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Coffeeshops in the UK: Fiction or future? Figures!

Nol van Schaik

nol van schaik talks cannabis

Wednesday 19 Nov 2014

The economic impact of selling cannabis commercially in the UK.

The UK and Spain are the two European countries battling for second place in the cannabis consumption ranking, the number 1 being the Czech Republic.
Cannabis consumption in the UK is twice as high as in the Netherlands, where cannabis is freely available from coffeeshops, for people of 18 years and up.

That would mean, if all the cannabis in the UK was to be sold through legal outlets, like the Dutch coffeeshops, the country would make billions, create employment and save loads of money on policing and prosecuting the plant and its affecionados.
I know how popular coffeeshops or cannabis cafes could be in the UK, I was Colin Davies' partner in opening the first ever coffeeshop in the UK, the Dutch Experience in Stockport, Manchester.



The place was always loaded, and sales had to be restricted to two grams of cannabis per head, so we would not run out of supply within an hour. I can not imagine how high the sales could have been if we had been able to have a regular supply, like Dutch coffeeshops, but it could have been tremendous!

The UK government is among the most conservative countries in the EU when it comes to cannabis policy, deaf, blind, but not silent, spouting anti-cannabis propaganda, to cover up their complete lack of knowledge about the topic. The tough approach does not work, nor will it ever work, and it costs heaps of money, and many people end up in prison for trying to supply a growing demand for cannabis.

Let the figures speak.

In the Netherlands, the annual turnover in cannabis is €2.000.000.000, – , 20 % of that amount goes to the State Tax Collector, €400.000.000,- per year!
Today, the Netherlands only has 608 registered coffeeshops left, but that does not affect the sales, the coffeeshops left just get busier, and higher sales, as others are being closed.
This means a Dutch coffeeshop contributes €657.000,- in taxes per year, on average!

Haarlem, the City that allows me to sell cannabis, is the model for Dutch coffeeshop policy in the Netherlands since 1996, being the first municipality to come with a rulebook for the local coffeeshops, in consult with the entrepreneurs. The maximum number of coffeeshops was set on 1 per 10.000 inhabitants, Haarlem has 155.000 citizens, so they allow 16 coffeeshops to operate, the businesses can be sold to new owners, together with the Tolerance Permit.
Together, the 16 coffeeshops sell 3000+ kilos of cannabis per year, which seems to be enough for all coffeeshops, they are united in a local union, Team Haarlem Coffeeshop entrepreneurs (THC), they cooperate closely together to get their cannabis supplies regulated, in consult with the local authorities.

The UK has 63 million inhabitants.

Going from the Dutch model, 1 cannabis outlet per 10.000 citizens would mean the UK could have 6300 small, thriving businesses, Cannabis Cafe's. (cannabis cafe seems to be the most used expression in the UK for a possible cannabis outlet.)
On average, a Dutch coffeeshop employs 10 people to run their business, and some part timers for joints production, etc.

This means by allowing a regulated cannabis industry to take over from the present market, the drugs underworld, 63.000 people could be employed in just the cannabis cafe's.
Each cannabis cafe would need around 5 experienced cannabis growers to keep them stocked with first grade cannabis, creating jobs for another 31.500 people. Other small businesses would be set up to supply the cannabis cafe's with the paraphernalia needed to pack, store and consume cannabis.
By allowing the cannabis cafe's to produce enough cannabis to produce hash as well, their would be no criminal influence in the supply chain. The sales of foreign cannabis products should be prohibited, this would also decrease and eventually stop the 'flight of capital' , meaning millions of GBP no longer going abroad for imported cannabis.

The demand is there, regulate it!

Imagine, 6300 cannabis cafe all contribute €657.000,- or, GBP 525,035.95 to the State's Treasure, every year, that would add up to GBP 3.307.500.000,- !

The UK's annual turnover, in cannabis, would amount a whooping GBP 16.375.500.000,-
(Note: these figures could be significantly higher, cannabis consumption in the UK is much higher in percentages, and the UK consumer tends to use more cannabis than the Dutch.)

These figures should make the UK government think, and then act accordingly, because this money is already being turned over, every year, but instead of raking in the Taxes involved, they throw away money searching for 'cannabis factories' and people selling cannabis.

The demand is huge, the market is there, but the UK misses out on roughly 100.000 jobs and GBP 3.307.500.000,- in taxes!

Leaving this market to the criminals is actually criminal in itself, get wise, legalize!

A ready made concept and the Judicial guidelines to get started with an experiment with cannabis-production, -supply and -sales has been created by Cannabis Agency.

http://www.cannabistext.org/index.php/cannabis-agency.html

http://www.cannabistext.org/index.php/international-legal-aspects.html

(Note: The figures on the average tax payment per coffeeshop have changed, due to the decrease in coffeeshop numbers, the sales have not decreased. The average in the concept is lower, the number of coffeeshops (was) higher.)

Our organization is ready to advice and assist the UK government in making the change towards a new approach, in order to get to a responsible cannabis policy.

Nol van Schaik
Vice-President Cannabis Agency.

Author: The Dutch Experience.

http://nolvanschaik.blogspot.com.es/2014/11/coffeeshops-in-uk-fiction-or-future.html

 

 

 

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