Senate pot legalisation bill goes up in smoke

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By Leith van Onselen

While the developed world is gradually legalising cannabis, it seems Australia will remain stuck in the dark ages with the Senate set to reject a private member’s bill to legalise recreational weed:

“It is high time we stopped interfering in adult choices,” Senator Leyonhjelm told parliament on Monday.

With the coalition and Labor opposed to legalising cannabis, the draft laws will not pass the upper house but debate was adjourned before they were voted on.

Liberal senator Jane Hume cited numerous studies showing harmful effects of marijuana use, including links to mental health issues.

“It’s unfathomable that anybody in this place could support a bill that increases a likelihood of teen suicide and of youth dropping out of school,” she said.

Senator Leyonhjelm talked up savings for law enforcement and an estimated $300 million boost to GST revenue through regulating the drug.

The Greens also support legalising cannabis…

Greens leader Richard Di Natale said the so-called war on drugs had been an unmitigated failure.

“It’s about time we had some courage from our political leaders, that we recognise we need to start treating drug use as a health issue, not a law and order issue,” Senator Di Natale said.

He outlined a plan for a regulated cannabis market with a focus on reducing harmful impacts.

MB support legalising marijuana on the grounds that:

  • It would bring marijuana in line with alcohol and tobacco, which are both legal and regulated;
  • It would guarantee purity of supply;
  • It would reduce profits to organised crime; and
  • It would provide a useful revenue stream for the government, as illustrated by states in the US that have recently legalised marijuana.

This view was recently backed by the Australian Drug Law Reform Foundation, which threw its support behind legalising and taxing marijuana on the grounds that it would free-up Australia’s law enforcement and legal systems and raise government revenue.

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Opinion polls also show the majority of Australians support decriminalising marijuana. (see here and here).

Whatever the case, the ‘war on weed’ has been an abject failure, as the United States experience proved.

Given marijuana is now legal in nine US states, has become legal in Canada, Uruguay and Catalonia, and New Zealand and Mexico are considering legalisation, the justification for Australia retaining its prohibition has evaporated.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.