Economics 101 - "How monopolies work!"

Health Canada Marks Up Medical Marijuana 1,500%
Winnipeg Free Press
Monday, April 16, 2007
Page A3

ANDY CAISSE isn't impressed with the quality of the marijuana the federal government sells as part of a certified medical marijuana program.

The 39-year old Winnipegger who suffers from multiple sclerosis, said Sunday he uses marijuana as a pain reliever in place of morphine. But the marijuana grown in Flin Flon that he can buy through a federal program doesn't measure up to the standard he needs or that he could achieve if he grew the plant himself, Caisse added.

"The stuff that they have is garbage, plain and simple," he said. "They put in stalks, stems, seeds and everything. They ground it up to a fine powder so it's a useless pot."

Now, Caisse has learned he may have another reason to give government-certified marijuana the thumbs-down.

Newly released documents show the federal government charges patients 15 times more for certified medical marijuana than it pays to buy the weed in bulk from its official supplier.

Records obtained under the Access to Information Act show that Health Canada pays $328.75 for each kilogram of bulk medical marijuana produced by Prairie Plant Systems Inc.

The company has a $10.3 million contract with Health Canada, which expires at the end of Sepember, to grow standardized medical marijuana in an abandoned mine shaft in Flin Flon.

Health Canada, in turn, sells the marijuana to a small group of authorized users for $150 - plus GST - for each 30-gram bag of ground-up flowering tops, with a strength of up to 14 per cent THC, the main active ingredient. That works out to $5,000 for each kilogram, or a markup of more than 1,500 per cent.

Critics say it's unconscionable to charge that high a markup to some of the country's sickest citizens, who have little income and are often cut off from their medical marijuana supply when they can't pay their government dope bills.

"It's impossible for a person on disability," said Ron Lawrence, 38 a burn victim in Windsor, Ont., who needs medical marijuana to control severe pain. "The sickest people are the ones that need it the most . . . they're the ones who don't work."

Health Canada has become a reluctant marijuana supplier, forced into the role by a series of court decisions that have accepted scientific research indicating cannabis can relieve pain when other medications fail. The courts have also said patients should not be forced into the black market to purchase their medicine.

Currently, 1,742 patients are authorized by Health Canada to possess dried marijuana as a medication. Of these, 1,040 are licensed to grow their own, and another 167 people are licensed to grow marijuana for the exclusive use of licensed patients.

But patients can also order marijuana through Health Canada's official supplier, Prairie Plant Systems, which typically delivers the product by Purolator courier.

Currently, 149 patients are officially in arrears - almost a third of the 514 patients who order government-certified dope - collectively owing Health Canada $143,611 in outstanding payments. Many have been cut off from their supplies, though Health Canada was not able to indicate the number.

- Staff and CP