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Yukon Party Leader Currie Dixon

Cannabis sellers are struggling, YP tells minister

The Yukon Party official Opposition seems to have embraced cannabis retail sales as a cause du jour.

By Tim Giilck on April 18, 2022

The Yukon Party official Opposition seems to have embraced cannabis retail sales as a cause du jour.

Last week, party leader Currie Dixon addressed the legislature on behalf of cannabis retailers looking to tap into online sales.

It has been 3 1/2 years since recreational cannabis was legalized for adult use in Canada, he pointed out.

Across the country, this new industry has thrived, becoming a major source of employment and economic activity,” Dixon told the legislature.

“Despite the success seen in just about every other part of the country, businesses in the Yukon’s cannabis sector have struggled,” he said.

“Several operators say that unnecessary government regulation and red tape are holding the industry back. The Yukon Party has been pointing out concerns with the Liberals’ approach to growing government and competing with this industry since the start, and now we are seeing the results.”

Dixon asked, “Will the Liberal government reconsider their approach to cannabis and start getting out of the way of business in this sector?”

Economic Development Minister Ranj Pillai, who is also responsible for the Yukon Liquor Corp., said the territory is witnessing “growing sales by the private sector.

“Yukoners defined what government structure they wanted to see. They wanted to see a level of government responsibility within that. They wanted to see a responsible approach to this program.”

The government opened the first store and, within a year, vowed to put it in the hands of the private sector – which it did.

“Sales growth is an indication that we are displacing the illicit market, which people wanted to see,” Pillai said. “Remember that, 3 1/2 years ago, 100 per cent of this was black market. Again, we are not going to change it, because we have a successful model.

“Cannabis sales through the corporation to licensees increased by more than $2.5 million in 2019-20. Explain to me how that is — that’s not lining up with the preamble from the member opposite.”

Dixon said, “We have heard from the largest cannabis retailer who says that they are struggling. We have heard from a cannabis retailer in a community (Carmacks) that has shut down because of government regulation.

“So, it is not just me raising this; it is the industry itself that is raising these very serious concerns.”

Despite the concerns raised by his party when cannabis legislation was first introduced, Dixon said, “the Liberals have chosen a model that puts the government right in the middle of the private sector. No one should be surprised that this hasn’t worked well for the private sector.

“Will the Liberal government get out of the way of business and give the private sector the tools that they need to compete with and displace the black market and let this emerging private sector of our economy start to grow and thrive?”

Pillai suggested “a quick walk down Memory Lane.

“Remember that when we stood in this house to legalize cannabis, everybody who is sitting in that party voted against it. It’s a big move to vote against actually having this industry in place and now being cheerleaders and champions of it. It’s good to hear the change.”

Early data indicate the last fiscal year continued to see sales growth at an increase of approximately 17 per cent, the minister added.

“Again, they talk about getting out of the way. We just reduced the wholesale price. We just lowered the price for the private sector. So, again, we are selling more.”

Dixon wasn’t deterred.

“It’s clear that what we’re hearing from businesses — they are struggling with this model, and it is the model that was brought forward by this Liberal government and that this party voted against and did not support. We wanted to see more freedom, not less.”

The industry, he said, “is being bogged down by a complex regulatory environment — red tape, rules that don’t make sense — and there is also the inefficient product markup and burdensome tax policies.

“Not only does this hinder the ability of these businesses to grow and thrive, but Liberal policies have been helping to keep the black market alive and well.”

The solution, Dixon said, is for the government to “get out of the way and fully privatize cannabis.”

Pillai said he realizes “there has been some frustration in the time it has moved to get e-commerce in place. But again, we committed in the fall to have it in May. I stand by that commitment.

“Now, do I think that the private sector could do better? Absolutely, I do. Do I think that they will market better? Absolutely, I do.

“But at the same time, we’re seeing growth, we’re sticking to what we did, and we’re getting out of the way.”

Comments (26)

Up 8 Down 1

Mr Facts on Apr 23, 2022 at 2:53 pm

Did you know?

"Health Canada imposed safety requirements that ensure the market and the related products are well-regulated. To ensure that products are free of contaminants, licensed cannabis producers and product manufacturers are using irradiation methods. Approximately 90% of licensed producers are using irradiation to sterilize their products."

No wonder everything is usually bone dry. Overpriced garbage. I'll stick to the black market thanks.

Up 13 Down 0

Charlie's Aunt on Apr 22, 2022 at 4:41 pm

Wow, that must be a first, for someone selling weed to be struggling financially.

Up 14 Down 0

moe on Apr 22, 2022 at 4:08 pm

I am curious about how much the local pot store owners are really struggling. Or is it a matter of expectations of many hundreds of thousands of dollars a year rolling into their bank accounts, that is not being met.

Define struggling. These are small businesses and it's retail. Nobody needs to guarantee weed stores big profits. I don't see Currie Dixon running to the rescue of stores selling blue jeans and running shoes, who are probably making less.

Up 4 Down 14

LENNIE on Apr 22, 2022 at 12:15 pm

CURRIE, This is one of the first times I can agree with you. You are on to something here. The government should not hinder small business from survival. Keep this up. Do a good job and I/we will vote for you. Get on CBC Whitehorse morning show!!!

Up 4 Down 1

Chuck Farley on Apr 22, 2022 at 8:14 am

Wilf Where is Joe Zelesny on this topic; Joe is irrelevant, move on.

Up 7 Down 4

ASC on Apr 21, 2022 at 1:20 pm

Shouldn't you focus on your MLA's who are running businesses and competing against the community members who voted for them, rather than this?

Up 13 Down 11

Just Sayin' on Apr 21, 2022 at 1:18 pm

I hope there is a carbon tax on these substances too, as expelling the smoke from the product does contain pollutants toxic to the environment.

