Wednesday, 31 May 2023

Hemp industry

Rachel PAYNE (South-Eastern Metropolitan) (15:48): I move:

That this house:

(1) notes the enormous utility of industrial hemp:

(a) in textiles, rope, food, oil, bioplastics, construction materials including hempcrete and fibre panels, insulation, animal fodder and biofuel;

(b) as a carbon dioxide reducing ‘carbon sink’, capable of absorbing more carbon dioxide per hectare than many forests or commercial crops;

(2) further notes that while there has been a rapid expansion in industrial hemp production nationally, as of April 2023 there are only six growers cultivating a total of 169 hectares in Victoria;

(3) requires the Economy and Infrastructure Committee to inquire into, consider and report, by 15 November 2023, on:

(a) issues, barriers and opportunities within the current Victorian industrial hemp industry;

(b) the current Victorian industrial hemp industry compared to other relevant jurisdictions;

(c) the constraints and confounders to expanding the industrial hemp industry in Victoria;

(d) the environmental benefits and costs of an expanded industrial hemp sector;

(e) how industrial hemp can be best utilised to assist Victoria in meeting emissions reduction targets;

(f) how the Victorian government could support industry development and growth across Victoria;

(g) whether the regulatory and licensing framework for hemp cultivation and hemp products may be streamlined to benefit the expansion of the industrial hemp industry, including but not limited to the introduction of a standalone industrial hemp act;

(h) key elements for the potential development of a hemp industry plan for Victoria; and

(i) any other relevant matters.

I rise on behalf of Legalise Cannabis Victoria to speak to motion 70 standing in my name. We are seeking the support of this chamber for a parliamentary inquiry to be conducted by the Economy and Infrastructure Committee into the potential for industrial hemp to sow the seeds of Victoria’s future.

Let us shine a light on this ancient, much misunderstood and incredibly versatile, resilient and sustainable crop and explore its potential. The hemp industry is not new. Hemp was one of the first plants to be spun into fibre many thousands of years ago – 8000 years ago in the case of the decorative rope in Taiwan. For centuries rope, fabrics and industrial materials were made from hemp fibre. Hemp was commonly used to make sail canvases. In fact the word ‘canvas’ is derived from cannabis. But when marijuana was banned as an illicit substance across much of the globe, industrial hemp was caught in the same web and its use dissipated despite it remaining so fundamentally useful. Fast forward to today, and we are seeing a hemp resurgence globally but also a great untapped potential.

Australia legalised industrial hemp production at the same time as Canada; however, in Canada the hemp industry is worth $587 million, with projections reaching $2.4 billion by 2030, while our national farm gate here in Australia is worth $15 million, so we can see that industrial hemp is a multimillion-dollar industry internationally.

Specifically bred for seed and fibre production, hemp is not psychoactive, and it has many varied uses that include food, oil, paper, bioplastics, animal fodder, biofuel, construction materials like hempcrete and many more. In fact hempseed is higher in protein than beef. In modern textile production the woody fibres of hemp blend well with many other fibre types. Hemp fabrics are stronger, more absorbent, more durable and provide better insulation than common cotton fibres. In fact my outfit today is completely hemp.

Members interjecting.

Rachel PAYNE: Thank you. I think I look quite lovely in it too. As I was putting it on this morning, I discovered from the labelling that it also has a UV protectant, which is pretty amazing for the Australian economy and climate.

I also just want to talk a little bit today about how this morning I hosted a few of the hemp industry’s greatest. We have had some people here who are producers and innovators in this industry, who were able to showcase things like hemp carpet and hemp fibre and fabric. We had part of the plant here which shows you the stalk and that the outside of that material is a strong fibre and inside of that are the hurds, and then you obviously have seeds, so the whole plant can be used. It is so durable and robust and grows within 100, 120 days. In fact one of the producers that we had here today could guarantee that within 100 days you would have enough fibre to build a house. When we are talking about the fact that an industry is completely shutting down, when it comes to old-growth forests, I think that we can offer a viable alternative, and I will talk more about that in a little while.

Let me come back to hempcrete, because I am really excited by hempcrete. It is an incredible and very durable product, but it also offers a future for sustainable building. Hempcrete is recyclable, it is non-toxic, it is fireproof, it is biodegradable, it is mould and humidity resistant and it has excellent acoustics. One of hempcrete’s most exciting features is the way it is crack resistant under movement. Now, as we have just experienced another earthquake, I dare say that we might be exploring new alternatives in building and construction, particularly around earthquake-prone areas.

Just going back to that point about it being fireproof, the resistance of hempcrete means that for 4 hours it can withstand 1800 degrees Celsius temperatures. Australian bushfires are devastating to communities, and to offer an alternative building material that can provide that assurance and may even result in your house still standing after a fire has been through your property is pretty impressive. It is something where we should really be pushing forward and investigating all the opportunities that we have here, particularly as we have a housing shortage and are having changes around the forestry industry.

