LCV calls on Allan government to regulate cannabis and reap the profits: Prohibition has failed

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16 July, 2025
FOR IMMEDIATE RELEASE

Legalise Cannabis Victoria applauds a new report from the respected research body, the Penington Institute, advocating the legal and regulated sale of cannabis, thereby directing $5 billion away from organised crime

LCV MP David Ettershank said criminalising cannabis had not stopped people consuming the plant – more than 40 per cent of Australians have tried it. 

“The Australian Capital Territory removed penalties for the possession of cannabis plants in 2020, meaning our Canberra leaders do not face prosecution for consuming, but it’s another story for the rest of us,” he said. 

Mr Ettershank said the release today of the Pennington Cannabis Control Plan was a valuable contribution to the community debate and adds to the indisputable evidence that cannabis laws must be reformed. 

“The plan recommends regulated products sold only in licensed outlets, no online sales, no advertising, zero access for children, certification and testing for all products. These are all commonsense measures,” he said. 

“In the short term, Legalise Cannabis Victoria is calling on the Victorian Government to decriminalise personal use and possession of a modest amount of cannabis as soon as possible, similar to 2020 ACT legislation, which has seen no adverse outcomes – no increase in admissions to emergency departments or road accidents. 

“The only outcome in the ACT is that cannabis arrest numbers have plummeted by more than 90%, and people are not being needlessly dragged before the courts. This has freed up the time of police and magistrates to focus on real crime, such as assaults, domestic violence and theft. 

“Last week, research commissioned by Penington Institute revealed a regulated adult-use cannabis market would generate nearly $2 billion in new government revenue through cannabis-specific fees and increased revenue from payroll tax. 

“That is money for community health, schools and infrastructure. The unregulated cannabis market in Australia is valued at $5 billion. Where does that money go? To organised crime – that means cannabis sales are financing violence, bribery and other forms of corruption. 

“It is filthy money dripping into our economy, but by regulating cannabis, we cut the supply of this dosh to crime.  

The 2021 Inquiry into the use of Cannabis in Victoria Report; the 2024 Victorian Inquiry into the Regulation of Personal Adult Use of Cannabis; and the 2025 Impact of the Regulatory Framework for Cannabis in New South Wales all found that prohibition failed and it’s time for regulation and a health-centred approach. 

“We implore the Allan government and all MPs to read these reports and abandon outdated attitudes to cannabis. The Pennington report’s regulated market approach is consistent with the ALP’s 2024 state conference policy decision – delegates unanimously voted for legalising and regulating cannabis. 

“It is time we joined forward-thinking jurisdictions like Canada, Germany and Malta, which have abandoned prohibition.” 

[ENDS]

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