Up 21 Down 10

Omar on Apr 21, 2022 at 11:34 am

I have been a customer of the largest retail outlet since things were legalized and the YP report is not what I see. I see a business that has expanded into every niche possible with nice custom display cases everywhere. The shelves are stocked with more kinds of product than you can imagine and this has only shown steady growth over the 3 1/2 years. They have little sales all the time.
These are not the signs of a struggling business.
It shows that for many so called Yukon Party claims they come from the rabbit hole just like this one.

Up 4 Down 8

Mitch Holder on Apr 20, 2022 at 3:52 pm

@ Johnny - there are a FEW grade 10 high school dropouts in the Triads, make no mistake. I was speaking more to the local market in my day, not the criminal cesspool amidst us now. In those days, the RCMP did the same thing, farm the little guys until they can profit or get promoted from it. Promotion is supposed to be awarded for consistency, someone should tell the cops that sometime.

Up 4 Down 8

Mitch Holder on Apr 20, 2022 at 2:58 pm

@ Wilf - good question Wilf, how is your party doing?

Up 9 Down 13

Mitch Holder on Apr 20, 2022 at 11:46 am

So many YTG flunkies disliking like passive progressives instead of engaging, one wonders what YTG does all day? Perhaps we should request a corporate audit by the feds, see if we can't pare this excessive plane crash into something more pragmatic and manageable.

Time to send you yuppy Canericans home, without pay.

Up 10 Down 5

Wilf on Apr 19, 2022 at 4:59 pm

Where is Joe Zelesny on this topic as he is the "Yukon Freedom" partry.

Up 7 Down 10

TheHammer on Apr 19, 2022 at 4:21 pm

Dixon@ "they are struggling.." First you struggle, then you die. That's a good thing, ever heard of anti motivational syndrome? Pot plays havoc with your dream life.

Up 13 Down 5

Johnny on Apr 19, 2022 at 3:58 pm

He ain't talking about a grade 10 drop out being the black market. It's the triad gangs who secretly grow huge amounts in big a warehouse. When they get caught it's a little slap on the wrist. Threaten 100 years behind bars and I bet these triad gangs never grow another single plant again ..

Up 21 Down 9

woodcutter on Apr 19, 2022 at 1:33 pm

What is Currie smoking? it sure can't be what's out of these over regulated businesses, cause that s#*t don't make you go that goofy.

From outright refusal and worries about societal damage and destruction to the youth, to let's eliminate all the mechanisms of accountability. All this time I thought the cons were slow to adopt, but this allusion has gone "up in Smoke" with the antics.

I am sure there is issues that are much more relevant, such as housing, that the Yukon Party could be trying to address, but then none of them are facing a housing crisis, so they get into a circle and puff puff pass and come up with an idea that can create a few headlines.

Good work boys and girls, your still irrelevant.

Up 39 Down 2

Yukong on Apr 19, 2022 at 9:07 am

Dixon said, “We have heard from the largest cannabis retailer who says that they are struggling.

What a surprise, to hear that those guys are still whining to the government.

Up 44 Down 11

Adam Smith on Apr 18, 2022 at 10:45 pm

Oh for god's sake, the Yukon Party didn't even want pot legalized back when it first happened. Now suddenly they are big supporters of the industry? Flip flop a little more why don't chya Currie.

Up 39 Down 8

observation on Apr 18, 2022 at 8:53 pm

So, Dixon is suppose to be smart but keeps ignoring the data being provided and continues to argue that the industry is struggling. How about this, there 4 or 5 retailers in Yukon today, only one 2 and a half years ago. Is it possible there is something called local competition? Maybe Dixon didn't learn about that wherever he went to School.

Up 21 Down 6

Groucho d'North on Apr 18, 2022 at 8:13 pm

I hear assertions that the government's licenced outlets, including their own, are having a negative impact on the "Black Market" How do they know?

Up 16 Down 6

Used to be fed up ! on Apr 18, 2022 at 7:39 pm

All you government officials need to smoke a little cheeba and lighten up !

Up 35 Down 7

Dan Davidson on Apr 18, 2022 at 4:20 pm

Does this mean that both government and merchants are "one toke over the line" in terms of business planning?

Up 43 Down 11

Juniper Jackson on Apr 18, 2022 at 4:16 pm

Really? No one is closing down because business is so poor.

Up 44 Down 25

Mary on Apr 18, 2022 at 3:32 pm

How about taxing the crap out of this stuff and then eliminate our fuel tax.

Up 52 Down 8

Snowball on Apr 18, 2022 at 3:19 pm

Maybe the weed businesses in the Yukon shouldn't have such high prices. Be like BC - Oz's 100 dollars 3.5g sell for 40 dollar's and up. Plus Yukoners buy their weed online from BC - get with the times

Up 22 Down 19

Mitch Holder on Apr 18, 2022 at 2:47 pm

I enjoyed black market patronage far more. Grade 10 dropouts knew their product and industry better than Service Canada ever will. Pricing factored the risk of illegal ventures. It is not illegal, an eight of marijuana should cost less than 25 dollars, or the equivalent of a package of cigarettes'. Government screws this up so bad, I usually want to ID them when I buy.

Up 40 Down 31

Yukoner on Apr 18, 2022 at 2:31 pm

This isn't an industry that needs to be supported, it should be available but only to stop the black market. Long tern YG needs to raise the taxes on both cannabis and alcohol so support the long term health costs.

It's a joke every time the YLC come out saying how much money they are making, they are making money because they don't have to pay for the long term damages. It's sort of like the Yukons history for mining, don't require sufficient bonds and then we all suffer long term!

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