However, there is no question of investing public funds in recreational cannabis; most of the money will be spent on companies that are already developing or selling drug-grade products, drug ingredients or medical devices approved by Health Canada. We will also invest in research and development.
One of my goals is to revive or revitalize the life sciences in Quebec - an industry where we have lost some of our nobility
, "explains Pierre Fitzgibbon in an interview with Radio-Canada.
Since the legalization of cannabis in October 2018, the Quebec government has been reluctant to invest in this nascent industry. He is now ready to do it, but under a number of conditions.
Looking at the cannabis industry only in the context of economic development, I think that's a mistake
, says the Minister of the Economy and Innovation. He stresses the need to protect public health and safety
and emphasizes 100%
endorsement of his government's recently passed legislation to raise the age at 21 to buy and use cannabis.
He speaks of a targeted approach
where the State intervenes in a perspective of pharmacological research and medical innovation: Focus on the medicinal side, the medical side. We have research centers, we have universities, we are attractive, so let's focus on that. Let's put money in there substantially, if it's required, with the private sector. Me, I think we can pull out of the game.
Quebec also plans to invest in industrial hemp; for example, food ingredients, topical products and hemp dyes are among the innovations that will be eligible for financial assistance.
Outline of the Terms of Reference for Investments in the Cannabis Industry
Medicinal cannabis:
- Pharmaceutical grade products, ingredients for drugs, medical instruments;
- Research and development.
Industrial hemp:
- Pharmaceutical grade products, ingredients for drugs, medical instruments;
- Research and development;
- Unapproved medical products, oils, capsules, sprays, cosmetics;
- Ingredients and food products, products for topical use, concentrates, dyes.
The money required to finance these projects will be drawn from the equity already available to IQ and the MEI. Minister Fitzgibbon does not set a specific target for the amounts to be invested.
A delay assumed
He is not worried about Quebec falling behind other provinces in cannabis production. Currently, of the 258 growers, processors and sellers licensed by Health Canada across the country, fewer than 20 are based in Quebec.
There are sectors of industry like aeronautics where I want to be the world champion, I want Quebec to be number one in the world. Cannabis, I have a little discomfort. If you look at the number of licenses in Quebec, in Canada, the fourth province, I do not mind
, says Mr. Fitzgibbon.
He came into office a little over a year ago and has already met several industry players, but says he has not been convinced of the need to invest in recreational cannabis.
Recreational, we do not see why the government should get involved in this. Private money is available, we let the private do that. We as a government, as a catalyst, to promote innovation and research, we will focus on the more medicinal side.
In a context where many companies are both active in the recreation and medical sectors, the government warns that it will be vigilant in ensuring that the funds it invests are in the right place.
For recreational companies, I think it's too early. We'll see, maybe we'll change our minds, but for now, I'm very comfortable [...]. We have many other sectors in Quebec that are carriers, I think we have enough to focus
, says Minister Pierre Fitzgibbon.
Since the legalization of cannabis on October 17, 2018, many companies have complained of difficulties in obtaining funding for their projects. Even if the substance is legal, most banks are reluctant to get involved financially just like the large institutional investors in Quebec.