Pubdate: Mon, 25 Apr 2016
Source: Record, The (Kitchener, CN ON)
Page: A1
Copyright: 2016 Metroland Media Group Ltd.
Contact:  http://www.therecord.com/
Details: http://www.mapinc.org/media/225
Author: Jim Bronskill

FEDS WARNED OF RISKS TO POT REGIME

Internal Documents Flag Organized Crime Infiltration As Urgent Issue
To Confront

OTTAWA - Legalizing marijuana won't automatically make Canada's black
market for weed go up in smoke or banish organized crime, warns a
draft federal discussion paper on regulation of the drug.

Justin Trudeau's Liberal government says a legal marijuana regime will
keep pot out of the hands of children and deny criminals the profits
of illicit dealing.

However, the December draft paper, obtained by The Canadian Press
through the Access to Information Act, flags the ongoing involvement
of organized crime - including possible infiltration of the new system
- - as a key issue the government must confront.

The Liberals plan to introduce legislation next year to remove
marijuana consumption and incidental possession from the Criminal
Code, and create new laws to more severely punish those who provide
pot to minors or drive while under its influence. In the House of
Commons, Public Safety Minister Ralph Goodale recently said the new
system would do a far better job of stopping the flow of shady money
"to illegal gangs and organized crime."

The draft discussion paper outlines a more complex
scenario.

"As the experiences of other jurisdictions and of the regulation of
alcohol and tobacco in Canada have shown, regulating a substance does
not automatically remove it from illicit markets as evidenced by
importation and sales of contraband tobacco," the paper says.

"Given the degree to which organized crime is currently involved in
the marijuana market, they could continue to produce marijuana
illicitly and may attempt to infiltrate a regulated industry."

Canada's illegal market for marijuana is estimated to be worth
billions of dollars and organized crime is known to play a major role
in illicit production, importation and distribution, the paper says.
That means those who obtain pot - with the exception of sanctioned
medical users - are exposed to criminal elements.

The paper warns of severe risks and consequences:

- - Pressure from criminal elements to use more serious and dangerous
drugs such as cocaine and crystal meth.

- - Enticement of purchasers to become local distributors and therefore
embark on a serious criminal path.

- - Exposure to extortion, particularly those who do not pay for
purchases or, if entangled in dealing, fail to follow orders or meet
quotas.

The federal and provincial governments should have the power to levy
taxes on marijuana, with Ottawa responsible for taxing manufacturers
and importers, and provinces levying taxes at the retail level, the
C.D. Howe Institute recommended in a recently published report.

The federal government should discourage black-market activity by
defining the legal amount of pot someone can possess, as well as
maintaining and building on penalties for illegal production and
trafficking, the Toronto-based think tank argued.

"The challenge for policy-makers is to set tax rates that do not
foster an illicit market alongside legal sales."  
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MAP posted-by: Jo-D