Province Decides Not To Sell Cannabis NB
FREDERICTON— Cannabis NB will not be sold to a single private operator after all.
The province announced Friday that it had discontinued the request for proposal (RFP) process.
“Discussions with the top-ranked proponent have concluded and our government has decided that the best approach for New Brunswickers is to continue with the Cannabis NB model that is now in place,” Premier Blaine Higgs said in a statement.
The announcement comes amid growing calls for the provincial government to halt the sale process.
A First Nations leader and 10 New Brunswick-based cannabis businesses recently sent a letter to the premier. They feared Cannabis NB would end up in the hands of a single outside company that will stifle growth of the local industry.
The Cities of New Brunswick Association also sent a letter to the premier, arguing that the main reasons for the government’s initial decision to explore privatization are no longer relevant due to the rise in product selection, resolved supply shortages, and higher profits with financial sustainability anticipated.
After being plagued by multimillion-dollar quarterly losses since its opening in October 2018, Cannabis NB has recorded four straight profitable quarters.
“While we were pleased with the level of interest and engagement from the private sector, Cannabis NB’s performance over the past few months, as well as careful consideration of the social and economic implications of the retail model, has given us confidence that New Brunswick taxpayers and consumers can be well served through continued improvements within the current model,” Finance Minister Ernie Steeves said in the statement.
The RFP for a single private operator received eight responses by the Jan. 10, 2020, deadline.
Assembly of First Nations Regional Chief Roger Augustine wrote a statement to the media where he said he was happy that the province listened to the concerns of the industry before proceeding with the sale.
“An effort to engage the cannabis industry, municipalities, health and safety professionals, the general citizenry, and the First Nations before making a final decision on the sale of Cannabis NB was not too much to ask from the Crown,” said Chief Augustine.
“All residents of the province should take note that the Crown has listened to someone else’s talking on this matter, not, only its own. It listened to the industry and to the Cities’ Association and many others. This is a good thing.”
In a statement to Huddle, Tanner Stewart, CEO and co-founder of Stewart Farms, says the news is a relief to many New Brunswickers.
“Today’s news has put a smile on the face of thousands of New Brunswickers. Keeping the industry within the government’s control and, therefore, New Brunswick citizens was a great decision by the Higgs government,” he wrote. “Now, we have the option to open up the industry to all New Brunswickers, support dozens of more entrepreneurs and create hundreds of additional jobs.”
Provincial officials said no other details of the short-listed proponents or their proposals will be released to protect the confidentiality of the process.
With files from Brad Perry of Acadia News and Liam Floyd of Huddle.