Open Letter to BC Party Leaders
The following is text from a letter sent to each of BC’s three major party leaders from the President of the BC Craft Farmers Co-Op on September 10, 2024:
Re: Independent Review of Failed BC Cannabis Policies Needed After 6 Years of Legalization
With the upcoming provincial election, I am contacting you on behalf of the members and supporters of our BC Craft Farmers Co-Op (BCCFC) requesting that you commit to an independent review of the current BC government’s cannabis policies if elected Premier next month.
BCCFC was established in 2020 under the BC Cooperatives Act. We are volunteers and represent licensed craft cannabis farmers, processors, independent retailers, consumers, supporters and sector leaders. Our mission is to:
- maintain BC’s international brand as one of the world’s top cannabis producers
- help BC’s craft and medical cannabis farmers transition to Canada’s new legal market
- ensure consumers and patients can access fresh, locally grown cannabis in the legal market.
Delegates attending our annual BC Craft Cannabis Summit earlier this year in Prince George unanimously approved a policy resolution calling on the BC government to launch an Independent Review of their failed cannabis policies – similar to the recently completed Expert Panel review of the federal Cannabis Act.
As one of BC’s largest cannabis associations, we believe BC should do the same, especially since the federal Panel’s 97-page report raised concerns about how some provincial governments are governing cannabis sales and distribution. Among other things, the report observed:
- Provincial distributors hold a great deal of influence over the success of prospective suppliers, as they are the main purchasers of cannabis.
- Provincial distributors must make choices about how they operate, and in most jurisdictions, they have exercised their monopsony power (being the sole buyer in a market) in a way that we see as detrimental to licensed producers and processors.
- Scenarios where provincial distributors dictate terms often leads to adverse effects, including lower prices for cannabis producers, reduced incentives for innovation and an overall imbalance in the bargaining power.
These resonate in BC. Our world-leading cannabis sector is not doing well under the current government. What should be an economic engine that creates thousands of BC jobs and new tourism opportunities has become a consolidated legal market that favours large corporate and government institutions that have enjoyed ready access to capital.
BC’s approach has perpetuated negative stigma and created scenarios where our world-leading craft farmers, processors and independent retailers are struggling to survive. Many have been left with no option but to cease operations under a mountain of provincial fees, taxes and red tape. Ancillary businesses have also closed or moved to other provinces.
The independent federal review of the Cannabis Act led to improvements that can benefit BC farmers and finally chart a path towards a sovereign First Nations regime. We have suggested these for years with little support from the provincial government.
One year ago, BCCFC sounded the alarm to BC’s Minister of Finance about the negative impact of BC cannabis policies on the economy. As requested, we offered constructive solutions. The response reaffirms why an independent review is needed:
- The government took 10 months to reply. Dozens of businesses collapsed during this time of silence and inaction.
- The Minister responsible for the failed policies responded for the Finance Minister.
- The response continues to abdicate leadership by passing the buck to Ottawa. Instead, BC should be returning a portion of their newfound cannabis tax revenue to hard-working craft farmers struggling to survive.
- BC continues to delay any reasonable improvements that would encourage farm gate sales and cannabis tourism opportunities.
- To protect their distribution and purchasing monopoly, BC is still refusing to remove their unfair 15% handling tax on craft farmers choosing to market, warehouse and distribute cannabis under BC’s direct delivery program. This handling tax is imposed despite the fact BC does not handle any product in these circumstances.
Unfortunately, BC policies have created unfair circumstances where the provincial government is cannabis regulator, sole purchaser and retail competitor. To ensure BC is not abusing this privileged position, an independent review is required to reverse consequences that may have been unforeseen when original cannabis legislation was drafted six years ago.
In this light, we hope you will respond Yes or No to this question:
Now that we are six years into cannabis legalization, and given the current state of BC’s world leading industry, will you agree to launch an independent, expert review of the BC government’s cannabis policies if you are elected Premier next month? YES or NO.
If requested, BCCFC can facilitate the expertise of our membership across the province to support an independent review which must fully respect Indigenous rights and experience.
Cannabis is one of BC’s largest agriculture sectors with significant potential for growth. Our hope is that entities of all sophistication and sizes have the equal ability to thrive and operate their businesses on a level playing field in the future.
We look forward to your response at info@bccraftfarmerscoop.com. I will contact other party leaders with the same request. Please drop me a line if you have any questions.
Yours truly,
Tara Kirkpatrick, President
BC Craft Farmers Co-Op
cc: BCCFC members and supporters