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Cannabis Campaigners' Guide News Database result:
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CANADA: Legalize Marijuana, Fraser Institute Advises
Eric Beauchesne National Post
Wednesday 09 Jun 2004 LEGALIZE MARIJUANA, FRASER INSTITUTE ADVISES 2-Billion Dollar Tax Source: Group Says Move Would Seize Control From Criminals OTTAWA - Marijuana should be legalized and then taxed like any other product, says a study by an economic think-tank. The Fraser Institute estimates such a move would easily generate more than USD2-billion a year in additional tax revenues. All that would really change is that governments, rather than criminals, would enjoy the spoils, argues the study being released today by the Vancouver-based institute. The potential tax revenue is based on the study's estimate that in British Columbia alone, the annual marijuana crop, if valued at retail street prices and sold by the cigarette, is worth more than USD7-billion. "Using conservative assumptions about Canadian consumption, this could translate into potential revenues for the government of over USD2-billion," the study states. "In British Columbia -- as in other provinces, notably Quebec and Ontario, it is a significant crop that fuels organized crime." Study author Stephen Easton, professor of economics at Simon Fraser University and a senior fellow at the institute, estimates there are as many as 17,500 marijuana grow operations in B.C. alone. Marijuana is widely produced and about one quarter of Canadians admit to having used it, the study says. As such, the broader social question has become not whether to approve or disapprove of production, but rather who should enjoy the spoils. "If we treat marijuana like any other commodity, we can tax it, regulate it and use the resources the industry generates rather than continue a war against consumption and production that has long since been lost," Dr. Easton said. "It is apparent that we are reliving the experience of alcohol prohibition of the early years of the last century." In British Columbia, indoor marijuana cultivation and consumption appears to be higher than in the rest of Canada, it notes. The most striking difference is that only 13% of offenders in the province are actually charged while that number climbs to 60% for the rest of Canada. In addition, the penalties for conviction in B.C. are low, it said. Fifty-five per cent of those convicted receive no jail time. While police resources are spent destroying nearly 3,000 marijuana grow operations a year in B.C., the consequences are relatively minor for those convicted, it says. The industry is simply too profitable to prevent new people moving into production and old producers from rebuilding. A modest grow-operation of 100 plants generates USD80,000 a year in gross revenues, and with production costs of about USD25,000, the potential return on invested money is a high 55%, it says. It currently costs USD1.50 to produce a marijuana cigarette, which sells for USD8.60. "Unless we wish to continue the transfer of these billions from this lucrative endeavour to organized crime, the current policy on prohibition should be changed," it says. "Not only would we deprive some very unsavoury groups of a profound source of easy money, but also resources currently spent on marijuana enforcement would be available for other activities." Two years ago, a Senate report also urged the government to ends its prohibition of the drug and implement a system to regulate its production, distribution and consumption. A federal bill that would have decriminalized marijuana use, but imposed harsher penalties on growers, died with the calling of the election.
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