Legal cannabis credited with boosting tax and cutting criminals’ income in Canada – but Trudeau ‘reluctant to say so’

Government official hails increased safety and job creation

The legalisation of cannabis in Canada has created jobs and revenue, improved safety and reduced illegal sales, according to officials.

Six months after the law was changed on 17 October, the most obvious effect has been a rise in prices, according to the latest government statistics, possibly due to shortages in supply.

“Legalisation has gone well,” a government official told Reuters news agency, under cover of anonymity.

It is now safer to be a consumer because of regulation, the official said, adding that black market sales are falling and legal jobs and revenue are being created.

Illegal sales of the drug decreased to 79 per cent of the total sales by the end of 2018, compared to 90 per cent the previous quarter.

There has been no indication of major spikes in crime or public health problems, according to a report by CTV News, although this may not become apparent for several months. The latest official crime statistics available only cover up to 2017.

However prime minister Justin Trudeau and his Liberal party have not yet openly sought to take credit for the policy ahead of the federal election in October. The issue is not a “primary focus”, according to the unnamed official.

Polls show the Liberals either level or falling behind the rival Conservative Party, whose leader Andrew Scheer has expressed concerns about safety, particularly around people driving while under the influence of cannabis.

“Canadians are accepting of legalisation, but I don’t think they’re celebratory,” said Peter Donolo, a communications director for former Liberal prime minister Jean Chretien.

Some major licensed retailers have reported losses for the first three months after legalisation, mostly because of soaring costs offsetting increased sales.

Other retailers have reported difficulties in getting started, and shops only opened in the province of Ontario, which includes the capital, on 1 April.

Mr Trudeau recognised the supply shortage in an interview with the Canadian Press but said he expects it to be resolved “during the coming months”.

At cannabis stores in Ottawa close to parliament, customers and retailers expressed their approval of legalisation.

“I live close by and I’m excited to see how this store will change the neighbourhood,” said Jessica, 23, who declined to give her last name. “I did not vote Liberal last time, but I might this time.”

Cheralynn, 55, said the promise to legalise marijuana was one of the main reasons she voted for Trudeau in 2015. “And I like Justin,” she added. “Most women do. He’s kinda cute.”

Michael Paterson, a license holder at one shop, said: “We have a deep appreciation for the opportunity we’ve been granted.”

Spending on legal cannabis in Canada is expect to grow from $598m (£342m) in 2018 to $5.2bn (£3bn) in 2024, according to a report by Arcview Market Research.

Official statistics show 15 per cent of the population in Canada, including 19.4 per cent of men and 11.3 per cent of women, reported using cannabis during the last three months of 2018.

Additional reporting by Reuters