Hemp also has immense environmental potential. Hempcrete uses minimal water and does not rely on pesticides, making it a popular and economical choice for building and construction. The environmental benefits of industrial hemp do not stop there. It is capable of absorbing more carbon dioxide per hectare than any forest and almost any other commercial crop. Not only is hemp a super absorber of carbon dioxide, it is a replenisher of soil. It also grows at an incredible pace. As I mentioned before, it takes 120 days to reach harvest. Once it is ready for harvest, 1 acre of hemp can, for example, produce just as much paper as double the amount of much slower growing trees, and it gets there in a much quicker time frame. It is hardy and resilient. Hemp can grow on land unsuitable for other crops and can weather many environments, making it a potentially powerful plant in the Victorian climate. We acknowledge the work of the Victorian government on climate action and emissions reduction in Victoria, and we hope that industrial hemp can be a powerful tool for the fight against climate change, as hemp’s rapid growth enables it to sequester carbon at a rapid rate.

Just on the point that I touched on earlier around the government’s announcement to end native logging in Victoria, I know that many of my colleagues have been very impassioned by this discussion this week. But what I am trying to bring here is an opportunity. Fibre production can pivot. We do have an opportunity to consider industrial hemp as a viable alternative. With hemp, our state can meet the growing need for building materials and fibre pulp. Broad support for this industry will help us kickstart a new era in Victoria’s fibre future with a boost to industrial hemp. All around the world we see the hemp industry re-emerging and flourishing, but we in Victoria are really lagging behind. This can create jobs, it can stimulate the economy and it will support the environment. With the immense versatility, resilience and sustainability of industrial hemp in mind, its rapid expansion nationally and internationally is not much of a surprise. What is a surprise is that despite the growth and versatility of this industry elsewhere, right now in Victoria there are six growers cultivating a total of 169 hectares.

At Legalise Cannabis Victoria we have had the opportunity to meet with industry groups and a number of stakeholders in Australia’s agricultural and hemp industries. We have heard that Victoria has immense potential for an expanded industrial hemp industry but also that this industry and its immense potential are overlooked, undersupported and suffer from a confusing regulatory environment. We know hemp has huge utility and versatility, so what we are asking the committee to find are some answers to some important questions. How does the Victorian industry stack up? Where are the barriers? How big could a Victorian hemp industry become? Can it help us meet our emissions reduction targets? Should we be cutting the red tape? Should we be incentivising investment via a grant scheme or something similar? These are important questions that we believe are best answered by a parliamentary inquiry to expand on the work of the hemp task force in the last term of government. Let us examine what other jurisdictions are doing and hear from the experts. Let us find out what an expanded hemp industry could mean for the Victorian economy, Victorian jobs and Victorian emissions reductions. Given industrial hemp’s huge potential, seemingly untapped in Victoria, let us see if we can sow the seeds for Victoria’s future.

Jacinta ERMACORA (Western Victoria) (15:58): I agree with Ms Rachel Payne that the hemp industry has huge potential for enormous utility and importance. I also note the rapid expansion in industrial hemp production nationally and indeed internationally.

Victoria makes such a significant economic contribution to the nation through our traditional thriving agricultural sector. If we look at our top agricultural industries, we lead production for our nation. We have a magnificent wool industry. Data collected by Agriculture Australia shows that in 2021–22, Victoria exported 174,000 tonnes of wool exports, valued at $1.68 billion, a 27 per cent increase on the previous year. By value, Victoria is Australia’s largest wool exporter, accounting for 51 per cent of the nation’s wool exports. In 2021–22 Victoria’s total grain exports were valued at $4.4 billion, up 73 per cent year on year, making Victoria the third-largest grains exporter by value, accounting for 13 per cent of Australia’s total grain exports, valued at $8.3 billion. In 2021–22 the value of Victoria’s beef exports was $1.7 billion, representing 39 per cent of all meat exports. Victoria is the leading contributor to Australia’s dairy industry, accounting for 77 per cent of Australia’s dairy exports, valued at $2.1 billion. There is no doubt our southern climate provides our farmers with excellent growing conditions, and it would seem prudent to look into how Victoria can capitalise on the fast-growing hemp market.

As of April 2023 there are only six growers cultivating a total of 169 hectares of hemp in Victoria. There is already a great deal of work being done in this space. This government has already made changes to support the development of a hemp industry in Victoria. Last year this government passed the Agriculture Legislation Amendment Act 2022 to support the cultivation of hemp crops and their subsequent industrial use, and I acknowledge the important research that was undertaken by the industrial hemp task force established by the Andrews Labor government in 2019. The task force engaged directly with industry stakeholders, participants and research organisations to gain a thorough understanding of the industry, exploring its challenges and opportunities and how Victoria can maximise hemp’s economic potential. This motion is also timely due to the Andrews Labor government already having funded a research trial to support the cultivation of hemp across Victoria. Agriculture Victoria has co-invested with AgriFutures and industry in national industrial hemp variety trials and hosts the Victorian trial at Hamilton in south-west Victoria, in my seat.

