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As of last June, more than two years after New York legalized recreational marijuana, just 12 state-licensed dispensaries had opened for business, falling far short of Gov. Kathy Hochul’s prediction that more than 100 would be operating by that summer. Six months later, Hochul was bragging that “nearly 40 adult-use dispensaries will have opened in 2023.” The current count is 87. Those stores, The New York Times notes, “are far outnumbered by more than 2,000rogue head shops, the target of complaints that they siphon customers,sell to childrenandattract criminals.”

New York’s rollout of marijuana legalization has been a “disaster,” as Hochul conceded in January. “Every other storefront” is an unlicensed pot shop, she told The Buffalo News. “It’s insane.”

That disaster has frustrated would-be retailers, left farmers in the lurch, played havoc with tax revenue projections, and made a joke out of any expectation that New York, by learning from the experienceof states that legalized marijuana earlier, would do a better job of displacing the black market.The insanity that Hochul perceives is a product of bad decisions by politicians who should have known better and obstruction by regulators who sacrificed efficiency on the altar of diversity.

Unlike states such as New Jersey, where voters approved legalization in 2020, and Maryland, where a similar ballot initiative passed two years later, New York did not initially allow existing medical dispensaries to start serving the recreational market. Its slow and complicated licensing process, which was skewed by an “equity” program that prioritized approval of applicants with marijuana-related criminal records or their relatives, is maddeningly hard to navigate.

Those preferences invited lawsuits by people who were excluded, which further delayed approval of licenses. Guidance and financial help for people struggling to jump through the state’s hoops never materialized. And as in other states, high taxes and burdensome regulations have made it hard for licensed businesses to compete with unauthorized dealers.

TheTimes story, which opens with the stark numerical contrast between those two categories of marijuana suppliers, later takes a stab at a more positive spin: “New York now has more licensed recreational dispensaries than any state on the East Coast except Massachusetts.” But even that is not true.

Maine, where voters approved legalization in 2016, has 139 recreational dispensaries, serving a population less than a tenth as big as New York’s. New Jersey, with a population less than half as big as New York’s, has 101 recreational dispensaries two years after legal sales began.

Connecticut, which legalized recreational marijuana the same year as New York, has 28 dispensaries serving that marketnearly twice as many per capita. Maryland, which legalized marijuana in 2022, has 101 dispensaries that serve recreational consumers as well as patients. Maryland’s population is less than one-third the size of New York’s. Even tiny Rhode Islandwhich has a population one-twentieth as big as New York’s, legalized marijuana a year later, and has just half a dozen recreational dispensariesstill has more per capita.

New York’s population is almost three times as big as the population of Massachusetts, where legal recreational sales began in November 2018. Massachusetts has nearly 400 licensed dispensaries. That’s roughly six authorized retailers per 100,000 residents, compared to about 0.4 per 100,000 in New York.

If you consider the situation in other regions of the country, New York’s pitiful number of licensed dispensaries looks even worse. Colorado, where the first recreational outlets opened in 2014, now has 670, or about 11 per 100,000 residents. Oregon, where legal recreational sales began the same year, has more than 800 licensed outlets, about 19 per 100,000 Oregonians.

Both of those states, of course, had a jump on New York, approving legalization in 2012 and 2014, respectively. But New Mexico legalized recreational marijuana the same year as New York, and it has more than 1,000 dispensaries, serving a population one-tenth as big as New York’s.

Any way you cut it, New York has done a terrible job of getting licensed dispensaries up and running.But the Times sees another silver lining: It notes that dispensary owners “include people with criminal convictions, veterans, women, nonprofits and people of Black, Latino and Asian descent.”

The affirmative action that helped achieve that diversity is part of the problem. Among other things, New York mandated preferences for license applicants who suffered as a result of the crusade against cannabis. While that idea has a pleasing symmetry, it never made much sense as a way of making up for the harm inflicted by cannabis criminalization. And in practice, executing the plan has drastically limited the legal marijuana supply.

