Walters warns against BMCLA partnership

There is a warning that any partnership between the Barbados Medicinal Cannabis Licensing Authority (BMCLA) and the Barbados Trust Fund Limited (BTFL) will seriously disadvantage entrepreneurs hoping to start or get support for their small business.

Democratic Labour Party spokesperson for small business and entrepreneurship Ryan Walters said these funds, intended to support micro and small business should not be used to “prop up seemingly larger businesses which fall outside the Fund’s original mandate”.

During a recent Open Day at its Wildey headquarters, communications and public education specialist Tracy Moore said BMCLA had a 60-40 plan in place with the Trust Fund, which would provide 60 per cent of financing.

Walters, the Democratic Labour Party candidate for St Michael North West cautioned BTFL against entering into a partnership with the entity.

“It is no secret that the BMCLA has failed to get off the ground amidst the millions of taxpayers’ dollars being poured into its operations. Government officials and executives at the BMCLA have identified a major issue; that being the inability of its clients to access banking services through financial institutions,” he said in a statement.

“It’s been four years since its establishment yet there is no marked progress that this industry will bear fruit in the near future although the Government continues to pour millions of taxpayers’ dollars into it to primarily support administrative efforts.”

On the floor of the House of Assembly this month, Opposition Leader Ralph Thorne also raised concerns about the medical marijuana industry.

“Millions of dollars have been spent on this project and what do we have to show for it? Not a single blade of marijuana grown. Meanwhile, lands originally designated for marijuana cultivation remain idle,” Thorne said.

Walters reminded BTFL was set up to help small and micro business, with an initial disbursement of $5 000 that could potentially double based on the relationship with the client.

“How then do you justify providing financing for clients of the BMCLA whose applications fees alone are close to the said $5 000, while licence fees start from around $29 000 and can go all the way to almost $1 000 000 depending on the licence?” Walters asked.

“These businesses definitely fall squarely outside the profile of a small business. The medicinal cannabis industry was never designed for a small business owner.”

He asked if Trust Loan Fund had the capital to support the level of funding required by BMCLA and whether small/micro businesses could “lose out because Government has shifted the focus to finance larger businesses”. ( SAT/PR)

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