As outlined in the AgriFutures Emerging Industries report Industrial Hemp Variety Trials: Results from the Hamilton Smart Farm Trial for the 2021–22 Growing Season, the trial included the evaluation of six hemp varieties provided by industry and sown at three sowing times. The varieties selected for inclusion in the trial ranged in origin, sex expression, end use, maturity, height and yield potential. Initial results are encouraging, and the trial will be repeated for growers to have confidence in achieving the same results or better in different seasons. Optimising agronomy, including sowing time, nutrition requirements and water requirements, will provide further benefits with respect to yield, quality and the cost and ease of production. Importantly, all varieties remained below the Victorian THC limit of 0.35 per cent for each of the sowing times. These findings provide hemp growers with information to guide their decisions about the varieties to plant to maximise profits in the southern environment. It is recommended that the industrial hemp variety trials continue and separate experiments be conducted to address specific agronomic issues, with the results of the trials made available to growers to help guide decisions about which varieties to plant for Victorian conditions. This research, specific to Victoria, is of great value as the hemp industry grows at a rapid pace due to many valid reasons. This referral motion to the Economy and Infrastructure Committee can expand on this research using the Parliament’s resources and investigative powers.

One important issue to be explored further is the sustainability value of this product. Hemp products are often a more sustainable and environmentally friendly source than traditional products, and hemp has an incredibly wide range of applications for different industries. The textiles and apparels industry is benefiting from the use of hemp – and I acknowledge the outfits being worn today – as a sustainable alternative to conventional fabrics. Hemp fibres can be processed into eco-friendly and very durable textiles for clothing and home furnishings. Food and nutrition industries are increasingly using hempseeds. They are highly nutritious and can be ground into flour, pressed for oil or consumed whole. It does make us wonder what we may have been missing out on, as they have been found to be rich in essential fatty acids, proteins, vitamins and minerals, and these benefits can be incorporated into various food items, including protein powders and cooking oils. Paper and packaging industries use hemp pulp to manufacture materials, and hemp requires fewer chemicals and water in the production of paper materials than traditional wood pulp.

Construction and building materials can be derived from hemp fibres when combined with lime or other binders to create a versatile building material called hempcrete. Hempcrete is insulating, with excellent thermal properties, and is lightweight. It can be used for producing fibreboard, insulation materials and biodegradable plastics substitutes. Hemp also has a place in the biofuels and energy industries, where hempseeds can be processed to produce biofuels such as biodiesel and ethanol. Products such as hempcrete used for sustainable construction and hemp-based biofuels could considerably contribute to reducing carbon emissions and promoting renewable energy sources as we move to becoming a carbon-neutral state. This is a priority of the Andrews Labor government, and increasingly the environmental benefits and costs of an expanded industrial hemp sector are being seen as the way of the future.

A stand-out benefit of hemp production is carbon sequestration. Hemp plants grow rapidly, with high carbon dioxide absorption, as Ms Payne mentioned. During photosynthesis hemp plants capture and store large amounts of CO₂, reducing greenhouse emissions and making it a valuable tool in combating climate change, provided the harvested hemp is used in durable products, thus locking its stored carbon. Hemp aids soil health and erosion control due to its deep extensive root systems, which help prevent nutrient run-off and can even remediate contaminated soils by absorbing heavy metals and toxins. The market demand for environmentally sustainable and carbon-neutral products provides opportunities for growers to explore.

In conclusion, this interest in sustainable practices and the transition to a net zero economy presents opportunities for the expansion of the hemp industry in Victoria. Ongoing research and development efforts can help address existing challenges and optimise the environmental performance of the industry. I reiterate my support for this motion and its referral to the Economy and Infrastructure Committee for further consideration of this fast-emerging industry and the benefits it may generate for our farmers and our state.

Georgie CROZIER (Southern Metropolitan) (16:08): I rise to speak to Ms Payne’s motion that we are debating today on industrial hemp and having this referred to the Economy and Infrastructure Committee for inquiry. There are a number of elements in Ms Payne’s motion that look at the barriers to hemp production, but I will come back to that point. There is a reporting date of 15 November, and I note that that committee has a number of other very important inquiries going on. I would just make this point to those on the committee that those references are already there. There is a local government inquiry, there is a stamp duty inquiry, there are a number of self-referenced ones into the arts and –

Bev McArthur: Gassing pigs.

Georgie CROZIER: Pig gassing – that is right, Mrs McArthur. This committee has a lot of inquiries, and this reporting date of 15 November I think is unachievable. I would ask that the committee look at that if this goes through today, because it is unachievable for that committee to do the body of work that they need to do in those important areas and then take on this one. I make that point.

But Ms Payne asks, ‘What are the barriers?’ and wants to explore those issues. There is one element of the motion that talks about the Victorian government supporting the industry and how that could be done in growing the industry. I make the point that in 1998 it was in fact the former Kennett government, a Liberal government, that led the way as the first jurisdiction in Australia to legalise commercial farming of hemp for non-food products. So those over there who continually criticise Jeff Kennett and what he has done, take note, because he led the way here, and there has been very slow progress in Victoria ever since.

I note that the government itself in 2019 formed an industrial hemp task force. I have just been reading through their report because it basically looked at exactly what this inquiry is looking at. Its terms of reference included:

examine information from key stakeholders on the current state of the industry, issues, barriers and opportunities –

virtually what Ms Payne is asking for –

consider uses of industrial hemp in other jurisdictions and appropriate learnings for Victoria;

examine how the … government can support industry …

again, straight out of this motion. The task force’s words have been put into this inquiry referral, which is somewhat curious. The task force’s terms of reference also included:

examine the regulatory and licencing framework … and

consider any … other matters.

