The need for weed: Business federation wants NLC to stay out of marijuana business

The provincial wing of the Canadian Federation of Independent Business has its eye on marijuana legalization next summer, and it wants the Newfoundland and Labrador Liquor Corporation to stay in its own lane.

Vaughn Hammond, director of provincial affairs for the Newfoundland and Labrador branch of the federation, told CBC's On the Go Tuesday that the NLC should leave marijuana retailing up to the private sector.

The provincial government's role is to develop and maintain and enforce regulations, and the private sector should be the ones involved in the retail of cannabis.- Vaughn Hammond

Hammond said the NLC, as a provincial corporation, is already in a conflict of interest as the government both sets the rules on alcohol retailing, and does the retailing itself, a model he doesn't want to see anywhere near marijuana.

"They're the ones that are enforcing the regulations on themselves, essentially, as retailers," he said.

"They determine who sells it, they determine when it's sold, what's sold, that kind of thing. So if they're the ones that are enforcing regulations, we feel that it should be rather separated. The provincial government's role is to develop and maintain and enforce regulations, and the private sector shouldbe the ones involved in the retail of cannabis once it's legalized next year."

The private sector is more aligned with what the market will need and have a greater reach than a government body, said Hammond, who said private competition would be more effective at eliminating the underground marijuana economy than a government monopoly.

"In our fiscal situation right now,are we going to invest a bunch of money in something that may not alleviate any of the pressure [that] is going to be faced [from] the underground economy once it's legalized in July, or should we let the private sector invest their money, and make it work in terms of recognizing that there may be some sort of underground economy but we have to reduce it as much as possible."