Thursday, 30 November 2023

Committees

Economy and Infrastructure Committee

Inquiry into the Industrial Hemp Industry in Victoria

Georgie PURCELL (Northern Victoria) (09:40): Pursuant to standing order 23.22, I table a report on the inquiry into the industrial hemp industry in Victoria, including an appendix and extracts of proceedings, from the Economy and Infrastructure Committee, and I present the transcripts of evidence. I move:

That the transcripts of evidence be tabled and the report be published.

Motion agreed to.

Georgie PURCELL: I move:

That the Council take note of the report.

Cannabis sativa, or industrial hemp, is one of the botanical world’s super plants. A variety of cannabis, but with very low levels of THC and no psychoactive effects, industrial hemp has been cultivated around the world for millennia. It is fast growing, requires fewer pesticides and chemicals than other crops and efficiently regenerates soils by drawing on atmospheric nitrogen, making it an ideal rotational crop supporting critical soil health. Hemp fibres and seeds can be used for an enormous array of products – as many as 25,000 – including textiles, building materials, packaging, biofuels, garden mulch, oils, food products and pharmaceuticals. It also has enormous potential to help reduce carbon emissions. In both its natural and processed form, hemp is efficient at carbon sequestration, while hemp products can readily substitute for many synthetic, plastic and animal-derived materials.

It is not surprising then that industrial hemp is enjoying a global resurgence today. Stigmatised and outlawed across much of the world throughout the 20th century due to its likeness to cannabis, countries such as Canada, China and France are now not only deregulating hemp but directing huge investment into the crop. Victoria was one of the first states in Australia to relegalise industrial hemp in 1998. Unfortunately hemp farming and manufacture has remained stunted due to prohibitive regulation, licensing and planning rules that continue to stigmatise hemp as an illicit plant.

During this inquiry the committee heard from hemp farmers, manufacturers, entrepreneurs, textile and fashion experts, scientists and agriculturalists working across Victoria’s fledgling industrial hemp industry. Despite currently contributing only a small proportion of the national hemp output, and Australia’s tiny contributions to global output, stakeholders said that with the right legislative changes and investment hemp offers Victoria significant economic opportunities and can aid its emission-reduction targets.

In this report the committee makes nine recommendations to achieve these ends, including a standalone industrial hemp act, as already exists in all other states except for Queensland and which will signify the legitimacy of this crop. Licensing and regulation should also be simplified and streamlined. The Victorian government should work with other states to lobby the Commonwealth government to legalise the use of the whole plant, which is currently prohibited by the federal poisons standard, and to accredit hemp in carbon credit schemes. There are also opportunities for the Victorian government to aid the industry with procurement contracts, prioritising research and development and offering seed funding to establish hemp hubs and cooperatives. On top of this, hemp could also contribute to climate mitigation in Victoria’s fashion and fibre industries.

I would like to thank all stakeholders who made high-quality and thoughtful submissions, those people who gave their time and expertise to appear before the committee in public hearings to give evidence. The evidence received was of a high standard and significantly enhanced the committee’s understanding of this complex issue. I would like to thank Ms Payne and Mr Ettershank for referring this inquiry to the Economy and Infrastructure Committee and would further also like to thank my committee colleagues for the professional and courteous way they approached the inquiry. There were sometimes different perspectives among members, but there was always a collegiate approach and collaboration, and I greatly appreciate the manner in which the committee members conducted themselves throughout the inquiry.

Finally, I would also like to thank the secretariat of the committee – committee manager Michael Baker, who we are so happy to have back at work, inquiry officer Ben Huf, research assistants Imran Ahmed and Caitlin Connally, administrative assistant Jo Clifford and graduate recruit Adeel Siddiqi, as well as, for additional assistance, senior committee manager Patrick O’Brien – for the professional and exemplary support they have provided the committee throughout the inquiry, and I look forward to the government’s response.

Rachel PAYNE (South-Eastern Metropolitan) (09:45): I rise to speak on the industrial hemp industry in Victoria report that is being tabled today, as a participating member of the Economy and Infrastructure Committee. I obviously love hemp; I think it is the future. But what I found interesting when it came to working with this committee was we all started to find a new-found love for hemp, whether it be around the fashion and textiles industry or the building industry, and Bev and I have concocted an idea where we are going to have a hemp fashion parade. You are all warned: you may be approached to model for our fashion parade.

The inquiry itself examined the issues, barriers and opportunities facing the current Victorian industrial hemp industry, and we have to remember that hemp is currently treated as if it is an illicit drug. It is controlled by the Drugs, Poisons and Controlled Substances Act 1981. Some of the key recommendations or the key themes that came out of this report were that a viable Victorian hemp industry will not cost a lot of money and it is achievable. When it comes to hemp investment, reducing the stigma of hemp through meaningful legislative reform is key to improving the attitudes of both local government and investors, and the Victorian government has an opportunity to advocate for hemp at a national level. I want to thank particularly Georgie Purcell as chair of that committee for wrangling us all together at times. I think we all acknowledge that we learned a lot about hemp in this space. The global value of the hemp industry is $4.9 billion, and that is a conservative figure. We have a real opportunity in this state, and I look forward to progressing this issue with you all in the new year.

Bev McARTHUR (Western Victoria) (09:46): I too would like to rise on the issue of the report on industrial hemp being tabled today and congratulate the chairman, who did an outstanding job. I do not know that she had to wrangle us all together. We were incredibly cooperative, and I thank Ms Payne for illuminating us on all the various aspects of hemp. We can build houses with it, we can have bowls made out of it and we can have clothes that we can wear made out of it. I am certainly very supportive of the proposed fashion parade. Mr McIntosh, where is he? He is going to be one of the models. Dr Mansfield, I think, has been dobbed in. It is going to be a spectacular show, I can tell you.

I am all for expanding agricultural industry. Any new forms of agriculture production that we can get going I am in favour of. Any diversification of agricultural farms –

Melina Bath: And keeping the ones we’ve got.

Bev McARTHUR: Absolutely – keeping the farms we’ve got and expanding the meat industry and not killing off the pig industry. Absolutely we are all in favour of that. But I am totally opposed to the taxpayers having to get involved in subsidising the industry. If it has got legs, it will stand on its own. What we do need, though, is to deregulate the system so that it is easier for people to enter the market and not so prohibitive for them to continue production. That needs to happen. We need to bring all sorts of licences up to the 21st century. They are archaic in many areas, and there is lots more to be done. We did learn a lot, Ms Payne, so thank you very much for the opportunity to learn about a bit more about industrial hemp. I do have some friends that try and produce it. But well done, and well done to the secretariat, who also did an amazing job.

Motion agreed to.