NSW MP wants incentives for Hunter medical marijuana and hemp industry

The NSW government has committed at least $25 million each year from mining royalties to boost jobs, as coal mining communities transition to clean energy.

More than 24,000 people in the Hunter voted for the Legalise Cannabis Party at the state election in March, with the largest proportion of votes coming from the mining belt.

Mr Buckingham, the party's sole representative in the NSW Parliament, said "high-end horticulture, manufacturing and biomedical research in cannabis could be a great opportunity for the Hunter Valley".

"We see the economic benefits being enormous, with potential revenues from levies, duties, taxes and other charges."

He told ACM before the election that the Hunter was the "perfect place" for a cannabis growing industry, given its access to good water, cheaper land and proximity to markets.

An 11,000-square metre medicinal cannabis operation was built in the Singleton council area in 2020.

"The medicinal cannabis industry is in its infancy in NSW, so there are only a few facilities," Mr Buckingham said.

"Each facility employs a lot of people because you have labouring, agronomists, horticulturalists, processing, white collar jobs and logistic transport.

"NSW is missing out on the rapid growth in the industry that's already going past billions of dollars in turnover. We don't have a medicinal cannabis industry policy and economic development plan for this industry."

A Department of Enterprise, Investment and Trade spokesperson confirmed it had "no current incentives for the growth of the medicinal cannabis or industrial hemp industry in the Hunter".

Mr Buckingham asked NSW Treasurer Daniel Mookhey in a budget estimates hearing last month what the government was doing to "make sure it seizes the opportunity of medicinal cannabis".

Mr Mookhey responded: "When it comes to the growth of medical cannabis and hemp-based industries, as you know, regional NSW plays a crucial role in its economic development".

"There is an opportunity for revenue. But it's fair to say that I don't necessarily think it's one that NSW can capitalise on with the current constitutional settings."

Mr Mookhey said only the federal government could place "an excise duty" on cannabis, but Mr Buckingham said this money would flow to the states.

Medicinal Cannabis Industry Australia director Peter Crock said there was scope for medicinal cannabis manufacturing in the Hunter.

He was involved with establishing a cannabis operation in Mildura in regional Victoria, which "now employs around 150 people".

"The regulation and structure is well set for Australia to produce and be self-sufficient with medicinal cannabis.

"There are still a lot of imports coming into Australia. Getting people to get past the stigma of cannabis is holding it back."

However, he said there were "bigger fish to fry in terms of the driving laws that state governments have been reticent on, which has been really disappointing".

Mr Buckingham has a petition to the NSW Legislative Council to amend the Road Transport Act to allow for medical cannabis exemptions.

"If you're taking medicinal cannabis and have a prescription, you should be able to drive and have a defence if you test positive at an RDT [roadside drug test]," he said.

"You're using a medicine in accordance with your doctor's instructions. That is how every other medicine is used."

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