Ottawa and First Nations discuss cannabis

Bill Blair, Minister of Organized Crime Reduction, has held several meetings in recent months, including a teleconference last Thursday, to explore the possibility of a cannabis plan that could eventually require legislative change.

First Nations are currently excluded from the cannabis legalization regime and the sharing of revenues generated. The Cannabis Act gives control of distribution and retailing to provincial and territorial governments, while Health Canada oversees the registration of commercial production.

Provinces and territories also receive 75% of the federal excise tax. The rest goes to Ottawa.

"They left us behind when they started down this path," said Christian Sinclair, leader of the Opaskwayak Cree Nation, who participated in the discussions.

Located about 500 kilometers northwest of Winnipeg, the Opaskwayak Nation focused early on the cannabis industry. She is a major investor in National Access Cannabis and her chain of retailers Meta Cannabis.

This plan will have to reflect the rules that govern the industry at the federal, provincial and territorial levels, says Isadore Day, CEO of Bimaadzwin, a consulting firm that focuses on First Nations.

"What the First Nations framework seeks to create is a parallel path," he says. The regulatory regime would be controlled by First Nations, from licensing to clinical trials to traceability and revenue sharing, says the former regional chief for Ontario.

Minister Blair's office has indicated by email that the federal government will continue to "get involved nation-to-nation" with aboriginal communities on the issue of cannabis. It adds that Ottawa is ready to move "bilaterally" if some provinces or territories are reluctant to participate.

Trudeau's part

At meetings, Mr. Blair assured First Nations leaders that the Prime Minister's Office is handling the file.

"Both parties recognize that this is a complex situation, but there is no reason not to solve it," the minister told Aboriginal leaders at a July 16 meeting in Ottawa. , according to meeting notes provided to CBC News.

"The Prime Minister has been very clear that he wants it to be nation-to-nation," he added.

For Isadore Day, it is clear that the legislative element of the plan, if it materializes, will not make its way into the House until after the October election. This does not prevent him from wishing to obtain from now on a form of written commitment. Discussions on this subject are expected shortly with senior Health Canada officials, he says.

"If we can put this on the table with the officials before the election, we will be able to move the issue forward," he believes.

"I want to be part of the economy"

The Assembly of First Nations (AFN) passed three resolutions on cannabis at its annual general meeting in July. One of them asks Ottawa to "recognize First Nations jurisdiction over all aspects of growing, processing and retailing cannabis in their territory".

The resolution also calls for the development of a framework with Canada. The AFN is not conducting the ongoing talks, but its leader Perry Bellegarde is still involved in some of the discussions.

In several nations – including Tyendinaga, Pikwakanagan and Alderville in Ontario, and Kanesatake in Quebec – shops sell cannabis and thrive in business without being subject to provincial and federal rules.

This "gray market" puts some band councils in a difficult situation, says Manny Jules, Chief Commissioner of the First Nations Tax Commission, who is also participating in the talks.

"We can not tolerate what's going on right now. I want us to be part of the economy and that requires legislation, "he says.

Opaskwayak Nation Chief Christian Sinclair agrees. He believes that all First Nations should benefit and that the only way to maximize the potential of the cannabis industry for communities is to create an exclusive area of ​​jurisdiction.

This framework, he explains, would ensure that cannabis revenues remain within First Nations. "Everything is already in place, First Nations are already involved in every step of the supply chain," he says.

75% like the others

The First Nations Fiscal Management Act is what could provide a solid administrative and financial basis for this new regulatory framework, says Sinclair.

Passed in 2005, this legislation created the First Nations Financial Management Board, the First Nations Finance Authority and the First Nations Tax Commission. The three institutions support First Nations on issues ranging from taxation to tax issues to the raising of private capital through bonds.

First Nations should also retain 75% to 100% of the revenues generated by the federal excise tax or consumption taxes from the sale of cannabis on their territories, insists Mr. Jules.

He adds that these revenues could become the basis of a new type of equalization.

"What I'm proposing to do with the excise tax is to use it as First Nations funding so we can help communities that do not have the benefit of being near an urban center. He proposes.

The leader of the First Nations Tax Commission therefore invites all federal parties to include in their election platform the creation of this legislative framework.

According to a text by Jorge Barrera, CBC News