The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A former DNA leader, who made medical marijuana and its legalisation a core campaign issue in the 2017 general election, yesterday said Bahamian ownership stipulations “sound reasonable” and urged: “Let’s get on with it.”

Branville McCartney, recalling how he and the Democratic National Alliance (DNA) were accused at the time of “wanting people to smoke dope”, told Tribune Business that The Bahamas “needs to take a page out of Canada’s playbook” and emulate the “billion dollar industry” that country has created from medical marijuana.

Speaking after the Davis administration unveiled its comprehensive package of legislative reforms, focused on legalising medical marijuana and the creation of a regulatory and licensing regime to oversee its use, he added that he was “fine” with the Government’s decision not to do likewise with industrial hemp for the moment and added: “One step at a time.”

The proposed Cannabis Bill 2023 lays out the Bahamian ownership requirements, and restrictions/limitations on foreign investment and involvement, in various sectors of a medical marijuana industry. Corporate entities seeking a licence for the cultivation, retail, transport or religious use of marijuana must be fully or 100 percent Bahamian owned. This aligns with the National Investment Policy, which permits Bahamian ownership only in sectors such as retail and transport.

Foreign investment, ownership and participation, though, will be permitted when “applying for an analytical testing licence, manufacturing licence or research licence”, but there must be at least a 30 percent Bahamian equity ownership interest in the entity involved (see other articles on Page 22B).

“Under the proposed regime, cannabis will only be legally accessible for medical, scientific or religious purposes,” the Bill’s “objects and reasons” section added. Cultivation is defined as “the growing, harvesting, drying, trimming, curing and packaging of cannabis”, while a retail licence will be needed for the operation of “a cannabis dispensary and therapeutic facility” plus the sale of marijuana and associated accessories for legal purposes.

Offering initial support for these Bahamian ownership requirements, Mr McCartney told Tribune Business: “That sounds reasonable, unlike putting in stipulations that are unattainable for the average person to participate. That sounds reasonable in that regard. That sounds reasonable.

“We want to see Bahamians having an opportunity, not an unreasonable opportunity, in terms of owning or being part of the industry. We want something where the average man on the street can have opportunities to participate in the industry. I hope they move forward with it sooner rather than later. We’ve had a number of significant Bills, like the Freedom of Information Act, which have been around for some time and not come into effect yet. I hope this doesn’t fall into that category.”

The Bill’s Bahamian ownership provisions mark a nuanced change from what was suggested by the Minnis administration’s National Commission on Marijuana report in August 2021. “The creation of a cannabis industry, for medicinal and/or recreational purposes, must provide opportunities for all Bahamians to get involved, and at all levels, including ownership of the major components of the system,” it urged.

“The cost of operating a cannabis business is expensive. It is appreciated, therefore, that the average Bahamian may not have the resources to fully participate in the industry. It is imperative that safeguards are put in place that will encourage Bahamians to partner with foreign investors at a ratio that is mutually beneficial. It is proposed that any company formed must be at least 51 percent Bahamian-owned, with no more than 49 percent of the shares being owned by non-Bahamians.”

Mr McCartney, eyeing the industry’s economic potential, said: “I think we need to take a page out of Canada’s book where this is a billion dollar industry. Certainly, had we started to work on this being an industry when COVID hit, I think the country would be in a better position financially to deal with it.

“I would encourage the Government to take a leaf out of Canada’s playbook when it comes to the legalisation of marijuana. We certainly don’t need to reinvent the wheel. We just need to make it applicable to our jurisdiction. I think the impact will be significant.

“I don’t have the dollar figure, but certainly it would be an enhancement to our economy. It would provide, I think, a significant amount of jobs and investment directly and indirectly as a result of the industry. I think it’s something we move forward with post-haste.”

The Government yesterday said the current reforms are only focused on medical marijuana, not industrial hemp, which may be legalised at a later date. Dr Michael Darville, minister of health, explained that the Government will be “making a big mistake” if it legalises Indian hemp and medicinal marijuana at the same time. He cited the former’s psychotropic dangers, and high concentration of THC (tetrahydrocannabinol) and CBD (cannabidiol).

Mr McCartney said he had no problem with this strategy, adding: “One step at a time. Fine. That’s our culture, but we’ve moving in the right direction in that regard. One step at a time. If we get to that stage, fine, but medical marijuana is a significant move in the right direction.”

The National Commission on Marijuana, in its report, said the “potential exists for a sustainable industry” for both medical marijuana and industrial hemp with both needing to be explored. However, given that studies have shown the plants for both cannot co-exist, separate islands and regions of The Bahamas will have to be “zoned” for one type or the other as they cannot cross-pollinate.

“Cannabis for the hemp industry would require a different strain or species of the plant,” the Commission said. “The plant used for industrial hemp is traditionally high in CBD. There are many uses for hemp-based products in the general population, from hempcrete (a construction material) to clothing and hardware such as ropes and other building materials.

“Looking at the global trends, however, it is not expected that there will be an explosion of products into the industrial hemp market. This is because the prohibition on industrial hemp has been lifted for much of the world. Hemp clothing is available, but not in large quantities. The same applies for other hardware hemp that can be and is being produced.

“What is observed is an explosion in the health and recreational uses of hemp-derived CBD and products. Products range from every aspect of the consumer experience: Smokable products, as well as edible, topical and pet wellness products,” it added.

“The absence of explosion of the hemp industry compared to the production of cannabis products for human consumption may be attributed to the initial start-up costs for production of the hemp products, coupled with a low market demand. This, therefore, does not make production a priority for businesses operating in this space. On the other hand, the costs to set up operations designed to cultivate and extract for human consumption are far more cost effective with a much higher return on investment.”

Mr McCartney, meanwhile, recalled how the DNA’s billboards advocating for medical marijuana’s legalisation were torn down in some instances during the 2017 election campaign. “I am curious to know what caused the change of mind for these politicians, both FNM and PLP, to move forward,” he said. “It’s about time.

“It’s something that we campaigned on in 2016-2017, and it’s quite funny. Politics is a very serious thing. We got a lot of negative feedback from persons when we campaigned on it, even to the extent where persons broke down our billboards. They said we wanted people to smoke dope. How silly, how silly. This is something the country should have done a long time ago. It is ultimately for the benefit of the country. It’s about time. Let’s get on with it.”