Government Subsidizing Big Cannabis at Expense of its People, Say Opposition

Article by Meghan McCabe, CBC News

Nfld. & Labrador Government subsidizing big cannabis at expense of its people, say opposition Social Sharing Third deal involves shareholder married to president of Liberal Party Meghan McCabe · CBC News Atlantic Cultivation broke ground on its new cannabis production facility on Kenmount Road in St. John's on Thursday. (Auxly Cannabis Group/Twitter) NDP MHA Jim Dinn says the government is subsidizing big corporations at the expense of local companies. (Mark Quinn/CBC) PC MHA Lloyd Parrott says the government is choosing its friends to benefit from cannabis production and supply deals. (Mark Quinn/CBC) Tourism, Culture Industry and Innovation Minister Christopher Mitchelmore says there is no request for proposals process for these cannabis production and supply deals. (CBC)

Opposition MHAs are criticizing what they call more subsidies to a company with Liberal ties, on the heels of the province’s third major deal to grow and sell cannabis locally.

“It’s yet another example of government subsidizing large corporations at the expense of the citizens of Newfoundland and Labrador,” said Jim Dinn, NDP MHA for St. John’s Centre.

St. John’s-based Atlantic Cultivation, in partnership with B.C.-based Auxly Cannabis Group, has a deal to supply cannabis, build a $37-million cannabis production facility in St. John’s, and operate five new retail stores — promising hundreds of jobs as well.

The company “will be eligible for reduced monthly remittances to the Newfoundland and Labrador Liquor Corporation on sales of its cannabis old in the province, up to the confirmed eligible expenditures of up to $37 million for 10 years, which is related to the construction cost of the production facility,” a spokesperson for the Department of Tourism, Culture and Innovation said in an email Thursday afternoon.

Dinn said the government is giving “large, shiny corporations” an advantage, because other large companies — like beer producers or local independent cannabis companies — “don’t get these deals to kick start their operations.”

“Bit worrisome I guess. It’s the third one, in recent memory, totalling $130 million,” said Lloyd Parrott, PC MHA for Terra Nova and critic for the department, of the deal.

This latest deal follows the same model for cannabis production and sales with Biome Grow, which can keep up to $52 million, and Canopy Growth, which can keep up to $40 million.

“You’re looking at $130 million taken out of the provincial economy that could be used for other services, for education, health care, our seniors,” Dinn said, with Parrott echoing that sentiment.

Where’s the RFP?

In this deal, the government was clear that Tom Collingwood Sr., Cynthia Crosbie, and Christopher Hickman of Marco Group — which appears to be involved in the construction of the new facility — are the three shareholders of Atlantic Cultivation.

Crosbie is married to John Allan, the president of the Liberal Party, and is a cousin of PC leader Ches Crosbie.

“You know the old adage, you can’t pick and choose your family, and obviously she’s married to the president of the Liberal Party. We wish her luck as an individual, and it has no bearing on our leader,” said Parrott.

Read the full article here.

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