“We going to be dealing with the policing, the different things that come with that and the province is going to be dealing with the social aspect of it, social services and the healthcare...this was a good move in the right direction.”
There are still a lot of unanswered questions as Muench speaks with mayors from across the province about what to expect with impacts and funding.
“We’re hoping to get some answers quickly. Especially from the province and how they’re going to distribute that money down to the municipalities.”
Drugs as a whole is always going to be a concern, says Muench, and he does hear concerns from the public regarding drugs in Humboldt that get passed on to the RCMP.
Legalization will be a learning experience, he says.
“There are still a lot of unanswered questions and as things progress in the next number of months, we’re going to learn a little bit more and try to prepare ourselves for what’s coming.”
The federal government will be meeting again in December 2018, says Morneau, to see how the provinces are fairing with legalization but discussion will take place again after the two year $100 million cap agreement expires to make sure they are getting it right.
