Wednesday, 15 May 2024

Bills

Hemp Industry Bill 2024

Second reading

Debate resumed.

David ETTERSHANK (Western Metropolitan) (14:04): I think when we stopped for questions I was just regaling the house with how delighted Minister Shing was at the hemp Powerhouse building in Mildura and about the extent of the current residential sector development using hempcrete. I just want to note that there are an estimated 300 residential dwellings in Australia that have used hempcrete. Barriers like the cost of specialised labour, the limited number of people practising hemp masonry and, as I discussed before, a lack of affordable and local raw materials make the growth of this sector extremely difficult. This is why even just having a conversation about the hemp industry is important. Education and encouragement can lead to more Victorians exploring how to use hemp and the job opportunities that come with it. We have seen in Victoria that more people being involved in hemp masonry has led to innovation in the prefabricated hemp brick space. This has substantially reduced prices. In the case of one provider it has increased their job list from 10 builds over four years to four builds in just six months. In our conversations with relevant members of Parliament on this bill it was clear that we all had a shared desire to see the hemp industry in Victoria grow and to cut unnecessary red tape. This was doubly so in our discussions with the Victorian Farmers Federation. There is an appetite for deregulation but also a sense that we have been here and done this, so what will change over time?

Before I move on I would just like to pick up comments that were made previously by Ms Terpstra and also Ms Watt regarding the question of the fit-for-purpose nature of the current arrangements. It was suggested that the current regulatory framework is quite adequate, sitting as it does within the Drugs, Poisons and Controlled Substances Act 1981. If I can quote from Ms Emma Germano, the president of the Victorian Farmers Federation, she said yesterday:

We need government to get out of the way and give farmers the opportunity to harness the full potential of hemp cultivation and create new opportunities for our regional communities.

…

The laws regarding industrial hemp are not fit for purpose and create an ongoing stigma that links the crop with illicit drugs.

There is an appetite not just within the farmers federation but across the industry for deregulation in the hemp sector. I guess the question is: what will change this time if this legislation moves forward? Can you imagine if we just gave up every time we tried something once in this place? I suspect we would have a pretty lacklustre legislative agenda.

Bills are always more than words on a page. They are a message about what the government cares about, they start a conversation between industry and stakeholders and they shed light on what needs to change. When we are dealing with something like industrial hemp, this becomes incredibly important. The tentacles of regulatory burdens extend far and wide across jurisdictions and across production, processing, manufacturing and exporting. We can all agree that hemp is incredibly useful, so why do we continue to stifle this industry? Well, the answer is: a dash of stigma, a sprig of over-regulation, a touch of no standalone act and a drop of insufficient government support. And what have you got? You have got the current regulatory environment that industrial hemp suffers in Victoria.

This bill attempts to alleviate this suffering by reducing stigma by updating outdated terminology; increasing the maximum hemp licence term from three to five years; clarifying requirements, checks and appeal processes; enabling greater research and development; and removing inspection and licensing fees. We know that overseas the hemp economy is a multibillion-dollar industry and growing rapidly, and when we consider both the agricultural production and the downstream value-adding processing, that only expands our sense of just how dynamic this industry is, except for in Victoria.

There is also a bit of an evil circle that confronts the sector. On the one hand growers lament the draconian and antiquated regulatory framework and also the lack of processing facilities for downstream processing. On the other hand manufacturers and venture capitalists lament the lack of supply of raw materials as a confounder to investing in the all-important downstream value-adding processing. So in this chicken-and-egg situation, how do we break the cycle? There is no one simple solution that will magically actualise the potential of the hemp economy, but there is one very obvious point to start to break that evil circle: free up the constraints on supply and let the raw materials flow into the market. That is exactly what this bill seeks to do. Let the farmers do what farmers do best. Let them grow crops and let us stop making them operate in an environment that was primarily designed to regulate crops like opium poppies. We cannot solve this industry’s woes in a single bill – we know that. There are complex layers of regulation and state and federal laws that interact here, but perhaps we can start conversations and we can look forward to seeing the government’s response to the final report of the inquiry into the industrial hemp industry in Victoria.

I would like to take this opportunity to thank the many industry stakeholders who came in yesterday and participated in the show up in the Federation Room. I would also like to thank our many colleagues, both in this chamber and in the other place, who came and checked out what was on show and learned a bit about the sector. Your participation is greatly appreciated. A bill like this is just the beginning, and we look forward to many more opportunities for discussion and collaboration with the government. Let us sow the seeds for Victoria’s future and make the hemp industry all that it can be.

