Pubdate: Mon, 03 Apr 2017
Source: National Post (Canada)
Copyright: 2017 Canwest Publishing Inc.
Contact: http://drugsense.org/url/wEtbT4yU
Website: http://www.nationalpost.com/
Details: http://www.mapinc.org/media/286
Author: Kevin Bissett
Page: A1

GREEN MAY BE GOLD FOR NEW BRUNSWICK'S ECONOMY

Incentives, loans given to growing firms

FREDERICTON * Marijuana ended the career of a New Brunswick premier in
the 1980s, but as Canada nears legalized weed, it is taboo no more. In
fact, the province now wants to be your marijuana supplier.

New Brunswick's Liberal government, led by 34-year-old Brian Gallant,
sees weed as green gold - an important creator of revenue and jobs in
a province that badly needs both.

It is giving producers financial incentives, has developed a community
college program for cannabis technicians, and announced March 24 that
marijuana is to be a pillar of its economic strategy.

It's certainly a different attitude than a few decades ago, when
marijuana caused a career-killing scandal for then-premier Richard
Hatfield. He was charged with criminal possession after marijuana was
found in his suitcase during a 1984 visit by the Queen. He was
acquitted, but his party lost every seat in the legislature three
years later.

These days, "The New Brunswick government is ... perhaps the most
supportive provincial government in the country of the cannabis
industry," said Kent Hovey-Smith, a spokesman for Tidal Health Solutions.

Tidal Health is building a marijuana production facility in St.
Stephen, near the Canada-U.S. border, where it hopes to create up to
40 jobs. Hovey-Smith said his company chose its location in large part
because of the provincial support.

"I think New Brunswick has a unique opportunity here, given the
government's commitment," he said. "They are interested in job
creation, but they are also willing to do something about it."

Tidal Health Solutions becomes the third marijuana production company
to call New Brunswick home - joining OrganiGram in Moncton and Zenabis
in Atholville.

Gallant said the Canadian marijuana industry is expected to be huge,
and New Brunswick wants in on the ground floor.

"The amount of economic growth that we will see throughout the country
is significant, and New Brunswick is poised to get a significant
percentage of that if we act smartly and we act appropriately," said
Gallant.

There are about 70,000 prescribed users across Canada, and the federal
government is expected to table legislation this month to legalize
weed for recreational use.

A Deloitte report last fall suggested recreational marijuana could be
worth about $22.6 billion to the Canadian economy.

"We believe that here in New Brunswick, we should do what we can to
get a piece of the economic growth that's going to happen because of
the legalization of marijuana. There are going to be jobs created,"
Gallant said.

His Liberal government announced last month that it has made weed part
of its economic strategy, and plans to "build a 'best-in-class' hub of
infrastructure and research clusters to attract new investment" in
marijuana.

The government has given a $4-million loan to Zenabis, and could
provide up to $1 million in payroll rebates to OrganiGram. Hovey-Smith
said Tidal Health is in talks for similar assistance.

Kirk MacDonald, the economic development critic for the Progressive
Conservatives, opposes the financial assistance, saying OrganiGram and
Zenabis are "the only marijuana producers in Canada to receive
corporate welfare."

And MacDonald said the government isn't doing enough to ensure the
product is safe.

"We question why the government's focus is on making and spending
money, not dealing with health and safety concerns already raised by
the federal government," he said.

Gallant said the industry is highly regulated, and his government is
working to ensure the product is safe.

The province is running a deficit this year of $192 million, with a
debt topping $14 billion. The current unemployment rate in New
Brunswick is 8.9 per cent.

The Atlantic Provinces Economic Council estimates annual provincial
revenue for the government from marijuana sales could be as much as
$78 million, including HST. By comparison, it says tobacco revenues
and the income from NB Liquor were $149 million and $172 million in
2015/2016, respectively.

And then there are the jobs.

"OrganiGram is planning to hire over 100 people as it gears up, and
it's over 200 at Zenabis in Atholville, so there's a few hundred jobs
plus right there," said Fred Bergman, senior policy analyst with APEC.

"It certainly has room to add GDP growth and add to employment. Will
New Brunswick be national leader and will those companies be national
leaders? I can't predict that," Bergman said.

Francine Landry, the minister for Opportunities New Brunswick, said
the province's plan - along with its proximity to Quebec, Prince
Edward Island and Nova Scotia, and shipping access to central Canada
and the United States - gives it a distinct competitive advantage.

"This strategic location, in conjunction with the burgeoning
technology and innovation sectors, can help position the province for
success in the cultivation, distribution and management of this new
market," she said.
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MAP posted-by: Matt