There are certainly some issues here. And I want to make the point that Ms Patten, who sat on that task force, obviously is very close to Legalise Cannabis and is advising them. Where this task force could not get any further, it has come into the Parliament now, and that is why we are debating this motion this afternoon.

I do not have a problem with committee work being done and I do not have a problem with this Parliament doing inquiries into issues. I was curious as to whether the Leader of the Government would be speaking on this motion because she was the Minister for Agriculture at the time and was on the task force. She would have some very good insights. It is quite an interesting report because it talks about the industry snapshot – hemp and cannabis and what they are used for; how the entire plant is used for boiler fuel and feedstock; how the cell fluids are used for other things, and the stalk, the leaves, the flowers and the seeds. I will not go through everything, but it is a very detailed snapshot of how hemp can be utilised. I think Ms Payne made that point about the versatility of the product. She mentioned that around paper.

The motion makes the point that there are six growers with only 169 hectares in Victoria. That is nothing. This task force talks about 200 hectares, so it has gone backwards since 2020. It is not very viable, it seems to me. I note that this report talks about how most Australian commercial production is in Tasmania and that there were approximately 1600 hectares planted in Tasmania with a farm gate value of only $4.5 million. That is seriously nothing. Off the production of 1600 hectares, I am not sure that that is a really good utilisation of land. Those who have worked in agriculture will know exactly what I mean. That is just a very small component. Western Australia had 280 hectares and there were 200 hectares in Victoria, so we are going backwards.

That might be a point that the inquiry can have a look at, but I am concerned about some of the issues raised in the report. I know there were ministerial visits to the United States. Obviously Ms Patten was heavily involved. I think the task force went to Canada, China and Europe, so they did a big world trip on this, and Ms Patten was obviously at the Australian Industrial Hemp Conference. But then we get to the real crux of where Legalise Cannabis is going and that is the cannabinoids and legalising cannabis.

Those of you in the house know I am strongly supportive of medicinal cannabis. I do not support legalising cannabis. I think there are too many barriers still that the police have raised and others have raised, and I am very concerned about the mental health impacts on people. I certainly know too many people who have got very sad and severe mental health issues after using cannabis. Nevertheless, there are some interesting aspects to this task force report that was undertaken by the government. It does talk about regulation here in Australia and here in Victoria. I think that this is probably where Ms Payne is trying to go to in terms of having a look at what needs to be done.

So I make these points in debate today. As I said, I do not have a problem with an inquiry being undertaken, but I do have a problem if it is a backdoor way of looking at legalising cannabis itself for personal use and other uses, which you have been elected into this house to achieve. Mr Ettershank is laughing at me, but I have read this task force report and it has set a few alarm bells off for me. I think that the committee, when it does consider these things, understands what the government has already done in relation to this and where we are going in this endeavour to have further agricultural endeavours. As I said, knock yourself out; if you want to grow hemp and it is regulated and legalised for food sources – or other plant derivatives for paper or whatever – then that is part of an enterprise. Go for your life. But I do have concerns, looking at what is being undertaken in Tasmania and other states and the very limited usage of productive land to grow this. With those words, I will say I wish the committee well, if the motion does pass the chamber, in looking into this issue. It is an interesting look, but I would also urge the committee to look at what the government has already done.

Michael GALEA (South-Eastern Metropolitan) (16:16): I rise to speak on the motion put forward by my colleague from the South-Eastern Metropolitan Region Ms Payne, and I rise to speak in favour of the motion. I also commend her for bringing this motion forward to us. This motion allows us to discuss a significant agricultural and industrial opportunity for economic growth. Diversity in economic production and employment is a hallmark of our state’s economy. Some other economies rely on a single sector or even a limited collection of commodities for economic growth, employment and success. Here in Victoria we have many important industries, including tourism, manufacturing, retail, health care, construction, education, professional services, finance, mining and agriculture.

Within the agricultural industry that diversity is also felt. Grain, horticulture, milk, beef and sheep are top production commodities in the sector. We are the nation’s largest food and fibre exporter, with animal fibre, particularly wool, being one of our most significant exports even to this day. Victoria also produces more milk than all other states combined, with 63 per cent of Australia’s dairy milk produced in Victoria this financial year. This government has provided ongoing and firm support to our agricultural sector and has been committed to exploring the development of new opportunities in the industry.

Hemp constitutes one of several opportunities to cultivate and develop new crops in our state’s agricultural sector, with various employment, export and productive opportunities. I am glad to know that in this space the Legalise Cannabis Party and Labor have been the leading parties looking to the continued and growing prosperity of hemp agriculture in Victoria. Under Labor the future of an industrial hemp industry in Victoria is looking bright.

I note that in 2020, as Ms Crozier referred to, the Industrial Hemp Taskforce, established during the previous Parliament, handed down its report. I note the work of the members of the task force, including Minister Thomas in her previous capacity as agriculture minister and former members of this place, including Fiona Patten and the former member for Mildura Ali Cupper. The task force spent 12 months engaging with industry experts and stakeholders and identified various opportunities and issues that were facing the sector. Opportunities outlined in the report include improving the processing capability, closing knowledge and experience gaps in hemp cultivation, addressing regulatory barriers and creating a more straightforward and accessible marketplace. Challenges include a lack of investment in processing capability, confusion within the industry between hempseed and hemp fibre markets, prohibition on the use of hemp leaf for feedstock and high costs for transport and water.

