Hemp Industry Bill 2008
Objectives:
The objective of the Hemp Industry Bill 2008 is to enable low-THC hemp to be cultivated and supplied for commercial production and other legitimate purposes in accordance with a licensing scheme to be administered by the Director General of the Department of Primary Industries. The proposed Act defines low-THC hemp as cannabis that has a concentration of tetrahydrocannabinol of no more than 1 per cent. The bill provides that the possession, cultivation or supply of low-THC hemp in accordance with a licence under the proposed Act will not constitute an offence under the Drug Misuse and Trafficking Act 1985.
Comments:
Early in the twentieth century industrial hemp was considered to be an important and beneficial crop throughout the Western world. However, as a result of the development of synthetics and its classification by the Western world as a drug in the 1920s and 1930s, the production of industrial hemp was confined to China, Bangladesh and Eastern Europe.
Industrial hemp, with its many applications, is an exciting, potentially alternative crop for agriculture in New South Wales, especially in dry areas, and facilitates valuable research into developing this emerging industry in our State. It is a lucrative cropping opportunity for the New South Wales farming community. All of us recognise how tough it has been for people in the dry farming areas in recent years.
Hemp has agricultural benefits. It is useful as a rotation crop in farming systems. As a fast-growing summer crop, it can be used in rotation with winter grain crops. Hemp grows in a variety of climates and soil types and is naturally resistant to most pests; hence the reduced requirement for herbicides. Hemp has environmental advantages compared with other fibre crops. In Australia these benefits are significant. Hemp is potentially more water efficient and requires fewer agricultural chemicals than most other fibre plants. These advantages will increase as new varieties of hemp that are even more suited to New South Wales conditions are developed.
Industrial hemp products have found a place in niche markets in the developed world. There is speculation of more opportunities in the future, with some industry proponents estimating the international market for bast fibre to increase from 100,000 tonnes in 1999 to over 20 million tonnes by 2050. Traditionally, products made from industrial hemp included rope and cordage.
In passing may I say that throughout the nineteenth century the British Navy depended upon industrial hemp for its canvas and sails. Indeed, when the First Fleet came to Australia under the direction of Captain Arthur Phillip it immediately sent a boat to Norfolk Island to secure supplies of hemp because vast amounts of hemp were growing on the island.
Products made from industrial hemp also include sailcloth, carpet backing, canvas, and apparel. For example, people who wear Levi jeans, particularly Levi 501s, ought to know that the jeans were originally made from hemp denim. Recent investigations have revealed that contemporary uses of industrial hemp may include reinforcing fibre for paper, fibre-reinforced plastics—the very valuable product known as hempcrete—polycomposites, fibreboards, geotextiles, textile fabrics, for both apparel and industrial use, animal bedding, kitty litter, industrial absorbent products, and insulation.
Many uses for the oil and seed have been developed or are under investigation, including animal stockfeed, soap, oil, paint varnish, and cosmetics. Indeed, the fibre is probably more valuable than any other crop grown in Australia, apart from peanuts, from which over 1,000 uses can be found for their various components. In some countries the seed and oil from hemp plants are used in food products. Hemp does not have a distinctive taste and, like the choko, can take on the flavour of the food with which it is cooked.
However, it should be noted that in 2002 the Food Regulation Ministerial Council rejected hemp as a food in Australia. Notwithstanding that decision, overseas studies have identified that hemp oil is a very rich source of polyunsaturated essential fatty acids. Anyone who has tried to diet would realise the significance of that. Interestingly, hemp oil is quite high in some essential amino acids.
Since the late 1980s there has been a resurgence of interest in fibre products, arguably driven by the green movement with a view to saving trees by growing renewable non-wood fibres in place of clearing forests for paper and building materials. This interest has gained momentum and credibility with Japan, for instance, which has set a target date of 2010 to have 10 per cent of its paper production sourced from non-wood fibre sources.
Furthermore, the European Union has stipulated to its member countries that 95 per cent of the components of each car produced by 2015 must be recyclable. The voluntary use by automotive manufacturers of natural fibres, including industrial hemp, suggests that demand for natural fibres will continue to increase. Market segmentation for ethically produced goods, and growing support for biodegradable and natural products, has led to a wide range of new industrial hemp products being developed. Industrial hemp fibre produced in New South Wales could pave the way for the establishment of a new viable industry that creates and sells textiles, and building products made from locally grown industrial hemp.
The Hemp Industry Bill 2008 establishes a licensing scheme for the commercial cultivation and supply of industrial, or low-THC, hemp in New South Wales. Historically, hemp was grown in New South Wales from the early 1800s; the very early convicts in this country planted it. If my memory of Australian history is correct, hemp was grown widely around the Botany Bay area and was recognised by Sir Joseph Banks; it was one of the major reasons for his recommending Botany Bay as the centre for the first settlement in Australia in 1888.
