Pubdate: Mon, 13 Nov 2017
Source: Niagara Falls Review, The (CN ON)
Copyright: 2017 Niagara Falls Review
Contact: http://www.niagarafallsreview.ca/letters
Website: http://www.niagarafallsreview.ca
Details: http://www.mapinc.org/media/2907
Author: Ray Spiteri
Page: A1

FALLS WANTS POT SHOP RUN BY PROVINCE

Wayne Thomson hopes his fellow city councillors will support a
resolution he plans to bring forward at a Nov. 28 meeting calling on
the province to set up a pot shop in Niagara Falls.

"That would increase our visitation substantially, create all kinds of
jobs, and really be an economic opportunity for us," said the veteran
politician and chairman of Niagara Falls Tourism.

The Liquor Control Board of Ontario, which will run new marijuana
stores through a subsidiary, recently announced the first 14 cities
where legal pot shops will be located when recreational marijuana
becomes legal next July.

Niagara Falls, which welcomes an estimated 14 million visitors
annually, wasn't among them, with the closest city being Hamilton.

Being omitted from the list was a surprise to Thomson and Niagara
Falls Mayor Jim Diodati, who said the Honeymoon Capital is home to
some of the busiest liquor stores in the province.

The initial list of cities includes Barrie, Brampton, Hamilton,
Kingston, Kitchener, London, Mississauga, Ottawa, Sault Ste. Marie,
Sudbury, Thunder Bay, Toronto, Vaughan and Windsor.

"You look at what's happened in the states where it's been legalized,
the influx (of visitors) and the tourism and the business opportunity
is unbelievable," said Thomson.

"Here we have a border community which doesn't have this opportunity
across the border (in Niagara Falls, N.Y.). They'd be flooding over
here, and business wise, this would be so good for the province, so
good for the city, jobs and opportunities and business promotion and
marketing as a result of that would be unbelievable."

After addressing delegates at the Ontario Economic Summit in
Niagara-on-the-Lake Friday, Premier Kathleen Wynne told the Niagara
Falls Review the first 14 municipalities don't make up the full list
of where the first 40 stores are going to be.

"It's certainly not the full list of the 80 of 150 stores, but my
understanding is that there will be other municipalities that will be
added to that list even for the first 40 stores."

Asked if she anticipates Niagara Falls to be one of them, Wynne said:
"I don't know. (The LCBO is) making these decisions based on the
business metrics that they use to locate stores around the province."

The LCBO, along with staff with the Ontario Ministry of Finance, will
meet with representatives of the 14 cities to discuss exact locations
for the stores.

The province previously announced that as many as 40 stores would open
next year, with 40 more added a year later.

The province said it will identify more locations for its first batch
of 40 stores in the coming weeks, but notes that all consumers will be
able to access cannabis through an online retail website.

The province plans to set up approximately 150 standalone cannabis
stores by 2020.

During a news conference in Niagara Friday, Wynne was also asked about
a proposed federal tax scheme that would add an excise tax of $1 per
gram, or 10 per cent of the final retail retail price, whichever is
higher, with the revenues to be divided equally between Ottawa and the
provinces.

The plan will be available for public comment until Dec.
7.

GST will be also be applied, so if the retail price of a single gram
of pot is $8, consumers would pay a $1 excise tax and $1.17 in GST for
a total of $10.17.

The taxes would be levied on both fresh and dried marijuana,
potinfused oils and seeds and seedlings used for home
cultivation.

The 50-50 tax revenue split idea has rankled some premiers who say
their governments have to do the bulk of the heavy lifting on
legalization, including policing, distributing and regulating the sale
of marijuana.

Asked how much provincial tax dollars she would like to see on one
gram of recreational marijuana when it's legalized, Wynne did not
directly answer.

"Our principles are that we need to protect young people, we need to
have a safe and responsible regime here in Ontario, and we need to
tackle the underground economy, the black market," she said.

"Any tax regime that's put in place has to recognize that there has to
be a balance of cost because of our need to undermine the black
market, and secondly that the burden of expense is going to be felt at
the provincial and the municipal level."

Wynne said when she met with her colleague premiers and the federal
finance minister at the first ministers meeting a number of weeks ago,
they made it "very clear" the proposal for a $1, 50-50 tax revenue
split idea "wasn't going to work" for provinces because it's the
provinces and the municipalities that are incurring the costs.

"There's going to have to be a lot more discussion about what that tax
regime would look like."
- ---
MAP posted-by: Matt