The terms of reference for the task force were to examine information from key stakeholders on the current state of the industry, issues, barriers and opportunities; to consider uses of industrial hemp in other jurisdictions and appropriate learnings for Victoria; to examine how the Victorian government could support industry development and growth across Victoria; to examine the regulatory and licensing framework for hemp cultivation and hemp products; and to consider any other relevant matters. The task force looked into the myriad uses of hemp, many of which are referenced in Ms Payne’s motion – and referenced even more strikingly and illustratively by her dress today. It is fairly impressive to hear that it actually is hemp. These also included things such as food, animal feed, hygiene products such as soap and shampoo –

Bev McArthur interjected.

Michael GALEA: I am sure you could find many new pieces to wear from the hemp collection as well, Mrs McArthur. I am sure the two of you could have a fantastic day out shopping together – but also things such as cooking oils, bioplastics, semiconductors, ink, paint, fuels, mulch, insulation, cement, papers and various other industrial and consumer textiles.

The task force explored the state of the industry across Australia. This includes the regulatory environment and also farming locations, irrigation practices, yields and growing conditions. I would also note that the growing cycle during the operation of the task force was 2019 to 2020. At that time Tasmania grew most of Australia’s commercial hemp crops, with 1600 hectares compared to, at that time, just 200 in Victoria. In Victoria that 200-hectare production was lower than the 600 hectares in 2017–18, with the decline primarily attributable to low water availability at the time. The task force found that the hempseed was the primary produce from growing hemp in Victoria. The report also discussed the requirement of holding an authority in the Drugs, Poisons and Controlled Substances Act 1981; the number of authority holders increased in 2017, when hempseed was approved for use in food.

There was an investigation into the state of hemp products in other jurisdictions, primarily Canada, China and various parts of Europe, most notably France. The task force meetings included briefings and discussions with representatives from key stakeholders, including iHemp Victoria, the industrial hemp association, the Australian Industrial Hemp Alliance, Textile & Composite Industries Pty Ltd, Australian Primary Hemp, CSIRO Agriculture and Food division, Cann Global Ltd, SuniTAFE SMART Farm, Mallee Regional Innovation Centre, Sunraysia Community Health Services and Agriculture Victoria.

So this motion does relate to many of the issues that were touched on in that report, but an inquiry by the Economy and Infrastructure Committee could update and build upon the work of the industrial hemp task force. It would also benefit the future of the emerging hemp industry in Victoria. The Agricultural Legislation Amendment Act 2022, introduced and passed by the Andrews Labor government, included increased support for the cultivation of hemp crops and further industrial uses of the components of hemp cultivation. The legislation included provisions standardising the maximum allowable levels of THC, creating consistency with the other states and territories in Australia. The amendments also widened the eligibility criteria for licence applications, strengthened the fit and proper person test for applicants and made other changes to improve the administration and enforcement of the act.

In the current growing season, six authority holders are growing commercial crops, covering an area of 169 hectares. Returning to the impact of the industrial hemp task force, a significant achievement was the facilitation of a memorandum of understanding between Australian Primary Hemp and SuniTAFE in Mildura. The partnership, established under the SMART Farm project, enabled research and development into the suitability of low-THC hemp varieties. This is essential research, as instances in which a crop’s THC level exceeds the legislated maximum would necessitate the destruction of that crop, as it has in Tasmania when that has occurred.

The motion also touches on the ability of hemp to be used in carbon sequestration. There is a comparatively high carbon sequestration rate for hemp compared to other plants. Some estimates are that industrial hemp can absorb as much as 22 tonnes of CO₂ per hectare under appropriate conditions. Biomass production occurring from the conversion of atmospheric carbon through photosynthesis enables the sequestration. In addition, due to the capability of hemp to grow up to 4 metres in 100 days and grow a second crop in a year, hemp is an exceptionally fast crop for agricultural carbon sequestration as well, which is potentially very exciting. Compared to forests, which take years and decades to mature, the ability of hemp crops to provide a more frequent carbon capture is evident. That being said, effective sequestration requires that the agricultural yield be used in sustainable and longer lasting products to enable that longer term storage of the carbon that has been captured.

The beneficial use of hemp crops creates a viable opportunity for a substantive expansion of the hemp industry. As we reach and work towards net zero emissions, there will be an increased and long-term demand for carbon-neutral projects and carbon sequestration. Hemp and forests could provide a comprehensive mix of this planting.

Hemp is still a relatively new industry in Victoria and indeed in the nation. It is still in its infancy across the agricultural sector. However, it does have the burgeoning potential to contribute to this industry, the broader economy and employment, and it may play a big part in our response to climate change. Just over six years ago, in 2017, the Australia New Zealand Food Standards Code was amended to permit low-THC hemp whole seeds to be sold or used as an ingredient in food. To an extent, this was the launching pad for growth in the hemp industry across Australia. Tasmania, in many ways – not least of which has been gross yield – already have the most developed hemp industry, having passed their Industrial Hemp Act in 2015. Simply put, this gave them a head start. This proposed inquiry would allow us to explore further how the Victorian government can support and benefit from growth in this industry in our state, and for those reasons I support this motion.