People with marijuana convictions certainly should not be excluded from participating in the newly legal market, a policy that would add insult to injury. But that does not mean they should have a legal advantage over cannabis entrepreneurs who were never arrested but might be better qualified.

The state arguably does owe something to people who were punished for engaging in a business it has now decided to legalize. But why should reparations take the form of marijuana license preferences, as opposed to, say, direct financial compensation for legal costs and lost liberty? The method New York has chosen is limited to people who are currently interested in selling cannabis, which illogically excludes many others who were injured by enforcement of the state’s marijuana laws.

Hochul nevertheless is proud of New York’s equity efforts, even as she complains about the state’s agonizingly slow progress toward a legal market. “I’m very fed up with how long it’s taken to get some of these approvals,” she told The Buffalo News after New York’s Cannabis Control Board canceled a meeting at which it was expected to approve new retail licenses. “My understanding is that the board was supposed to consider 400 applicants. They only had three new retail locations approved….My team got involved and [said], ‘No, go back to the drawing board, work harder, get this done.’ And no, I’m not satisfied with the pace.”

Part of the solution, Hochul thinks, is cracking down on all those “rogue head shops,” which is apt to inflict precisely the sort of injury that New York supposedly is trying to ameliorate, punishing entrepreneurs for filling the yawning gap left by the state’s misguided policies and administrative incompetence. More promisingly, Hochul has ordered “a top-to-bottom review of the state’s licensing bureaucracy,” aiming to “shorten the time it takes to process applications and get businesses open.”

TheTimes notes that license applicants “have filed lawsuits accusing the agency ofoverstepping its authority,giving conflicting guidanceanddiscriminating against white men in its push for diversity.” The rollout “has been delayed for months at a time by lawsuits, the state’s monthslong rule-making process and the state’s failure to provide the start-up loans and real estate that it promised to the first 150 dispensaries.”

A recent scandal involving Damian Fagon, the New York Office of Cannabis Management’s chief equity officer, reinforced the impression of dysfunction. Jenny Argie, who owns a company that supplied edibles to dispensaries, told theTimes that Fagon “retaliated against her company, Jenny’s Baked at Home, after New York Cannabis Insider published parts of a conversation with him about the state’s failure to punish bad actors, which she had recorded.” A month later, “her products were recalleda first for the stateand her business has been temporarily shut down.” Fagon has been placed on administrative leave pending the outcome of an investigation by the state inspector general’s office.

Legalization activist Annette Fernandez defended Fagon in an interview with theTimes. “Regardless of his hubris,” she said, “he’s still the No. 1 advocate for equity.” But the equity progra is itself an act of hubris, distorting the market by prioritizing progressive goals instead of awarding licenses to anyone with the wherewithal to run a successful marijuana business.

In addition to the bureaucratic shake-up, Hochul supports legislation that would substantially reduce the state’s marijuana taxes. As should have been obvious to anyone who was paying attention to what happened in states such as California (which apparently did not include New York’s legislators), taxes are a major factor in the ability of licensed marijuana businesses to compete with the black market, attract customers, and turn a profit.

New York collects a 13 percent retail tax on cannabis products, plus a tax based on their THC content: 3 cents per milligram in edibles, eight-tenths of a cent per milligram in concentrates, and half a cent per milligram in flower. That tax amounts to 30 cents for a gummy containing 10 milligrams of THC and $3 for a 100-milligram chocolate bar. And since it is collected from the distributor, its impact is compounded by the markup and tax at the retail level. Hochul favors replacing the THC tax with a 9 percent wholesale excise tax.

The THC tax is one of those ideas that appeal to progressive technocrats who give little thought to unintended consequences. The rationale was that it would help maintain revenue in the face of falling retail prices while deterring overconsumption by forcing consumers to pay more for products of higher potency. Legislators somehow did not take into account the existence of a black market in which the tax rate is zero. Given that reality, there is an unavoidable tradeoff between using taxes to raise revenue or paternalistically prod consumers and getting those consumers to patronize the businesses that actually collect the taxes.

