Motions

Industrial Hemp

Debate resumed.

Mr HUGHES (Giles) (12:10): I rise today to express our wholehearted support for the motion. I would like to acknowledge the work that was done in the upper house by the Hon. Kyam Maher and the Hon. Tammy Franks in providing a bit of impetus to get this industry going. I am aware that there are two trial sites: one in the South-East and one in the Riverland. Because of the regulations governing the industry at the moment, we are understandably not able to identify in detail where those particular sites are.

It is always very worthwhile to promote diversification, whether it is in the agrarian sector or in the industrial sector. The development of industrial hemp will assist in diversifying our agricultural base here in South Australia—and a very fine agricultural base it is as well. The work that has been done to date will hopefully see the development of a decent-sized industry and it might well be that we have underestimated the potential impacts of this industry, given the number of cultivars that are available—so there should be some flexibility there—and given the range of products that can arise as a result of the growing of industrial hemp.

I recall Grand Designs, a program that usually features houses that are way over the top. On one occasion, Kevin McCloud, the architect and presenter of that television series, put his own money on the line and got involved in developing a relatively low-cost housing project. There were multiple houses, and one of his choices of building material was hempcrete.

He chose to use hempcrete for a range of environmental reasons. One reason was that it was a store for carbon, but it had some practical benefits in that it was a good insulator, it was fire resistant and it was very easy to use. It could be used in panels. It could be used in a brick form. As you followed that housing project through to fruition, they ended up with a good result with that particular hempcrete.

Of course, there are a whole range of other applications for industrial hemp. Indeed, someone in my electorate approached me the other day interested in growing hemp to the north of Cowell. I am not sure whether conditions in that particular area would suit, given the rainfall and the soil types, but I did indicate to him to go and have a chat to PIRSA and the local economic development board. I imparted what knowledge I had, but there are clearly a lot of people around with far more knowledge. It was interesting to see that people were taking an interest.

I had a full speech prepared, but the member for Hammond gave a very comprehensive description of what is proposed, what is happening and what potentially might happen in the future, so I am not going to repeat any of that. I think one of the things about this house is that many words are spoken and a lot of it is incredibly repetitive. I suggest that if the productivity commission gets up and running, one of the first things to look at is parliamentary processes and how we could become more efficient in this place so that those of us who are country members can be out there in our electorate where the real work gets done. That is just a suggestion, without reflecting negatively on the great work of this house.

The motion mentions SARDI, and I want to add my bit and bestow accolades upon SARDI. It is a fantastic organisation that has done great work over the years. I hope that the current government will have a greater focus not just in relation to SARDI but to the broader field of research and development—in agriculture and horticulture—with more resources provided to assist in applied science and some of the purer aspects of that; but this is largely related to applied science.

I was quite a proud owner of a hemp shirt at one time. I am not noted for my sartorial elegance, and I would have to say that the shirt itself was not particularly elegant, but it was a great shirt. It was very comfortable, and it lasted a long time. I had that shirt many years ago. I bought it in Newcastle in an upmarket little boutique that somehow I ended up in courtesy of my daughter. I ended up getting that hemp shirt, and it was a good quality product.

When you look back in time at the range of hemp products being produced, it is actually quite amazing: body parts for cars, and of course the shipping industry used to be, once upon a time, heavily dependent upon hemp. There were hemp ropes. It was a widely used product, and it was the introduction of petrochemicals that largely saw a lot of those uses for hemp hit the wall. But I can see a resurgence coming because the plant has a lot of worthwhile attributes.

At the end of the day, it will come down to the entrepreneurial flair of our farming sector—and also the manufacturing sector and the other people who have the capacity to value add—and they will look at what is going to make economic sense, which cultivars to propagate and where to propagate. Two trials is probably not enough, and there is going to be a lot of trial and error initially. Of course, we can build upon what other countries that have relatively mature industrial hemp sectors have done.

I commend the member for bringing this motion to the house. It is a motion that deserves our support. It is always good to see at times tripartisan support for the development of new industries in South Australia.

