Recreational marijuana sales get green light in Canada, as report endorses legalisation plans

Canada got a green light to sell recreational marijuana through a range of retail outlets from an expert panel, whose report boosts the nascent cannabis industry as the country moves toward legalising the drug.

The Task Force on Cannabis Legalisation and Regulation issued a report that recommends the Canadian government regulate the production of marijuana while the provinces control distribution and retail sales, including through dedicated storefronts with well-trained staff and access with a direct to consumer mail-order system. The market should “encourage a diverse, competitive market that also includes small producers” and set tax rates that balance public health damages from drug use with the need to reduce criminal production of weed.

Prime Minister Justin Trudeau’s government commissioned the report as it prepares to legalise and regulate recreational use of the drug, which would be a first among Group of Seven nations, with legislation promised by early next year. The plan has fueled a surge in Canada’s marijuana stocks in anticipation of billions of dollars of legitimate revenue.

The report provides clarity to companies and struck a balance between protecting from potential abuse - such as mixing with alcohol and its use by minors - and allowing people to access the drug, Shea said.

Maintaining Canada’s current mail-order medical cannabis delivery system and also giving access to recreational consumers will ensure equality across the country and have zero impact on communities, said Cam Battley, executive vice-president at Aurora Cannabis. The move would be a big step in chipping away at the country’s illegal market and is something that can be done very rapidly, he added.

“I think there’s a lot of good stuff in here and it’s broadly positive,” Battley said by phone.

The government is trying to make sure all sales go through a proper channel and pharmacies will probably be another potential retail outlet, Canopy Chief Executive Officer Bruce Linton said in an interview on Bloomberg TV Canada.