Back in December 2022, Hochul unveiled a “licensed cannabis dispensary tool” that consumers could use to check a pot store’s legal status. She urged shoppers to look for signs “posted in the windows of legally licensed retail dispensaries” that include a QR code to verify that a store is officially allowed to sell cannabis. She said the signs “will help to protect public health and strengthen our ability to deliver the equitable cannabis market our law envisions,” and she promised to “shutdown illicit operators who are selling products that put New Yorkers at risk.”

More than a year later, those “illicit operators” outnumber “legally licensed retail dispensaries” by about 23 to 1. Instead of trying to scare consumers about the hazards that might be lurking in black-market pot or urging them to do their civic duty by eschewing it, maybe New York politicians should remove the barriers that have fostered the embarrassing situation in which they find themselves.

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‘Crushing blow’ for care homes as they face ban on overseas recruitment

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'Crushing blow' for care homes as they face ban on overseas recruitment

Care workers will no longer be recruited from abroad under plans to “significantly” bring down net migration, the home secretary has said.

Yvette Cooper told Sky News’ Sunday Morning with Trevor Phillips programme the government will close the care worker visa route as part of new restrictions which aim to cut the number of low-skilled foreign workers by about 50,000 this year.

Politics live: Govt launches crackdown on migration

She said: “We’re going to introduce new restrictions on lower-skilled workers, so new visa controls, because we think actually what we should be doing is concentrating on the higher-skilled migration and we should be concentrating on training in the UK.

“Also, we will be closing the care worker visa for overseas recruitment”.

The move comes ahead of the Immigration White Paper to be laid out this week, which will give more details on the government’s reforms.

Care England, a charity which represents independent care services, described Ms Cooper’s comments as a “crushing blow to an already fragile sector” and said the government “is kicking us while we’re already down”.

Its chief executive Martin Green said international recruitment is a “lifeline” and there are “mounting vacancies” in the sector.

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Reform: Immigration ‘should be frozen’

Cooper refuses to give immigration target

Ministers have already announced changes to the skilled visa threshold to require a graduate qualification and higher salary.

Ms Cooper told Trevor Phillips that this – along with the care worker restrictions – will result in a reduction “probably in the region of up to 50,000 low-skilled worker visas in the course of this year alone”.

However, she refused to give a wider target on the amount the government wants to see net migration come down by overall, only saying that it needs to come down “substantially”.

Ms Cooper said the Conservatives repeatedly set targets they couldn’t meet and her plan was about “restoring credibility and trust”.

She said: “It’s about preventing this chaotic system where we had overseas recruitment soar while training in the UK was cut and we saw low-skilled migration in particular, hugely go up at the same time as UK residents in work or in training fell. That is a broken system. So that is what we need to change.”

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Care companies say they can’t carry on after NI hike

The government is under pressure after it’s drubbing at the local elections, when Reform UK took control of 10 councils in England.

Richard Tice, Reform’s deputy leader, said the party’s strong performance was because people are angry about both legal and illegal immigration and called for immigration to be “frozen”.

He told Trevor Phillips: “The reality is that we’ve just won by an absolute landslide – the elections Thursday last week – because people are raging, furious, about the levels of both illegal and legal immigration in this country.

“We need to freeze immigration because the way to get our economy going is to freeze immigration, get wages up for British workers, train our own people, get our own people who are economically inactive back into work.”

Net migration – the difference between the number of people immigrating and emigrating to a country – soared when the UK left the EU in January 2020.

It reached 903,000 in the year to June 2023 before falling to 728,000 in mid-2024.

According to the Home Office, the number of ‘Health and Care Worker’ visas increased from 31,800 in 2021 to 145,823 in 2023, with the rise primarily due to an increase in South Asian and Sub-Saharan African nationals coming to work as care workers.

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Sky News investigates UK care homes

The number decreased significantly in 2024 to 27,174 – due to measures introduced by the Tories and greater compliance activity, the government said.