The Hon. T.J. WHETSTONE (Chaffey—Minister for Primary Industries and Regional Development) (12:18): I have great pleasure in getting up and making a contribution to the member for Hammond's motion today. I can speak quite fondly of what has been achieved and what has been introduced into South Australia as another primary industry. It is a diverse crop, and it gives mostly primary producers, in essence, the opportunity to diversify their businesses.

We have seen two trial sites: one in the South-East and one in the Riverland, and those trial sites are an indication that the crop can be grown here in South Australia. Those trial sites were undertaken by the great, dedicated SARDI officials. I recently travelled to the South-East to look at the trial site down there. I noticed that they had different planting times and different strains of the plant, and it was interesting to see the diverse results. What I would say is that I have been given results for both the fibre and value-added products of hemp from the South-East and from the Riverland.

It is a very diverse plant. Not only do we look at producing building products and fibre to make clothing and other twine products but it also has the diversity to make pharmaceutical products, cosmetics, and the list goes on. It is a crop that can be grown in diverse situations. I noted contributions from the members for Hammond and Giles questioning whether the crop can be grown in different areas for different circumstances—yes, it can.

It is a hardy plant that is highly fibrous, so it can be grown at different times of the year and under different weather conditions, but of course it would be more successful under irrigation, given the type of plant it is and the root system it has. It is predominantly a surface root plant, but I am sure we will get different results with different planting techniques and inputs. This is an opportunity for South Australia to get on board and potentially use this plant diversely. Again, in April, as the Minister for Primary Industries and Regional Development, I issued the first cultivation licences for industrial hemp in South Australia.

The details around licences are protected under the act, so we cannot reveal where the trials are based or where the licences are going to be issued. This is all for good reason: those who are uneducated, thinking that they have stumbled across a perceived drug crop, have their facts and figures wrong. It has a very low THC content of 0.5 per cent, as I understand, and that is there specifically so that it is not an incentive for people to utilise industrial hemp for all the wrong reasons.

I can say that my department has had plenty of interest and inquiries into how people can participate and be a part of the industrial hemp industry. I must point out that of the two trial sites, the one in the South-East was in clay, which is quite heavy ground, and the water they used was quite saline. The trial site in the Riverland used free-draining sandy loam and the great water from the River Murray.

What the trial sites were able to prove is that hemp can grow in quite diverse situations, climate types, soil types, water types and inputs. Just like any form of agriculture or horticulture, it will be finely tuned as time goes on. If we look at any primary production crop, what we see is that different growing techniques and different input styles always achieve different results. I say to those considering expanding their horizons into industrial hemp, please contact the PIRSA office and they will give you the necessary details.

For the harvest that has concluded, SARDI is in the process of cleaning the grain for final weighing and subsampling. The grain quality will then be assessed by the University of Adelaide and the stem quality assessed by the CSIRO. These are just the qualities of the different strains of the plants to determine what they can best be used for. If we are going to grow high-fibrous type plants, they will potentially have a much bigger benefit within the building industries and produce better clothing quality. If we look at the oil content, then cosmetics, pharmaceuticals and other related products will also complement the oil content.

I expect that we will know the results of those trials in August, which will give a clear understanding of the strain types, how they will grow and the types of products the primary producer is looking to cultivate. Through PIRSA and SARDI, the government will continue to work very hard to realise the opportunities for industrial hemp as a diverse option for our agricultural industry in this state. I am very proud that I have been able to see the trials and undertake a lot of consultation with the trial sites to make sure that the growers and the potential entrants into the industry get good advice and good direction.

We take for granted that it may have taken decades to develop the strain of a wheat in a paddock. With horticultural groves, the citrus industry, almonds and grapes, it may have taken a century to get the right varieties in the right areas, to get the right growing techniques and the right outcome. It is an exciting time. These are early days, but it is an opportunity. I commend this motion to the house.