Bev McARTHUR (Western Victoria) (16:26): I rise to speak on this motion. I find it curious that the Legalise Cannabis Party found it impossible to support the roads motion going to the Economy and Infrastructure Committee because they thought they only knew about it a couple of days ago – as I understand it, on Thursday. It is the same amount of time ago, I understand, that we learned of this motion – Thursday – even though the roads motion had been on the agenda since December. Nevertheless we are asked to support the motion that we have just learned about. I also find it curious that the Labor Party, and I imagine the Greens and I am sure the Animal Justice Party, if given a chance to vote, will be happily supporting the reference too.

I am on this committee. It is getting a bit overwhelmed with inquiries. But you have seen fit to send another one there potentially, even though we have got this 2020 industrial hemp update from the industrial hemp task force. It seems like we are just reiterating what has already been done. Are we going to have an inquiry each year to keep updating the state of the nation on hemp, potentially? I am particularly interested in point (2) of Ms Payne’s motion, which:

further notes that while there has been a rapid expansion in industrial hemp production nationally, as of April 2023, there are only six growers cultivating a total of 169 hectares in Victoria …

It is clearly not viable. I tell you, as a farmer, if there is an opportunity to invest in agriculture, we will do it. Obviously the farmers who know about agriculture have realised this is not a viable activity. There is no way, if we go to point (f), that ‘the Victorian government could support industry development’. There is no way the taxpayers should get involved in supporting this fledgling operation. If it is viable, the entrepreneurs will be in it like a flash and they will be making money out of it. You will not need government investment at all, and you certainly should not be asking the taxpayer for anything. We could probably short-circuit the whole thing on the committee – just cut and paste this whole document.

A member interjected.

Bev McARTHUR: Oh, sorry, it is a prop. I am sorry, Acting President. Poor Mr Galea got pulled up for his prop before. I thank you that you did not pull me up.

It is like: we have had the report; can we just cut and paste the whole thing and be done with it? You could probably shorten the time of the whole inquiry. A week would see us out and we could get on with the gassing of pigs, the arts industry and whatever else we are potentially doing on the committee, where we are working way too hard. There is nobody here from that committee, is there? No, Mr McIntosh is on it. Acting President Berger is on it. We are overwhelmed with the work, aren’t we? And here we go, we have got another one lurching into our lap.

But I make the point that we are very generous on this side of the house. Even though you do not support anything we put up, we apparently are supporting this motion. I am sure you will not need any government intervention. If it is a viable operation, the farmers of Victoria will be in the market in no time. I will just refer to Ms Patten’s work. It is great that she is working for you at the moment, and she has obviously brought this forward. Next time just a bit of quid pro quo: if we are supporting your motion, you could just get on board and support ours too.

Sarah MANSFIELD (Western Victoria) (16:31): I rise to speak today in support of the motion from Ms Payne in relation to an inquiry into the industrial hemp industry here in Victoria. Across the country Greens MPs have long been advocates for removing regulatory barriers to hemp production, so I am pleased that Ms Payne has moved for this inquiry with the view towards supporting industry growth and development. Compared to countries such as Canada and China, Australia has been slow to accept hemp’s potential as a versatile and climate-friendly crop, especially in its parallel applications to resource-heavy crops such as cotton. Although hemp has been legalised in Australia since 2017, the industry has not been given the opportunity to catch up in areas such as research and development, and the industry remains in its infancy.

Hemp has applications across many different industries but is misunderstood as a crop. Most people are not aware that the particular cannabis plant used to grow it contains less than 1 per cent THC. We have heard today already about the many benefits of hemp – of the hurds, the bast and the seed – and of the applications in textiles, biofuels and our food industry, so I want to take the opportunity to touch briefly on the opportunities that this plant provides us as an investment in regenerative and sustainable agriculture for our farmers. The Greens have said it before, but it is increasingly imperative we leave a legacy of supporting farming practices that care for and regenerate the land. Regenerative agriculture brings together a range of farming practices that improve soil health and enhance land productivity. As a crop with a deep root system, hemp naturally fortifies soil microbes and prevents erosion, giving it the potential to contribute to regenerative practices already present in Victoria. Furthermore, hemp is well regarded for its role in carbon sequestration. Research suggests that hemp may be twice as effective as trees at absorbing and locking up carbon through photosynthesis. Carbon sequestration and soil health are just two positive aspects of hemp, and gaining a more robust understanding of hemp’s environmental benefits is therefore a very worthy element of this inquiry.

Local farmers are of course an important cornerstone of our economy and the heart of our regional communities. They are the people who have chosen to live a life that is intimately linked to the key cycles of our ecosystems: growth, yield and regeneration. Supporting farmers with the resources to make informed choices about how to sustain this regeneration will keep our land healthy for generations to come. I hope that we can all agree in this chamber that supporting regenerative practices in our agricultural industry will strengthen our ability to locally produce the raw materials we need in daily life, including the clothes on our backs, because as our climate becomes hotter and the costs of importing and manufacturing on the global market soar, an investment in Victorian supply chains that are kind to our environment is an absolute no-brainer.

