Mahsi, Mr. Speaker. Impacts of the liquor commission model on small communities. Many witnesses raised concerns that neither the potential side effects of the GNWT's proposed liquor commission model nor the unique needs of small communities were appropriately reflected in the bill. Under the proposed model, cannabis would be available in up to seven liquor stores in just six of 33 communities, provided that the owners of these private businesses, who currently sell GNWT-owned alcohol on consignment from the Liquor Commission, agree to sell cannabis. This would leave the majority of NWT communities, including all the small communities, reliant on a mail-order system. As proposed, this system would also operate through the Liquor Commission.
In smaller communities, residents travelling to larger centres to shop will often shop on behalf of neighbours and friends, as well. In Fort Liard, we heard that if residents' only alternative was mail-order, the proximity of Fort Nelson, BC, would ensure that most residents would travel there by car to purchase cannabis and that possession limits would likely not inhibit them from buying for as many legal purchasers as possible. Many residents expressed the view that the mail-order system is too restrictive, which could also encourage cannabis bootlegging. We heard repeatedly that in order to minimize bootlegging and encourage people to buy legal cannabis, cannabis should be cheap and plentiful. Mr. Jason Perrino wrote, "I want to see the illegal market cease to exist. New legislation and regulations can't be so restrictive that [people] continue to buy from dealers."
Residents also identified the challenges posed by limited job opportunities in smaller communities, coupled with expensive necessities (food, fuel, et cetera). Other witnesses noted that many residents have a strong desire to work and would welcome the jobs that could be created by cannabis sales in smaller communities. This absence of legitimate jobs is also seen as a factor contributing to bootlegging alcohol and dealing in illicit drugs. During a hearing at the Hay River Reserve, Mr. Jeffery Fabian said, "Bootleggers are feeding their own families with bootlegging. Food is expensive."
Again, Motion 3 and Recommendation 6 addressed this matter.
Record Suspension
We heard that criminal records related to cannabis are a barrier to employment, education, and travel opportunities. Mr. Amos Cardinal of the Hay River Reserve observed that living with a criminal record is like "dragging a big pile of garbage behind you." This burden is compounded by the expense associated with obtaining a record suspension; the Parole Board of Canada charges $631 to process an application, and we heard that this cost is often an insurmountable obstacle for those who would otherwise be eligible. Several witnesses asked if record suspension for cannabis-related offences, administered through the Government of Canada, would be more readily available after legalization.
Recommendation 5 addresses this matter.
Revenues and Taxation
According to the Government of Canada, the "provinces and territories will work with municipalities towards legalization." However, during the consultation, we heard from the Northwest Territories Association of Communities. The association wrote that they:
"Have requested a municipal share of the revenue and have received an irrevocable no. While we respect that the revenues will be low for our territory and that communities are not responsible for policing in our jurisdiction, communities are currently underfunded to the tune of 37 per cent. They should not be expected to absorb these additional costs. The federal government increased the provincial/territorial share from 50 to 75 per cent so that it could be passed on to communities. Some jurisdictions in Canada have already announced they will be passing on 40 per cent of revenues to communities as well as providing training to all appropriate staff."
We heard concerns that, if government raises the price of cannabis too high, people will continue to buy it from the illicit dealers they already do business with. We also heard support for tax rates for cannabis products based on the concentration of THC, with high-concentration products subject to a higher tax rate. Several submissions suggested that cannabis revenues be targeted to public awareness and education campaigns. It was also suggested that pricing should be used to control youth access by making cannabis an expensive luxury.
Further, in nearly every community we visited, we heard recommendations to dedicate cannabis revenue to related public education and public health initiatives.
Recommendation 7 addresses this matter.
Public Education
Public education was discussed in every community we visited. Witnesses were interested in learning more about the bill itself, relevant health information, and federal rules for commercial cannabis production. We heard questions on cannabis "pros and cons," second-hand smoke, different types of cannabis products, the suppliers the GNWT intends to engage, options for plebiscites, school curricula, impacts on youth brain development and general human health, and more. We also heard recommendations for cannabis-specific training for community health nurses and youth workers, door-to-door information campaigns, and information delivery in Indigenous languages. Ms. Pauline Roche said, "Marijuana is here already. The GNWT has to put resources in schools and teach our kids." Mr. Jeff Norn recommended "tailored education [initiatives]" designed for a broad demographic: not only youth, but also elders, parents, law enforcement, et cetera.
These questions and comments tell us that Northerners are keen to understand cannabis legalization and its likely impacts on their communities. They also tell us that the GNWT has not clearly communicated its intentions for cannabis regulation. In Fort McPherson, Mr. Taig Connell asked, "How will legalization benefit the NWT? Will it create jobs, promote healthy programs? Who wins?" Effective public education is necessary to mitigate the risks posed by incorrect information, fears, or misconceptions about cannabis.
Recommendations 1 and 2 address this matter.
Mr. Speaker, I would like to turn the reading of this report over to the Member for Hay River North.