Thank you, Mr. Speaker. I would like to ask the Minister of Finance about the regulations for private sales that he has brought forward. I have taken a look at them, and the concerns I have heard from other people who are interested in a business: you need to sign a lease; you need a have a development permit; you need to have an extensive criminal background check; and this is all before you start the application process. These seem to be incredibly onerous and incredibly hard to get retail businesses off the ground. Does the Minister truly believe that this meets the goals of the standing committee's recommendations that privatization be an element of our cannabis regime? Thank you.
Masi. Minister of Finance.
Thank you, Mr. Speaker. Mr. Speaker, we want to be sure that those who are seriously interested are fully qualified candidates to be vendors of cannabis, so I believe it is a fair deal. Thank you, Mr. Speaker.
Quoting from the first part of the vendor designation section of the regulations, the Minister needs to be satisfied that "the operation of a cannabis store by the person would be economically viable."
The Minister is going to determine the market conditions before the market is allowed to determine those conditions. I don't know of any other business that is run this way or permitted this way. Can the Minister clarify what these regulations mean by economic viability of a potential applicant?
Much like with any business venture, the vendors would come forward with a business plan, and they would see whether there is a market for the product or not. Through the early work that we are doing, using the liquor store model, I think it would be a good determination of what type of market is out there.
One thing we don't want to see happen is those getting into the business thinking that it is a cash cow, when a lot of us know that it may not be. We just want to make sure that they know what they are getting into, and that it is a viable operation for them.
Earlier the Minister commented that the Liquor Commission has made $5,000 in the first hour of sales. It seems like a very viable operation. Again, why is the Minister putting a criterion that he needs to be the one to determine if the business is going to be successful before that business is allowed to exist?
Yes, the Member is correct. I did say that there was a good uptake at the beginning and made over $5,000 already, but it is now 14 hours into the legalization of cannabis. Maybe once the excitement wears off, the novelty wears off, or it is not the flavour of the day, there might be some changes, and it might get back to business as usual.
The Minister does make the final determination. I am not going to sit there and decide whether this business is viable; I would rely on the recommendations of those that would provide some technical and financial advice. I don't make the ultimate decision as to whether this business is going to go or not. I would listen to recommendations, like most good leaders do. I would listen to recommendations and make an informed decision based on that.
Masi. Oral questions. Member for Kam Lake.
Thank you, Mr. Speaker. I am certainly not questioning the Minister's judgement or the advice he receives from the quality staff in the public service. My question is: why are the regulations worded in a way that is putting -- I mean, the Minister is telling us now, Mr. Speaker, that he is not sure if this business is going to continue to boom or if it is going to go down. It doesn't sound like the Minister is aware of the economic viability of cannabis in the Northwest Territories. How are business owners or entrepreneurs who look at these regulations given comfort that the Minister is not going to say no because he is worried about them failing? Let the market decide. Thank you, Mr. Speaker.
That is exactly what we are trying to do. Thank you.