I hope that the members of this chamber across all sides of politics can acknowledge that an inquiry such as this which has been raised today would provide an opportunity for us to be leaders in sustainability in this country’s agricultural industry. The Greens welcome the opportunity for a hemp inquiry and are pleased to support the motion.

David ETTERSHANK (Western Metropolitan) (16:34): It gives me great pleasure to speak on motion 70 introduced by my Legalise Cannabis Victoria colleague, the sartorially splendid Ms Payne. It is high time that we explored the economic and environmental benefits –

Members interjecting.

David ETTERSHANK: It is high time – for the peanut gallery – we explored the economic and environmental benefits that industrial hemp can bring to Victoria. Industrial hemp has enormous potential to replace unsustainable and damaging raw materials across any number of industries. As a food, as fibre and as a cellulosic source for paper, building materials and suchlike, it offers many opportunities for Victorian agribusiness innovation. Hemp provides an alternative raw material source to many existing unsustainable materials and, in so doing, helps build sustainable consumption and production patterns based on a circular economy, consistent with the UN’s sustainable development goal number 12, ‘Responsible consumption and production’.

Hemp’s environmental credentials are impressive too. It is biodegradable and capable of breaking down completely in three to six months. It has uses in land regeneration and remediation of contaminated environments, and of course, as has been discussed previously, hemp’s rapid growth enables it to sequester carbon at about twice the rate of your average forest.

Hemp is well suited to Victorian growing conditions, tending to thrive in the same soils and locations as wheat, barley, corn, carrots and potatoes, and it offers farmers an alternative crop that helps protect them against monocrop price fluctuations. This is of real benefit to our primary producers.

The economic benefits of industrial hemp are broad, but a good place to start is the revenue that production would bring to Victoria. To give you an idea of the crop value of industrial hemp, 1 hectare of industrial hemp can produce up to 10 tonnes of raw hemp. Industrial hemp has three components: the outer bast fibre is primarily used for textiles and ropes; the woody inner hurd is mainly used in building materials, paper and increasingly in plant-based plastics; and the seeds are an excellent source of food and oil. After processing, bast fibre is worth about $6000 per hectare, the inner hurd will earn about $5500 per hectare and seed is about $3000 per hectare, so producers could earn around $14,500 per hectare, which is double that of cotton with less than half the water and half the production costs. That is great news.

But we have a problem. Processing infrastructure is essential for industrial hemp, as it is with most products. The process required by producers to break down the plant into marketable components needs specialised equipment to do the job, and that equipment needs to be located proximate to the hemp-producing region to make it viable. The current state of affairs is we can grow hemp, although we are getting our arses kicked by Tasmania. But we can certainly grow the stuff, and we can chop it up and we can bale it. But to refine that raw material to actually add value to the product, we are currently mainly exporting it offshore for processing and then shipping it back here, exactly the same way we deal with our timber pulp processing. It defies logic, and it is certainly not in the best interests of Victoria or Victorians. If we are to create a viable hemp industry that creates long-term, well-paid employment and that benefits our primary producers and our regions, we need to build the infrastructure to process industrial hemp here in Victoria. We also need to be actively identifying and capitalising value-adding downstream manufacturing, again to create good jobs that are well paid, particularly in regional and rural Victoria.

With an early exit from native logging at year’s end, we have a unique opportunity for industry innovation and transition and the development of an alternative for paper pulp that the state should seize now, starting from the base of a well-considered parliamentary inquiry. One of the desirable outcomes of this inquiry would be the formulation of an industry plan for the growth and development of an industrial hemp industry, a plan that combines all facets of the industry, from research and development to agricultural production through to manufacturing and sales.

Bringing all these threads together will require a long-term vision and government support. That is where we as a house come in. Internationally the market for industrial hemp is currently at $11 billion per annum and is expected to grow to $27 billion by the end of this decade. With government support we can develop an industry that adds value for our farmers, creates much-needed jobs in our regions and increases Victoria’s export earnings, all while helping Victoria meet its emission reduction targets.

I would like to pick up a couple of points that were made by Ms Crozier in her contribution, first of all the suggestion that this might be a back door to legalisation. For too long industrial hemp has been sort of like the victim of a drive-by shooting, caught in the crossfire of the prohibition on cannabis. Meanwhile, Victorian farmers are keen to get a foot into this fertile international market, and it is now time that we give Victorian hemp a chance to thrive rather than struggling with the current cumbersome regulatory framework. Can I say that this is not simply the view of Legalise Cannabis Victoria; this was certainly the impression we got when we met with Ms Germano, the president of the Victorian Farmers Federation. Secondly, Ms Crozier, I also want to make the point – and I think this is a really important point in terms of this conflation of medicinal cannabis or adult-use cannabis with industrial hemp – that these are very, very different types of plant, and to be able to grow industrial hemp it has to have less than 1 per cent tetrahydrocannabinol. In other words, you could smoke a hectare of industrial hemp and you would get none the higher for it. You may die of asphyxiation, but you certainly would not get stoned. Again, I talk about this sort of drive-by mentality that hemp is cannabis is whatever –

Georgie Crozier interjected.

