Liquor corp under fire for $160-an-hour cannabis consulting contract

The opposition is raising concerns about a consulting contract awarded by the Newfoundland and Labrador Liquor Corporation to the man behind the Liberal's last election advertising campaign.

In November, Kevin Casey was given a contract to advise the liquor corporation on its launch plan for legal cannabis.

He's paid $9,000 a month, based on a 14-hour work week, which breaks down to about $160 an hour.

[The contract] doesn't make any sense when you put it in the context of reducing cost.- Keith Hutchings

A spokesperson for NLC confirms there was no competition for the contract, which started December 1.

Casey is the founder of Idea Factory, and currently senior vice-president of sales and marketing at Cal Legrow Insurance.

No one from NLC would do an interview, but in a statement board chair Wayne Myles said Casey was hired because Idea Factory was the advertising agency for the NLC, so Casey knows the company well.

He said Casey has "deep knowledge of the NLC business and chemistry with the core team through his work over a six-year period."

Myles said his expertise is needed for 10 months to help get the Crown corporation ready for the legalization of marijuana in July.

'Political card doesn't carry weight': Casey

Casey also did the advertising for the provincial Liberal party during the 2015 election campaign, which the Liberals won.

PC MHA Keith Hutchings said that connection "causes some concern."

Former Liberal candidate Lynn Sullivan was recently named the company's chief financial officer, at the suggestion of Finance Minister Tom Osborne.

Casey declined an interview but in a message said "the political card doesn't carry weight."

He noted that before working on the Liberal campaign, he did three campaigns for the PCs under Danny Williams and Kathy Dunderdale.

In his statement, Myles insisted $160 an hour is "effectively at or below what I consider to be market for his experience and expertise level."

Myles said Casey initially proposed a contract for $12,000 a month based on a 10 hours per week — which amounts to $300 an hour — and the agency negotiated more time for less money.

A question of timing

Hutchings said the contract goes against the government's directive that NLC should trim costs.

"We've seen a new CEO brought in apparently to reduce expenditures," said Hutchings.

"Right now we understand that there is a contract of $9,000 to $10,000 per month for a private contractor to come in to do some work related to activities going on at NLC which doesn't make any sense when you put it in the context of reducing cost."

In a statement, Osborne insists he had no involvement in the hiring of Casey.

"I trust and support the board of directors of the NLC in securing the resources they need as they undertake the monumental task of preparing for the legalization of cannabis in just a few short months," he said.

A spokesperson said Casey has already assisted the corporation with helping to determine who should lead the project internally and begin planning for the proposed cannabis retail model.