The majority of cannabis revenue will be given to provinces and territories.
On Monday, Finance Minister Bill Morneau met with his counterparts across the country where he announced that 75 per cent of revenue would go to provinces and territories – down from the original 50-50 split.
“It’s unacceptable to provinces,” said Joe Ceci, Alberta’s Finance Minister, in a teleconference with reporters.
“Alberta’s been clear from the beginning that such a split would not work for us – other provinces joined us on that.”
Ceci says the federal government is expecting to see around $400 million worth of revenue in the first year, capping their share at $100 million with any surplus being split between provinces and territories.
He notes the revenue raised will be used to help cover costs the province is expecting to see.
“Provinces will bare the responsibility of the regulations, the risks, the infrastructure to proceed with this federal initiative.”
“We will do the hard work to protect the children and youth in our communities, what we won’t do is flip the bill.”
Ceci adds the province isn’t going to rely on cannabis to be a “revenue generator.”
In the meeting, other details about cannabis were also discussed including the price of a gram across the country.
While there is no set price right now, the plan is to sell marijuana for around $10.00 a gram.
“It will roughly be the same across the country so we don’t see people moving across borders to purchase cannabis differently from their home province,” said Ceci.
The Federal Government says legalization is expected to happen on July 1, 2018.