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INDUSTRIAL HEMP BILL 2003
Introduction and First Reading

Bill introduced, on motion by Mr F.M. Logan (Parliamentary Secretary), and read a first time.

Second Reading

MR F.M. LOGAN (Cockburn - Parliamentary Secretary) [12.27 pm]: I move -

That the Bill be now read a second time.

This Bill, if enacted, will clear the way for the possible development of an industry for cultivation and processing of industrial hemp in Western Australia. I clarify at the outset that the phrase “industrial hemp” is used to describe cannabis that contains levels of the psychotropic drug tetrahydrocannabinol - THC - of less than 0.35 per cent. This distinguishes it from the drug variety of cannabis - commonly called marijuana - that contains much higher levels of THC. Industrial hemp is of no effect as a drug.
Processed industrial hemp - hereinafter called “hemp” - has a wide range of uses. The European Union estimates that more than 100 000 tonnes per annum of processed hemp fibre will be required by car manufacturers by 2005, an increase from 40 000 tonnes per annum in 1996. At least 70 per cent of this fibre will need to be sourced from outside Europe.

Oil and chemical absorption materials are estimated to have a current Australian market value of $9.5 million per annum. Additional value-added uses include biodegradable plastics, fibreboards, non-woven geotextiles for use in soil stabilisation, re-seeding and erosion control, and woven textiles with the potential for blends with other natural fibres such as cotton and wool. It is estimated that by 2005 the North American market for natural fibre and plastic composites will exceed $1.4 billion per annum. Value-added hemp oil products include oil paints, varnishes, printing inks, fuel, solvents, putty and animal feed. A fast-growing application for hemp oil is in the area of body care products. The rich essential fatty acid content of the oil is employed in lotions and creams for the skin as well as in lip balms, conditioners, shampoos, soaps and shaving products.

There has been some debate about the commercial viability of a hemp industry in Western Australia. Hemp is produced by, among others, less developed countries with very low labour costs and often government subsidies, which obviously puts a Western Australian industry at a comparative disadvantage. Yet the proponents of an industry here are confident of its viability, and this Government can find no ground for standing in their way. Indeed, it is already the case that other States in Australia allow the commercial production of hemp. Victoria amended its Drugs, Poisons and Controlled Substances Act 1981 in 1997 to allow industrial hemp cultivation. In Queensland, the Drugs Misuse Act 1986 was amended in 2002 to permit the commercial production of industrial hemp.

I therefore turn to the scheme of this Bill itself. The Bill is the result of extensive consultation between the ministers and the departments of agriculture, police and health. This was to ensure that a seamless and comprehensive licensing and supervisory regime would regulate the new industry.

The Bill provides for a strict system of licensing for legal persons wishing to cultivate, harvest or process industrial hemp. Applications for licences will be scrutinised carefully, including background checks and involving - if the registrar deems it necessary - a reference to the Commissioner of Police to inquire into, and report upon, certain matters. This will assist in maintaining the integrity of the industry and provide the public with confidence that this law is not some sort of back door to the cultivation of marijuana.

If a person is granted a licence, it may be endorsed with conditions such as: the premises at which the licensed activity is to take place; required security measures to be implemented at those premises; the keeping of such records as specified by the registrar; the provision of information, records or other documents as required by the registrar; and the harvesting and disposal of crops and the processing and disposal of harvested material and crop residue.

To ensure full compliance with licence conditions and to address any other matters of concern, the Bill provides for the appointment of inspectors. In addition to inspectors appointed under the Bill, every police officer becomes an “inspector” for the purposes of the Bill. Some of the powers of inspectors to investigate potential breaches of licences or offences against the Bill are: to enter and inspect any place occupied by the licence holder, other than a residence; to require a person to produce any document relevant to the investigation and, if necessary, to retain that document for as long as necessary; and to remove for analysis samples of plants to determine, for example, the THC content of the plant, to establish the variety of the plant or whether the plant has been cultivated in accordance with a licence.

The registrar may cancel or suspend a licence if there has been a contravention of a condition of a licence. There are a number of other grounds, which I will not go into in detail, upon which a registrar may suspend, vary or cancel a licence.

The oversight of an industrial hemp industry provided for in the Bill is necessary given the nature of the commodity. This supervision is not intended to hamper the prospects of the industry in any way.

This Bill will allow for the possible development of an industrial hemp industry in Western Australia that carries with it the potential for the development of new export markets, while also meeting domestic demand for various hemp-based products. This Bill has been some time in the making and has involved extensive consultation. Whether the potential of an industrial hemp industry can be realised is ultimately down to the performance of this new industry sector. This Government, via this Bill, simply sets out the platform from which industry can now explore the viability of industrial hemp as a commodity. Once this Bill is enacted, at least industry will have that chance. I commend the Bill to the House.

Debate adjourned, on motion by Mr J.L. Bradshaw.