Ontario bails on government-run pot stores, to sell weed exclusively online until April 2019

Marijuana and monopoly don’t mix.  At least not in Doug Ford’s Ontario.

In stark contrast to the previous Liberal plan, the Ford government announced on Monday that it would be moving forward with a private retail store model.

But it won’t be ready on October 17, when marijuana officially becomes legal across Canada.

Instead, sales will commence on October 17 through government-run Ontario Cannabis Store (OCS) websites, to be followed by a private retail store model on April 1, 2019.

In between, the government said it would consult with municipalities and law enforcement on how to best roll out a “tightly-regulated private retail model,” before introducing the legislation outlining the rules surrounding private sales.

“This pause in implementation is important,” Minister of Finance Vic Fedeli said from Queen’s Park on Monday. “The system marks a significant departure from the previous government. We have to get this right and we will not be rushed.”

Fedeli said the extra time would also give the province time to learn from other provinces that have embraced a private model, like Manitoba, Saskatchewan, and Alberta.

The government will also empower municipalities to opt out of the private sale model, and provide $40 million over two years to help municipalities with costs related to legalization.

It’s not yet clear how many private stores will open in Ontario.

Before being blasted out of power on election night, Kathleen Wynne’s Liberals sought to roll out 150 OCS stores by 2020, with 40 to open in the first year. The stores would have been run by the Liquor Control Board of Ontario (LCBO).

That won’t be the case when Ontarians purchase marijuana at a brick-and-mortar store. Under the new model, the OCS will be the wholesaler providing product to private retailers, but it won’t be selling marijuana outside of the online model.

“The Government of Ontario will not be in the business of running physical cannabis stores,” Minister Fedeli said in a release. “Instead, we will work with private sector businesses to build a safe, reliable retail system that will divert sales away from the illegal market.”

Premier Ford hinted that he was open to a private model in late July when he said he didn’t believe the “government should stick their nose into everything.”

Watch the full press conference below.

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