By 1938 hemp was wrongly considered a drug crop, and was banned in many countries, including Australia. The legalisation of growing industrial hemp in some Australian States in recent years is recognition by government and the general community that industrial hemp may make a useful contribution to the economy as an alternative agricultural crop and that the crop can be grown under conditions that do not compromise law and order. Industrial hemp can be grown in other jurisdictions, such as Victoria, Queensland, Tasmania, Western Australia, and the Australian Capital Territory, under a licence or permit.
Licensing systems to allow for the commercial production of industrial hemp were first developed in Tasmania from 1991, and later in Victoria from 1997. In Queensland, amendments to the Drugs Misuse Act 1986 were proclaimed in September 2002 to facilitate the commercial production of fibre and seed from industrial hemp crops. Legislation to allow for the development of a commercial industrial hemp industry in Western Australia was passed in early 2004. One can see from that what is happening tonight that New South Wales is following the example of Tasmania, Western Australia and Victoria.
The establishment of a licensing scheme for the commercial production of industrial hemp, as proposed by this bill, would bring New South Wales into line with other jurisdictions in Australia. This will allow the cultivation of this crop by farmers who are described in the bill as being of “good repute”. I know of no other kind of farmer than one of good repute.
The key proposals in the bill are to allow licensed farmers to grow hemp with low tetrahydrocannabinol [THC] levels; to create an offence to cultivate and supply low-THC hemp, other than in accordance with a licence; to create a licence application process administered by the Director General of the Department of Primary Industries; to require licensed applicants, and their close business associates, to meet suitability criteria and to be subject to police checks; and to provide strong enforcement powers to inspectors and police officers.
Moreover, the bill attempts to provide a regulatory framework for the cultivation and supply of industrial hemp that makes sure drug law enforcement in New South Wales is not compromised. There is an easy way to distinguish between the growing of cannabis for personal or drug use and the cultivation of industrial hemp. Industrial hemp is grown on farms whereas cannabis for drug use is grown in the lounge rooms of inner suburban housing developments.
Industrial hemp plants are visually indistinguishable. However, the previous speaker, the Hon. Rick Colless, pointed out the difference between male and female plants and how the illicit drug is developed. If my memory serves me correctly, he said that the female plants get too close to other plants. The agreement in principle speech in the other place states:
There is no comparison between the end use of industrial hemp and marijuana. Industrial hemp is an agricultural crop grown to extract fibre and oil and has no value as a drug. Marijuana is a prohibited drug and growing marijuana is a criminal offence in this State.
Industrial hemp is a cannabis plant species, however, but it has low THC content compared to other forms of cannabis plants, and therefore cannot be used with satisfaction as a drug. Cannabis, which is not captured by the definition of low-THC hemp explicated in the bill, will continue to be dealt with under the Drug Misuse and Trafficking Act 1985.
Under the bill licenses for the cultivation or supply of low-THC hemp will be granted for purposes such as use in a manufacturing process; scientific research, instruction, analysis or study; or any other purpose prescribed by the regulations. The scheme will be administered by the Minister for Primary Industries, and will operate within a strict legal framework. The New South Wales Department of Primary Industries will work closely with the New South Wales Police Force in developing regulations and guidelines. These measures will make it legal for interested primary producers to cultivate industrial hemp with a licence, including for trial purposes.
Licenses will be granted under processes established in the bill. Licence applications will be made to the Director General of the New South Wales Department of Primary Industries. A person must be of good repute to qualify for a licence under the scheme. The applicant’s character, honesty and integrity will be taken into account in determining a licence application.
The bill goes further, giving the director general the power to refuse to grant a licence—and I do not know how on earth the Government is going to police this—if a close business associate of the applicant is not of good repute. This will ensure that a shady character is not able to hide behind the veil of his or her associates. In addition, licences cannot be granted to applicants who have been found guilty of serious drug-related offences. The same applies if a close business associate of an applicant has been found guilty of a serious drug-related offence.
The bill empowers the director general with investigative powers to aid in the determination of licence applications, including a mandatory criminal record check on the applicant and any close business associates of the applicant. The bill provides also for investigation and enforcement powers once a licence has been granted.
Police officers and inspectors appointed under the new legislation will have a range of powers to ensure that they can act quickly and decisively in response to breaches. Police officers will automatically have the power to exercise the functions of inspectors under the new legislation. The director general or an inspector will have the power to require a person to produce information or records in connection with any matter under the Act.
Conclusion:
In conclusion, the strong world demand for renewable and recyclable fibre products, and the decline and demise of some established agricultural industries in recent years, has created an interest in industrial hemp. It is a genuine opportunity for diversification into other crops, particularly by farmers in dry-area cropping. The legalisation of growing industrial hemp in some Australian States in recent years is recognition by governments and the general community that industrial hemp may be a viable alternative crop, and that it can be grown under conditions that do not compromise law and order.
The bill sets out a clear and effective licensing scheme that will allow commercial-scale production of industrial hemp in New South Wales. The commercial production of industrial hemp in New South Wales will offer significant hope to farming communities struggling under the burden of reduced access to water and continuing drought. This is a very exciting opportunity for rural communities in New South Wales, and I commend the bill to the House.
