(Ottawa) A review of federal legislation that paved the way for the recreational use and legal sale of cannabis reveals that businesses in the legal market say they are struggling to turn a profit and maintain financial viability.
These companies cite the burden of taxes, markups, fees and regulatory compliance costs as obstacles to the viability of the sector, which they say is a prerequisite for maintaining a safe and legal source of supply and in the fight against the illicit market.
The legislative review was launched by the federal government last year to analyze the Cannabis Act, which in 2018 set purchase and possession limits at 30 grams of dried cannabis or the equivalent, limited the youth access to marijuana and established safety requirements for the cultivation, sale and transportation of the substances.
The report says public health experts remain supportive of the legislation’s precautionary approach, including THC limits for edible cannabis products and restrictions on promotion, while some suggest considering additional stricter age limits for who can possess, distribute and purchase cannabis.
Although the committee that conducted the review says it found progress has been made in deterring criminal activity and displacing the illicit market, many in public safety remain concerned about unlicensed retail stores and illegal online channels.
Panelists heard varied perspectives on whether consumer demand was being met. Some consumers are still looking for products not available on the legal market, such as more potent edibles. Additionally, access is limited in some rural and remote areas.