Ms BETTISON (Ramsay) (12:26): I rise to support the motion and to thank the member for Hammond for bringing it to the house. While today we are noting that the first cultivation licences have been approved, it was Labor that backed the Greens' plan to legalise hemp cultivation for industrial use. We backed the legislation with amendments limiting the level of THC and subjected growers to testing and regulatory checks to ensure they were fit and proper persons.

The move to legalise hemp cultivation for industrial use aligned South Australia with other states. The Northern Territory is now the only other jurisdiction where cultivation has not been legalised, but I understand that crop trials are underway. Historically, when we look back on this industry, Victoria was the first state to legalise it in 1998, followed by the other states. When we think about hemp, many people think about marijuana, which of course is not what this is. This hemp is a cannabis type with very low levels of the chemical THC. It can be used to produce clothing, food, paper, textiles, plastics, insulation and biofuel.

Let's remind ourselves of the steps taken here. Labor was at the forefront of this new emerging industry in South Australia. To promote that, we held a round table with people interested in the economic opportunities. We needed people to come together to understand holistically the opportunities going forward.

Labor continues to back any industry offering an economic benefit to the state. It is an opportunity to build on what is still the most significant part of our economy: primary production. I look across the house and note that many people have family histories and continue to be involved in our farming communities. We know that South Australia's climate is well suited not just to general primary production—wheats, oats and barley—but also to industrial hemp.

One of the key things about bringing this forward was to understand how the licences are approved. PIRSA (Primary Industries and Regions SA) is responsible for issuing licences to authorise the possession, cultivation, processing and supply of industrial hemp in South Australia. Of course, you can only sell the industrial hemp you grow to someone who holds an industrial hemp licence, which allows a licence holder to grow or use industrial hemp in a manufacturing process, food products—when authorised—or for research purposes.

When I looked into the background of this, the question that came to me was: where to from here? How do we build this industry? I understand that in November last year there was a significant coming together of representation from farmers, building and construction, clothing manufacturers, and the Office of Industrial Hemp and Medicinal Cannabis. They wanted to discuss how best the industry could be organised to take advantage of the new opportunities in South Australia. At that point the group heard that there were industrial hemp-growing trials being conducted in the Riverland and the South-East.

From that opportunity, there was general agreement about the next steps forward: a five to 10-year strategic plan would be developed; agronomy is critical to success; seed would be the initial target crop; it was important for us to quantify the cost and return for crops; markets would dictate the growth of the industry; and South Australia is likely to have a competitive advantage in food products. There was also the opportunity for a collaborative cluster development, looking at that as a potential industry model.

Some of the things people often say to us are, 'Where do we get help? How do we find how we can develop our business, our industry?' That is why we established the Office of Industrial Hemp and Medicinal Cannabis. They are two separate issues, but we made sure that we had a one-stop shop people could approach.

When looking into this motion, it was very interesting to note from the market insights that 30 nations grow industrial hemp and that the largest hemp seed-producing nations are France and China, while China and South Korea are the largest fibre producers. There are also substantial hemp industries in Canada and Europe. While we know that for more than 20 years it has been grown interstate, South Australia has approval for the first cultivation licence, and this is just the start of this industry developing here.

As shadow minister for trade, I am always interested to know about opportunities to develop our economy. While we might be using the product within Australia and exporting to the Eastern States, there might be an opportunity for us to gain a foothold in the international market. I thank the member for Hammond for bringing this motion, but once again I highlight that it was the Labor government that set this in motion.

Mr CREGAN (Kavel) (12:32): I rise to support the motion. As members know, industrial hemp is cultivated for seed and fibre production, and its cultivation offers a new and versatile crop for mixed cropping farmers in South Australia. Hemp fibre and pulp can be used in industrial and consumer settings, including in the production of paper, building materials, textiles and, of course, hemp seed oil, which is prized for cosmetics, high-protein food production and for use in other manufacturing processes.

The low concentration of THC in industrial hemp crop plants means they cannot usefully be used to produce psychoactive effects in the same way for which illicit cannabis varieties can be cultivated and ultimately illegally produced and harvested. Industrial hemp production is regulated in South Australia under the Industrial Hemp Act and the Industrial Hemp Regulations, and I am pleased and proud that one of the first licences for cultivation of industrial hemp was granted for cropping on a 69-hectare property in the Adelaide Hills.