Jacinta ERMACORA (Western Victoria) (14:11): I am pleased to speak on the Hemp Industry Bill 2024, and I thank Ms Payne and Mr Ettershank and the Legalise Cannabis Party for bringing this issue forward. I believe it was back in May 2023 that I last spoke on the hemp industry when we had a motion on creating an inquiry into industrial hemp. Back then I acknowledged the hemp industry was rapidly growing, both nationally and internationally. At that time I was a member of the committee that investigated the issues and opportunities that are currently within the Victorian hemp industry, and during the hearings we heard from stakeholders about the opportunities the hemp industry offers in Victoria.

The Allan Labor government sees the growing interest in the hemp industry in Victoria and what that may mean for opportunities within the industry and the agricultural industry particularly. This bill does pre-empt the response by the Allan government in terms of a response to the inquiry outcome. The government acknowledges the growing interest in the industrial hemp industry in Victoria, and this represents an exciting and growing opportunity for local businesses and jobs. The government will have more to say in this space in due course.

As Mr Ettershank mentioned, I visited the hemp industry showcase here at Parliament yesterday, and it was great to see how hemp can be used in the building, clothing, skincare and food industries. In the building industry alone, hemp has a number of desirable qualities. One of the stallholders was promoting its high thermal insulation – up to 80 per cent in energy savings; its fire, termite, mould and pest resistance; and breathable walls. Hemp provides design flexibility. It also has of course, as has already been discussed, a negative carbon footprint and provides a healthy living environment. I did ask about the glues that hold all the hemp pieces together, and they are essentially made from hemp oil, so it is my understanding that even the technology used in manufacturing products out of hemp is not toxic like some glues can be. Also, the buildings can be inherently airtight and have a high acoustic performance.

I noted also that the hemp clothing not only looks and feels very comfortable but looks good, especially the examples of work and school uniforms that were on display. In fact it was hard to tell the difference between hemp and linen – I am not sure if others found that when they were actually touching the materials. The potential for hemp in Victoria is clear to see.

If I can return to the practicalities of this bill, what is being discussed today is a standalone act for production and cultivation of hemp. But if a standalone act were to be considered for the hemp industry, it would not be likely to achieve any really great benefit over the current frameworks. I know this is a point of contention, and I acknowledge and accept that there is not universal agreement in this space, but Agriculture Victoria has indicated that the current framework is functioning well and that the provisions in the Drugs, Poisons and Controlled Substances Act 1981 are in the most part consistent with other jurisdictions.

AgriFutures Australia identified industrial hemp as a potential high-growth industry, and the AgriFutures Australia emerging industries program is supporting the hemp industry in Australia with a $2.5 million program focusing on research into improved hemp seeds and varieties, production methods and the development of hemp products. AgriFutures began conducting hemp trials in several locations, including in Hamilton in my electorate. Over the 2022–23 growing season trial a variety of hemp seeds were trialled, with grain yield ranging from 1.7 tonnes per hectare to 2.66 tonnes per hectare. They identified that a further planting season was required to strengthen the robustness of that data.

Significant work is already being undertaken to ensure that Victoria’s expanding hemp industry has quality data, more varieties of seed and higher yield seeds for cultivation. Victoria’s agricultural industries are at the forefront of Australian production, and hemp may one day be one of those major contributors. Victoria contributed significantly to the economy through these industries. If we think of other fibre industries in Victoria and other agricultural industries in Victoria, there is our wool fibre industry. Agriculture Victoria in January 2023 stated that Victoria’s wool production was worth $717 million. Victoria is the second largest producer of wool, representing 28 per cent of Australia’s tonnage. You would not imagine that, because you would think that it would be happening all through New South Wales, where it is a little bit of a warmer climate, but I think it is that fertility of our land and the high productivity and stocking rates that allow for such high production of wool.

Victoria’s grain industry exported a total of 8.6 million tonnes of grain, worth approximately $4.4 billion, and according to Global Victoria’s food and fibre export performance report for 2022–‍23, Victoria represented 24 per cent of the total exports by value of agricultural industries. This is the highest in the nation. Victoria’s agricultural industries are high-performing and fast-growing industries, so the hemp industry has the potential to play a significant role in Victoria’s agricultural future. Hemp is a versatile plant with uses for all of its parts along with rapid growth. In addition to the uses I mentioned earlier, hemp can be used as kind of a copy of concrete – or ‘hempcrete’, as Mr Ettershank referred to – and also as a biofuel source in conjunction with its strong carbon sequestration capabilities and its soil regeneration properties. It sounds pretty awesome, actually. Perhaps we should all have hemp in our backyards – whoops! It certainly has a place in Victoria as a multi-use staple.

