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Pot license lottery due to low supply: Miller

The low number of private pot sales licenses has to do with supply.

That is the word from Parry Sound-Muskoka MPP Norm Miller when he was asked about the government’s pending lottery that will issue just 25 licenses total for private marijuana sales starting in spring 2019.

“In an ideal world anyone who wanted to open one that was approved would be open at one time,” admits Miller. “But there is a shortage of actual  cannabis so it really wouldn’t be fair to issue a whole bunch of licenses to people and have them make the investment in a store and then have no stock.”

He says he wished the system wasn’t this way and lays the problem at the feet of the federal government.

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“It’s totally a decision because there isn’t enough supply which this is the responsibility of the federal government,” says Miller.

The main concern, he says, is with a low supply, consumers may return to the black market.

“The idea is to have private stores wherever municipalities want them and in sufficient numbers so there is availability to combat the illegal market,” explains Miller.

Potential pot store owners are being encouraged to apply between January 7th and 9th for one of the licenses. A lottery on January 11th will reveal the winning licensees allowing them to plan for an April 1st opening.

What is compounding the confusion of this type of system is that municipalities have until January 22nd to decide if they will allow retail cannabis sales in their jurisdiction. This means if you are planning to operate a business applying for a license in a town that has yet to make the decision is part of the risk/reward system.

Huntsville has said it will allow private retail pot sales, but Bracebridge, Gravenhurst and Muskoka Lakes have all yet to deal with the question.

Miller is hopeful that one local grower in Bracebridge is able to get a license sooner rather than later.

“Locally we have a big producer,” Miller points out. “Muskoka Grown, I know they would like to have a retail outlet near where they produce. I know they have plans for a store and education centre.

“The good news is whatever they produce they can sell right away.”

Miller says the lottery system of getting the retail license will likely only need to be in place until the supply chain has stabilized.

“I’m sure as supply gets greater then more licenses will be issued,” says Miller.

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