David ETTERSHANK: Yes, that is where you were going.

The second thing is with regard to the interim report, and I think the important word here is ‘interim’; it is just that. It is an interim report, and the process of the production of that report was gutted by COVID. So the report, the task force work, was never completed, and the department has – and we have met with them – no intention of bringing that report to any finality, the task force work on that. So the process that we are proposing is not to duplicate the work of the task force but rather to update the process and to finalise it – to actually come up with some good working recommendations to address the state of the industry.

In conclusion, I would suggest and would commend to the house that this is a proposition worthy of full consideration, and I urge all of those in this place to lend their support to this inquiry. I commend the motion to the house.

Aiv PUGLIELLI (North-Eastern Metropolitan) (16:43): I rise today to support this motion and to welcome the opportunity that industrial hemp brings for Victoria, and I also wish to acknowledge the contributions that have been made in the debate before me, acknowledging the work that the Parliament has done on industrial hemp but also now acknowledging the opportunity that we have to move forward. Now is the time for our state to move beyond the misconceptions of the past and to embrace hemp as the amazing fibre that it is. It is such a shame that the stigma associated with cannabis, as mentioned by Mr Ettershank, has meant that the industry is really far behind where it could be. Industrial hemp holds enormous utility and potential for the creation of climate-friendly jobs in the future as well as great opportunities for regional development and regenerative agriculture, as my colleague Dr Mansfield has already covered. The versatility of industrial hemp cannot be overstated, and by fostering the growth of the industrial hemp sector we can create a multitude of jobs that contribute to a sustainable economy.

Many of you in the chamber will remember when I spoke recently of attending Groovin the Moo, the music festival out in Bendigo, surrounded by young people. Something that I noted quite particularly in attending that event was that they had a stall distributing hemp clothing products, a range of different products that were entirely made of hemp. This is the thing: young people get it. We understand that we have products like this that can be looked into, can be expanded to answer questions that are posed by the climate crisis and jobs of the future in our regional areas, and we are on board. It is time for the Victorian Parliament to catch up.

As the world grapples with the urgent need to combat climate change, the cultivation of industrial hemp with its carbon-capturing properties becomes all the more crucial. By expanding hemp production we can help to reduce greenhouse gas emissions and mitigate the impacts of climate change. Despite the promising potential, the current industrial hemp industry in Victoria remains sadly underdeveloped, and this inquiry would provide important insights into the industry’s capabilities – and that I would absolutely welcome.

By capitalising on the vast potential of industrial hemp we can create new jobs, reduce carbon emissions and pave the way for a greener and more sustainable future. I think our community, and particularly our young people, expect that of us.

Rachel PAYNE (South-Eastern Metropolitan) (16:46): I just want to say thank you to everyone who has made a contribution today and probably just go through and summarise some of the fantastic contributions that we did receive.

Particularly my colleague Ms Ermacora really highlighted in a fantastic summary the nutrient benefits of hempseed. I do suggest, if you have not tried it yet, that you make sure you do put it in your smoothies. It is very, very good for you – very high in protein. She also went through the building materials and, as we discussed, hempcrete and the sustainability of the future of hemp.

Just in response to Ms Crozier’s comments – and I know my colleague David Ettershank has made some comments, and I totally agree with you. You have hit the nail on the head in the way of ‘off the back of the task force’. There has been no indicator that we have ever hidden that there has already been a task force, but as my colleague Mr Ettershank highlighted, that task force only produced an interim report, then the task force was dissolved. There is no question that that work has created such a body of work, and we obviously want that work included, but we just need it finalised so that we can get to a position where we are looking at how we can create legislative reform to make this industry flourish.

Mr Galea, I would love to thank you – a colleague from South-Eastern Metro – for reviewing the future direction of hemp and also highlighting that hemp is in its infancy. We do have an opportunity here to really grow the industry, and I believe that this inquiry will, off the back of the work of the task force, come to that conclusion.

Mrs McArthur, interestingly, obviously had a few things to say, but as I can reiterate, the Victorian Farmers Federation do support it. There are a lot of farmers out there very interested in hemp, but their biggest complaint is that the regulation is too strict, it is too complicated, there is too much red tape and there is too much burden on them trying to activate their excitement in this industry. I also just make the point that we did discuss this with colleagues of Mrs McArthur, and it was taken to the party room and the shadow minister replied, so I do know that there was that dialogue there.

Ms Mansfield highlighted the growth, yield and regeneration and the importance of regional Victoria being front and centre in this conversation, and obviously the environmental benefits are something that we can all agree on on this side of the chamber.

I would also like to thank my colleague Mr Ettershank, who talked about the specialised equipment for production that we need and highlighted the fact that we are exporting raw materials for production. Again, there is a real opportunity here for there to be a viable industry, and there is a lot of interest in investment in Victoria.

Finally, Mr Puglielli, I would like to also thank you for your contribution and for highlighting the stigma that hemp is subject to and the fact that young people do get it. We do. We do want this to be a part of our future.

Thank you, everyone, for your contributions. I appreciate the support.

Motion agreed to.