Currently there are only six industrial hemp growers in Victoria, cultivating around 200 hectares of hemp; however, with strong interest in the industry, it is clear that it has future growth potential. In 2022 the Victorian Labor government passed the Agriculture Legislation Amendment Act 2022 to support the cultivation of hemp and bolster industrial usage. This government acknowledges and supports with its current legislation the many uses of hemp balanced with crime prevention and safety oversight of cultivation. The current legislation, along with licensing, is required to prevent criminal activity in the cultivation and processing of low-THC cannabis. The industry as it is right now requires oversight by inspectors to ensure that hemp farmers are growing low-THC plants, with crop samples submitted for analysis required to not exceed 1 per cent THC.

There is no doubt that there are many uses for hemp, and the interest in the industry here in Victoria is growing. It is a space that is in its infancy whilst key groups gather data, research crop yields and develop economical seed varieties. I thank Ms Payne and Mr Ettershank and the Legalise Cannabis Party for their work in this space. This is an exciting growth industry, and the Allan government will have more to say in the future.

Renee HEATH (Eastern Victoria) (14:21): I rise to speak on the Hemp Industry Bill 2024. Last year I was delighted to be part of the inquiry into the industrial hemp industry in Victoria, as part of the Economy and Infrastructure Committee. I have said this to Ms Payne before, but coming into the inquiry I was closed off to the idea. I definitely had a preconceived idea in my mind, and I really thought it was a concept that I would not support at all –

Members interjecting.

Renee HEATH: I am not sure what the laughing is over there, but I will take it as a compliment. But regardless, as the witnesses came through and I began to speak to and hear from different people, I thought, ‘Wow, this really is an industry that I think is underestimated and has a lot of potential in it.’ We got to learn about the barriers, the issues and the opportunities in Victoria. We got to look at what we are doing in Victoria as opposed to other jurisdictions in the country and some opportunities that we are currently missing out on. I was very impressed by the agricultural opportunities and the environmental benefits that could be had from this crop.

One of the important things to note is what hemp is exactly, because even that alone can have some misconceptions around it. So what is hemp? It is a variety of cannabis with low levels of THC, and that means that it does not have the psychoactive effects associated with the prohibited cannabis varieties. It is legally defined as low-THC cannabis when the THC levels are lower than 1 per cent.

There is probably a lot we can talk about in this, so what I thought I would do is talk about some areas I am not comfortable with or what I would perceive to be risks and then I would talk about areas that I am absolutely comfortable with and what I would perceive to be opportunities. I am sure that Mr Ettershank and Ms Payne will be happy to know I have got two areas that I think could be a possible risk and five that could be potential opportunities.

I will just start first of all with what could be perceived as risks. Some of the submissions that we got in said that potentially there could be some risks and concerns to stock feed, especially the effects that it can have on paediatric neurological development. A risk assessment done for Health Canada – I was going to say ‘Health Cannabis’ – states:

New food products and cosmetic products made from hemp … pose an unacceptable risk to the health of consumers.

It also says that hemp products may not be safe, because even small amounts of THC may cause developmental problems. Those most at risk, the study says, are children exposed in the womb or through breast milk or teenagers whose reproductive systems are developing. It says:

Hazards associated with exposure to THC include acute neurological effects and long-term effects on brain development, the reproductive system and the immune system …

I just want to acknowledge that and say that that is something that has been documented. If that risk is there, which we will find out, absolutely – and there is some data – I think our response should be to just make sure that people have choice and that they know that things are labelled well. If there are different cosmetics, for instance, or foods that contain hemp, I think it is a good idea that they state that.

The second area that could be perceived as a risk and that the committee heard there are some risks associated with is stockfeed, like I said. Emma Germano, the president of the Victorian Farmers Federation said – and I thought this was actually quite good – that hemp is not the best placed feed for animals. However, it could be a very good backup – if something were to happen and there was a shortage, it could provide quite a good backup. Some studies that we heard about in the committee and in the public hearings suggested that the THC would go through into the flesh of the animal and it could have some effects on human consumption. Those are the two areas from the committee that I thought could be and that really stuck out to me as potential risks.

Now I want to talk about the areas that I believe really create an incredible opportunity. The first one is textile use, and Ms Ermacora spoke about it a little bit before. The committee heard a lot about different businesses, and one is the business of a lady who works for Ms Purcell who has an incredible business in sustainable fashion that uses hemp to create beautiful fashion products. It can offer a really lovely substitute to other fabrics. I think her name is Emma, and she is the founder of what is called Collective Fashion Justice. She told the committee that hemp can be utilised as a direct replacement for cotton, wool and fossil fuel based fabrics. I thought, ‘Well, that’s absolutely fantastic,’ and when I began to look into it, there are a lot of people that are choosing more sustainable fabrics to use to make clothes with.

