In Australia, it’s been reported rank-and-file Victorian Liberal party members will use a state council meeting this month to put forward their case for a regulated cannabis market for adult use in the state.
The Guardian is reporting that among 62 draft motions for the Victorian Liberal state council meeting is to treat cannabis in a similar way to alcohol. While the motions are non-binding both at a state and federal party level, they indicate the mood of rank-and-file members.
The motion proposes regulating a retail market of licensed dispensaries, with a tax on sales matched to the federal government’s excise duty for beer. The majority of this revenue would to go to reducing state debt, with the remainder funding drug and alcohol support services.
In US states that allow adult-use cannabis and tax it, the revenue has been quite a cash cow; helping to fill state coffers. Economic modelling by Sapere Research Group released by Penington Institute indicated a regulated cannabis market in Victoria could inject $10 billion into the state’s gross product over the next 10 years, and generate nearly $2 billion in new government revenue.
Furthermore, more than 17,000 full-time equivalent jobs would be created across the economy and it would generate $18 billion in direct and flow-on economic activity over a decade.
As things stand, Victoria’s (illegal) cannabis market is currently estimated to be worth more than $1.5 billion, and the State Government’s cut is zero.
“Victoria’s current approach to cannabis — prohibition and criminalisation — has cost billions with little effect on demand or public safety,” said John Ryan, Penington Institute CEO in July. “In contrast, evidence from Canada and several US states indicates regulated markets can reduce illegal sales and deny crime gangs of a source of profit.”
In other recent cannabis-related news out of the state, the Legalise Cannabis Victoria (LCV) party was claiming a win in relation to the state’s outdated workplace drug testing laws, which were last updated in 2012. The party triggered a parliamentary inquiry; among the recommendation of which was WorkSafe update its advice so that prescribed medicinal cannabis is treated in the same way as other medications with the potential to cause impairment.
The state government’s response to the inquiry is now nearly 8 months overdue. However, an LCV motion in late July calling on the Allan Government to commit to progressing the reforms recommended passed Victoria’s Upper House.