The crackdown is likely to cause concern in the care sector, which has long warned that low wages are driving a recruitment crisis and is now also being hit by the rise in employer National Insurance.

Speaking to the BBC’s Sunday with Laura Kuenssberg, Ms Cooper said there are around 10,000 people in the UK who came on care worker visas for jobs that didn’t exist and “care companies should recruit from that pool”.

“They came in good faith but there were no proper checks, they were badly exploited,” she said.

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Nadra Ahmed, of the National Care Association, told Sky News this was a “scandal of the Home Office’s own making”, with care workers allowed to come to the UK “legitimately but with spurious contracts from profiteers preying on an already fragile sector”.

She added: “Understandably, many of those who are displaced have a preference of which part of the sector they work in or are qualified to do so, based on the promises made to them.

“Our preference would always be to recruit from within our domestic options but sadly we are not able to generate enough interest in social care when the funding remains a barrier to ensure that pay adequately rewards the skills and expertise of our workforce.”

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Labour’s shift on migration may assuage voters’ concerns – but risks harming struggling care sector

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Labour's shift on migration may assuage voters' concerns - but risks harming struggling care sector

Labour and the Conservatives have been left reeling from Reform UK’s rampant success at the local elections.

And it seems both have taken a clear message from the insurgent party’s signature attitude towards migration.

Politics live: Care homes face ban on overseas recruitment

Polls regularly show the issue is a top concern for voters. While stopping the boats driving illegal migration is proving as difficult for Labour as it was for the Tories – the government has the levers to control legal migration much more directly.

This week, Sir Keir Starmer and Yvette Cooper have decided it’s time to pull them, with their long-awaited white paper due to be published on Monday. But the trade offs involved in reforming the system certainly aren’t without controversy.

Speaking to Sky’s Sir Trevor Phillips to sell her plans to reduce visa numbers, the home secretary repeatedly talked about “restoring control”.

It’s no coincidence to hear her invoking the language of Brexit – highlighting the fact it was Boris Johnson who presided over the spiralling increase in migration after the vote to leave the European Union – and attempting to court the voters who believed doing so would close the borders to the influx of overseas workers.

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“It’s about restoring control and order,” she said. “It’s about preventing this chaotic system where we had overseas recruitment soar while training in the UK was cut…

“That is a broken system. So that is what we need to change.”

The home office plan is to link the reduction in overseas workers with government efforts to get the economically inactive back into work. In future, only those with degree-level qualifications will be eligible for skilled worker visas.

Employers who want to employ lower-skilled workers, on a temporary basis, will have to demonstrate they are training and recruiting UK workers as well.

The home secretary says 180 occupations will be removed from the shortage list, with the shortfall filled by training schemes to fill the gaps with home-grown workers. Questions abound about how training schemes will marry up with immediate business needs now.

But it’s the closure of the specific care worker visa which is leading to the loudest alarm bells thus far.

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Reform: Immigration ‘should be frozen’

Many in the sector are desperately worried about pre-existing staffing shortfalls, unconvinced by government advice to recruit from a pool of 10,000 workers already in the UK on care visas.

Professor Martin Green, of Care England, said: “This is a crushing blow to an already fragile sector. The government is kicking us while we’re already down.”

But the government is determined to try and wean the economy off its dependence on overseas labour.

The increase in net migration is staggering. Before Brexit, the highest figure was 329,000, in the year up to June 2015.

But by June 2023, the annual number had soared to 906,000. While last year that figure fell to 728,000, following restrictions on dependents on care and student visas – the number is still strikingly high.

Kemi Badenoch’s Tories have decided there’s no room for evasion and have regularly issued dramatic apologies for the decisions of the past.

“The last government,” said Shadow Home Secretary Chris Philp on Sunday, as if he had no part of it, “made some very serious mistakes with immigration. They allowed it to be far, far too high…that was a huge mistake.”

But Mr Philp is characteristically full of criticism of Labour’s “failure” on the “radical reforms” needed.

He wants to see parliament voting for an annual cap on numbers, although hasn’t specified what that would be.