As well, I inform the house that a successful cosmetics business that uses industrial hemp products trades on Gawler Street in Mount Barker within my electorate. Hemp Hemp Hooray has established itself as a leading boutique cosmetics brand in the Hills, and I extend my congratulations to Teresa and Simon McDowell, who have built a successful small business in my community and who have demonstrated the many valuable uses of industrial hemp. They have experienced growth in sales of about 56 per cent in the last 12 months and a corresponding increase in the production of the cosmetics products they retail has been necessary. Teresa and Simon are considering employing further staff, including trainees.

I mention these matters in the house to further illustrate the value of their business to my community and the value of their business model to our state. I thank the member for Hammond for bringing forward this motion.

Ms LUETHEN (King) (12:34): I rise to support the motion:

That this house—

(a) notes the state government approved the first cultivation licences for industrial hemp in April 2018;

(b) acknowledges that it is anticipated that within five years an expanding industrial hemp industry in South Australia could have a farmgate value of $3 million per year; and

(c) highlights the excellent work undertaken by SARDI, particularly through industrial hemp trial crops in the Riverland and South-East.

In 2011, I was a finalist in the Telstra Business Women's Awards and was very fortunate at this time to meet another finalist, who is an outstanding, innovative and passionate businesswoman; her name is Teresa McDowell, as just mentioned by the member for Kavel. Teresa was on a mission to empower people to harness the hemp life and engage in healthy living. Teresa is the founder of Hemp Hemp Hooray and is a hemp living advocate. Since making her first and most popular hemp product, Skin Soothe, in Mount Barker, South Australia, Teresa has transformed her hemp skincare range into a brand with passion and purpose.

Teresa's story began 10 years ago when her passion for aromatherapy and her vision for industrial hemp collided. These two powerful forces resulted in the creation of a natural skin and body care range, using Australian grown hemp seed oil as the base for all her products. Frustrated by artificial and chemical-based skincare brands available to consumers, she took matters into her own hands and started making her own natural products, while raising three children, in South Australia. Her range quickly grew and gained a loyal following, with customers placing orders across Australia and overseas.

Teresa and I continue to cross paths with a group of impressive women in leadership who form the Telstra Business Women's Alumni. This provides me the opportunity to hear stories from across South Australia of smart women working hard and being innovative to make a difference in business and in our community. I have watched with great interest Teresa's advocacy for the industrial hemp industry and therefore would like to take the opportunity to share a statement from Teresa supporting the motion today:

As a long-time advocate for Industrial Hemp, Founder of IHASA (Industrial Hemp Association of South Australia) and business owner in this emerging industry I would like to highlight the incredible work of the Association and its dedicated committee.

IHASA along with regional advocates played a pivotal role in lobbying for the Industrial Hemp Bill SA, 2017.

After 14 years building Hemp Hemp Hooray natural body care, educating consumers and the public on the many and varied benefits of industrial hemp, it is wonderful to finally see the groundswell of support and awareness for all things hemp.

As SARDI continue to progress with crop trials and the first licenses are now being granted, it is my hope that government can further support farmers, producers, manufacturers and innovators to get on with the business of hemp—tapping into its local and global markets.

Thank you, Teresa, for your commitment to your passions and this industry. Thank you to the member for Kavel for also recognising this wonderful businesswoman. I look forward to this government continuing to support this new industry, particularly for new ventures in the cultivation and processing of industrial hemp. This government is certainly focused on improving economic and productivity growth in South Australia in order to achieve higher standards of living for all South Australians and more jobs for South Australians. I thank the member for Hammond and commend this motion to members.

Mr PEDERICK (Hammond) (12:38): I thank members in this house for the unanimous approval of this new, exciting industry coming into South Australia, which will be a boon for not just agriculture but the whole state. I commend the motion.

Motion carried.