The Penington Institute has thrown its weight behind Green Party proposals to legalise cannabis in Australia, arguing that prohibition has allowed the black market to flourish while blocking a public health-centred response to drug misuse.
The organisation stopped short of a full endorsement of the bill as it currently stands, recommending that online sales be prohibited in the initial phase of any legal market and that high-THC products be actively discouraged.
Despite those reservations, the institute praised the bill's overarching goals, describing it as an "important step forward in Australia's gradual recognition of the failure of cannabis prohibition and the advantages of a regulated adult-use cannabis market."
"While Penington Institute neither endorses nor rejects passage of the Legalise Cannabis Bill 2023 in its current form, we strongly endorse the development of a legislative and regulatory framework for the implementation of a legal, regulated adult-use cannabis regime," it said.
"The common thread is our preference for a model that prioritises public health
and favours a cautious approach."
Althea also declared public support for the bill, contending that a regulated legal market would generate jobs, tax revenue and broader economic growth.
The support for Senator David Shoebridge's bill comes after the Australian Medical Association (AMA) came out against the legalisation bill, with the AMA arguing that such a move would send the wrong signal on public health.
Penington Institute takes the opposite view, contending that ending prohibition would deliver a public health benefit by bringing cannabis use into the open rather than leaving it in the shadows.
"Like it or not, drugs are a part of every society. It would be naïve to think otherwise and cruel to ignore it," Penington Institute chief executive John Ryan wrote in the body's submission to the Senate Parliamentary Inquiry into the Legalising Cannabis Bill 2023.
Setting out its general support for the bill, Penington said: "Cannabis prohibition doesn't work: it fails to control supply, leaves the market in the hands of criminals, and costs billions of dollars in enforcement, all while hindering a public health-led approach to managing the health harms that are associated with problematic cannabis use."
The submission also called for further debate, with the institute putting forward a series of recommended amendments to the Greens' bill.
Among them was a prohibition on online sales during the early stages of a regulated market, with the institute pointing to concerns about the "potential for delivery to underage consumers, the potential ease of exceeding purchasing limits, and the potential for relatively rapid market concentration by dominant online sellers."
"[Online sales] may disrupt the managed planning of a retail outlet sector," the submission said. "In Canada, consumers have reported difficulty distinguishing between licit and illicit online sellers, and the illicit market has increasingly moved online."
The institute also questioned the Greens' pledge to bar tobacco and alcohol companies from participating in a legal cannabis industry. While the intent was "laudable," Penington argued it would be "difficult in practice" to enforce such an exclusion.
Instead of blanket bans, Penington recommended that any future regulatory body overseeing a legalised cannabis industry conduct a "fit-and-proper persons test" to assess whether any given company's involvement was appropriate.
Additional amendments proposed by the institute included measures to discourage the use of highly potent products, such as purchase limits, training requirements for dispensary staff and strict penalties where product label information was found to be inaccurate.
The potency, packaging, form and purchase limits of edible products should also be carefully controlled, with Penington warning of an "established link" between candy-like products and hospital admissions involving children.
“The bill represents an important step forward in Australia’s gradual recognition of the failure of cannabis prohibition and the advantages of a regulated adult-use cannabis market.”
penington institute
Greater support for indigenous and other disadvantaged communities, along with a reconsideration of the proposed 15% tax levy, were also flagged as issues requiring further attention, the submission said.
"The Legalise Cannabis Bill 2023 represents an important step forward in Australia's gradual recognition of the failure of cannabis prohibition and the advantages of a regulated adult-use cannabis market," it added.
"We applaud the bill's presenters for their determination to move Australia towards a regulated model and view many features of the bill as sensible and responsive to both consumer preferences and harm-reduction imperatives.
"However, we also recommend amendments to ensure a coherent, flexible cannabis regime that prioritises public health and safety for both individuals and the broader community."
Althea Group separately declared its backing for the legislation, stating it "proudly and unequivocally supports The Legalising Cannabis Bill 2023."
The ASX-listed company said in its submission that a legal industry would create jobs, generate tax revenue and drive economic growth, while doing away with the need for an underground illicit market.
"We firmly believe this legislation presents an opportunity for economic progress and innovation while ensuring responsible regulation.
"We stand ready to contribute our expertise to foster a thriving, well-regulated, cannabis industry that benefits all Australians," it added.