It actually reminded me of what I think is a bit of a funny story. I was talking to a couple recently. I do not know if this is a good thing or a bad thing, but one of the witnesses had bragged that there are such good microbial agents that he only has to wash his clothes every three weeks, and I thought, ‘That is fantastic.’ It reminded me of a story. There was a married couple I was talking to, and I was actually telling them about that. She was doing a course at Marriage Gym, which is about creating a healthy, strong marriage. They talked about different little tricks that you could do, and one of them is hiding little notes in a lunch box and in different places. Her husband went camping, and he had hemp socks. She had put a little note in his hemp socks and he never thanked her, and she was so offended by him. She finally, after about three days of him being back, confronted him. She said, ‘Why didn’t you thank me for the note?’ He said, ‘I didn’t see the note. Where did you leave it?’ She said, ‘In your socks.’ And he said, ‘I didn’t change my socks.’ But the antimicrobial and anti-whatever agents are so good that it is a fantastic option for textiles and for different clothes.

The next one I am going to talk about I was most impressed with, and that is its use in building and construction. A witness brought in some amazing hempcrete bricks. This is not something new. In fact in history a lot of fantastic, beautiful buildings were actually built with hemp. Mr Ettershank spoke about how to make it, and he would have described it a lot better than me. But it is a fantastic replacement. It is a lot more energy efficient in that you will not have to keep using your aircon as much and your heating as much. If Labor stay in and we continue with this cost-of-living crisis, you will all wish you had hemp houses so they could be more efficient. They also serve to store captured carbon; they provide amazing thermal and noise insulation; they are fire resistant, which I think is fantastic; and they are mould resistant. They look beautiful. I saw a photo of a lady who had her whole house made out of hemp. It is extremely versatile, and you can construct a house a lot faster using hemp than traditional, more common materials that we use now. They are a lot lighter, so they are easier on the builders and better to use.

The third area that I thought has real potential is with the transition away from plastics in packaging and their use to store food. There was another witness that came in with a whole range of different cups, little takeaway containers, that were completely biodegradable, and I thought they were fantastic. That is a really good substitute for the different synthetic, petroleum-based plastics that we have right now, which we are really transitioning away from. They were really good. Like I said before with the clothing, hemp has very good antibacterial properties, so they are a lot safer and a lot better and your food could potentially last longer in it. So that is a really great thing that could be used.

The fourth reason, and I hope I have got my numbers right, is the carbon sequestration. It is very good for the environment. We heard a lot of evidence about how, because of the quick turnover and how fast you can grow hemp, it is really just good for the environment in general.

The last area that I want to talk about, and this is one that is interesting for me, is that one of the recommendations was that hemp could potentially act as a replacement for the native timber industry. I kept this one until last because this is one that has been an absolute bee in my bonnet. I think that most people, if they listen to any of my speeches, would be aware that Labor ripped the guts out of my region when they closed the native timber industry. I know some people will not agree with my view on this, but this is something I am extremely strong on. The native timber industry for generations provided strong, stable employment for people in my region. A few facts about it: 94 per cent of our native forests were locked up in parks, water catchments and forests. That means that 6 per cent of the native forests were able to be harvested. Of that, only 0.03 per cent were able to be harvested each year, and those trees that were harvested straightaway got replanted. With that, when those trees regrew they stored more carbon. This is something that was very sustainable. In fact the UN says that you need to have a native timber industry if you want to have a healthy and clean environment.

Regardless of the facts, Labor shut this industry down anyway, and it really has hurt my community. In fact it is estimated that in Orbost in my community 40 per cent of people were employed by the native timber industry. I personally spoke to some who had been in that industry and their families had for four generations, and the whole idea that what we were doing was going in and just ripping out forests is not true. The area that they were harvesting and the area that they were using were areas that had been replanted after the 1939 fires. The whole narrative I believe was misleading, and it is something that has been shut down five years early and has left my community absolutely shattered. This last one that said hemp, for the native timber industry, maybe can be a replacement. Look, you can make a lot of things out of hemp. It is an incredible plant. You can use absolutely every part of it. Nothing goes to waste. But it will not replace an industry that has supported thousands and thousands of people in my community, that has provided stable and reliable employment for thousands and thousands of people in my community. Now that it has been ripped out, the guts have been ripped out of those communities, so I just wanted to say that.

But I commend the bill to the house. I want to thank Mr Ettershank and Ms Payne for doing quite an amazing amount of work and also respectfully trying to convince us that there are maybe some good things about the cannabis plant. I will put on record that they are not all good things with the cannabis plant. But thank you very much, and we will see what happens next.

Aiv PUGLIELLI (North-Eastern Metropolitan) (14:35): I move:

That debate on this bill be adjourned until later this day.

Motion agreed to and debate adjourned until later this day.