Ottawa bound: Canada's pot companies renew lobbying efforts
A small number of major players in Canada’s cannabis industry are stepping up to the plate to lobby the federal government as policymakers get set to review the country’s cannabis legislation.
A review of Canada's lobbyist registry shows that seven cannabis companies engaged with federal politicians last year alongside two industry associations that focused primarily on expanding the country's marijuana regulations.
Through lobbying, industries typically bend the ear of policymakers that help draft bills to create rules that would benefit them as much as possible, with cannabis being no different than energy or technology. However, the stakes this year have never been higher for the cannabis industry as Bill C-45, the law that legalized pot in Oct. 2018, is set for its mandated review, a process that is expected to take 18 months to complete.
"It's very clear that we're in the early days of the brand new policy space, not just new to Canada, but new to the world," said Rick Savone, who heads Aurora Cannabis Inc.'s government relations team, in an interview. "There's a lot of learning going on and there needs to be some adjustments as we move forward."
Canopy Growth Corp. led the pack with a total of 37 meetings with federal cabinet and ministerial officials, nearly half of which were conducted by third-party consultancy firm GT & Company Executive Advisors, the registry shows. Aurora Cannabis Inc. followed behind with 28 meetings, while High Tide Inc., Cronos Group Inc., Truss Beverages Inc., and Organigram Holdings Inc. all met with policymakers once last year.
Canopy used its lobbying efforts to focus on amending regulations that would ease limits on how many cannabis-infused beverages can be purchased in a single transaction, especially those products with lower potency levels. In a statement, a Canopy spokesperson told BNN Bloomberg they are committed to working with Health Canada to arrive at a solution that prioritizes consumer education and safety on cannabis drinks.
"The consumer uptake on this format has been slower than anticipated due to the treatment of cannabis-infused beverages under the equivalency calculations," said Sean Webster, head of Canopy's Canadian government and stakeholder relations. "We believe it is our obligation to advocate for regulatory amendments which will benefit the continued growth of the industry while supporting responsible and enjoyable experiences with cannabis."
George Smitherman, the chief executive officer of the Cannabis Council of Canada, told BNN Bloomberg that the 10 times he lobbied the government last year were aimed at building relationships to inform bureaucrats and politicians about the various issues that the industry wants to be addressed. Those include fixing excise tax payments to avoid overcharging producers, reverting to a national excise stamp system, and amending potency levels for edible products.
One of the challenges Smitherman faces is trying to nail down a single issue that the industry can work with policymakers on. He did note, however, that the excise tax issue is something that he plans to speak about alongside industry counterparts with officials from the Ministry of Finance on Friday. He plans to visit officials personally in Ottawa throughout the year to further advocate and influence them on cannabis-related matters.
"It's a multitude of issues, but I think some of them are really unifying," he said. "It doesn't matter what size of company you are, a 10 milligram [THC] limit on edibles is for a lot of people a serious concern and constraint to the prospects of actually winning over that category from the illicit marketplace."
While most lobbying efforts have focused on Health Canada given that's the department responsible for regulating the cannabis industry, some industry executives are looking to other areas of government to make their case known. One idea is to create an economic advisory panel under the purview of the Ministry of Industry that would provide the industry with a direct, and perhaps more appropriate, pathway for regulatory change.
Omar Khan, senior vice president of corporate and public affairs at pot retailer High Tide, recently met with officials from the Prime Minister's Office and members of the Official Opposition to advise Ottawa to take a broader economic lens when regulating cannabis in the future.
"When you talk to them and you let them know that the GDP contribution right now is comparable to auto manufacturing, or to life sciences or even to dairy, when you show them those statistics they're quite taken aback," Khan told BNN Bloomberg in an interview.
"I'm hopeful out of this latest round of meetings that we will be able to get some sort of movement, the proof will be in the pudding, but I'm cautiously optimistic at this point."
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