Pubdate: Thu, 23 Jun 2016
Source: Toronto Star (CN ON)
Page: A7
Copyright: 2016 The Toronto Star
Contact:  http://www.thestar.com/
Details: http://www.mapinc.org/media/456
Author: Robert Benzie

ONTARIO NOT EXPECTING MUCH CASH FROM WEED

The cash-strapped Ontario government is not banking on a financial 
windfall from the looming legalization of recreational marijuana, 
says Finance Minister Charles Sousa.

With officials at Queen's Park preparing for Prime Minister Justin 
Trudeau's federal legislation next year, Sousa emphasized that no 
cannabis tax bonanza is anticipated.

"I have not taken into consideration any of the possible receipts 
into our budget plans," the finance minister, who hopes to eliminate 
a $4.3 billion deficit next year, said Tuesday.

Asked if marijuana will be a cash cow for the treasury, Sousa was 
firm: "Not at all. That's not something that I have been speculating 
on. Even when it comes to the revenue, it's not the overriding factor 
because I'm sure there's going to be a lot of costs involved in terms 
of making sure that we administer it properly."

The Ontario government expects to take in $1.2 billion in tobacco 
taxes this year, plus $611 million in beer and wine taxes, and an 
additional $2 billion from the LCBO. But provincial officials have 
not yet calculated how much revenue legalized recreational marijuana 
would bring into their coffers. Some economists have estimated it 
could be similar to the amount gleaned through tobacco taxes, while 
others predict it will be far lower.

Health Minister Eric Hoskins is concerned about the toll of increased 
marijuana smoking.

"From a health perspective as we go forward, our contributions to the 
discussions focus on harm reduction and the potential negative impact 
of marijuana. I'm not talking about medicinal marijuana here, which 
is a legal substance," he said.

Premier Kathleen Wynne has said she would like the government-owned 
Liquor Control Board of Ontario to oversee the sale of recreational 
weed. But government officials say that does not mean the LCBO's 650 
stores across Ontario would be stocking Super Lemon Haze cannabis 
next to bottles of Limoncello liqueur. They note that the Crown 
agency is also a wholesaler whose mission includes controlling access 
to booze by underage Ontarians.

"It's challenging because we're in that interesting time between the 
(federal) government indicating its intent and actually creating a 
legislative framework," Hoskins said of storefront shops.

"So there are proponents of making marijuana more readily available 
that are . . . anticipating these certain changes, yet we are in a 
legislative environment that still prohibits it," he said.

"We've seen at the municipal level the challenges - not just in 
Toronto or Vancouver - that the municipalities have faced in this 
interesting time."
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MAP posted-by: Jay Bergstrom