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Ms Cooper says migration targets have no credibility after years of Tory failures – but also acknowledged that she wants the numbers to fall “substantially” and “significantly” below 500,000.

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She claims the skilled worker visa changes will lead to 50,000 fewer visas being issued this year alone – a small proportion of that overall too, but a quick result all the same.

Will it be enough?

Reform UK are clearly delighted to be directing the government’s policy agenda.

Deputy leader Richard Tice told Sir Trevor “the Labour Party is talking the talk. Will they actually walk the walk? I actually think the people are voting for us because they know that we mean it.”

But the policy is a risk.

Assuaging voters’ concerns on migration could mean taking a serious hit to an already anaemic economy and struggling care sector. Not to mention the longer-term political decision to move the party firmly to the right.

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World

‘Have the meeting now!’: Trump says Ukraine should ‘immediately’ agree to direct talks with Russia

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'Have the meeting now!': Trump says Ukraine should 'immediately' agree to direct talks with Russia

US President Donald Trump has demanded that Ukraine should “immediately” agree to direct talks with Russia in a bid to end the war.

It comes after Ukraine’s President Volodymyr Zelenskyy said his team were “ready to meet” Russian representatives following Vladimir Putin suggestion of peace talks, subject to an unconditional ceasefire starting on Monday.

Russia‘s president put forward the proposal for talks in Istanbul on Thursday after European leaders including Sir Keir Starmer threatened him with fresh sanctions if Russia failed to comply with an unconditional 30-day ceasefire starting on Monday.

Analysis:
Why calls for Ukraine talks are likely a delaying tactic from Putin

However, in a post on his Truth Social platform on Sunday, Mr Trump said he was “starting to doubt that Ukraine will make a deal with Putin”.

He urged them to accept the meeting invitation “immediately”, adding “have the meeting now”.

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Putin’s call for peace talks genuine?

Mr Trump wrote: “President Putin of Russia doesn’t want to have a ceasefire agreement with Ukraine, but rather wants to meet on Thursday, in Turkey, to negotiate a possible end to the bloodbath.

“Ukraine should agree to this, immediately. At least they will be able to determine whether or not a deal is possible, and if it is not, European leaders, and the US will know where everything stands, and can proceed accordingly.

“I’m starting to doubt that Ukraine will make a deal with Putin, who’s too busy celebrating the Victory of World War ll, which could not have been won (not even close!) without the United States of America.

“Have the meeting now!”

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Kremlin: ‘We don’t share Starmer’s view’

Shortly after Mr Trump’s post, Mr Zelenskyy posted on X saying: “We await a full and lasting ceasefire, starting from tomorrow, to provide the necessary basis for diplomacy.

“There is no point in prolonging the killings. And I will be waiting for Putin in Türkiye on Thursday. Personally. I hope that this time the Russians will not look for excuses.”

When Mr Putin first suggested the talks, Mr Trump hailed it “a potentially great day for Russia and Ukraine” and said he would “work with both sides to make sure it happens”.

Read more from Sky News:
Pope Leo calls for Ukraine peace
Michael Clarke Q&A on Ukraine war

Turkish president Recep Tayyip Erdogan also said he “fully supported” Mr Putin’s proposal and was ready to host the talks, after the two leaders spoke over the phone on Sunday.

But security and defence analyst Michael Clarke told Sky News presenter Matt Barbet there is a “long way between now and Thursday” and a “fair bit of brinkmanship” going on.

He said even if the talks do go ahead, “the chances are they’ll extend over a long period and there won’t be a ceasefire as a result of them, and the Russians will keep playing this out”.

European leaders hold call with Ukraine. Pic: Number 10
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European leaders hold call with Mr Trump. Pic: Number 10

Mr Putin’s counteroffer of talks came after Sir Keir, Mr Zelenskyy, French President Emmanuel Macron, recently elected German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk met in Kyiv.

The leaders said they had secured Mr Trump’s backing after briefing him on the progress made on the so-called “coalition of the willing” plans in a 20-minute phone call.

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