Provincial Government Is Privatizing Cannabis NB
FREDERICTON – The Progressive Conservative government has decided to privatize the sale of recreational cannabis in New Brunswick.
The province has issued a request for proposals (RFP) to find a single operator in the private sector to take over the 20 Cannabis NB stores.
Finance minister Ernie Steeves says the province should never have been involved in selling cannabis.
“Government shouldn’t be in the business of business. We should be in the business of regulating. We’ve proven that we can’t run … you can’t run a business the same way as you run a government. In government it takes so long to make a decision because we have the duty to consult of course,” he said.
Steeves believes Cannabis NB has failed because prices have been too high, store leases are too expensive and he adds Health Canada has made cannabis difficult to sell with strict regulations.
The request for proposals (RFP) will remain open until January 10 with a formal announcement on a new operator expected by next spring.
A transition to the new private model could happen by next fall.
Cannabis NB currently employs about 250 people and the province says a private operator will be under no obligation to hire them.
On Thursday afternoon, the CEO of Cannabis NB, Patrick Parent, said they will remain focused on lowering prices and maintaining good customer service in the wake of the province’s decision to privatize the sale of recreational cannabis.
“The recent announcement and process regarding the future sale and distribution of cannabis in New Brunswick rests with the provincial government. At Cannabis NB, we intend to remain clearly focused on improving prices and lowering costs,” said Parent.
“We will continue to make consumers aware of our offers, albeit within the very restrictive regulatory framework around advertising. We will continue to offer an exceptional educational in-store and online experience fully respecting the federal and provincial laws governing the cannabis industry.”
Until such time as the retail model changes, Cannabis NB will manage all aspects of its operations in order to provide the best value to its customers and its shareholders.”
Allan Dearing is a reporter with 91.9 The Bend, a Huddle content partner.