Industrial Hemp

The Hon. J.M. GAZZOLA (15:11): My question is to the Minister for Manufacturing and Innovation. Can the minister update the chamber on the recent round table held to discuss the industrial hemp and medicinal cannabis industry in South Australia?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (15:12): I thank the honourable member for his question. It is a very good question and I thank him for his interest in manufacturing in South Australia. It follows a different part of the question that the Hon. Tammy Franks asked previously.

An honourable member interjecting:

The Hon. K.J. MAHER: A different part of the question but they were both good questions. On 30 January this year, the state government hosted a roundtable discussion with key industry participants to look at potential opportunities for the economic development of an industrial hemp industry and a medical cannabis industry in South Australia. The round table was a constructive discussion designed to identify opportunities for and barriers to the respective industries' development in this state.

The discussion was attended by representatives from industry, industry associations, researchers, lobby groups, state government departments, and I also note the valuable and active participation of the Hon. Tammy Franks, who has had a longstanding interest in this area, and the Hon. David Ridgway, who contacted the government and asked to be present and was an active contributor, and I appreciate his time on that day and his participation in those discussions.

Interest in these industries has developed partly following changes implemented by the commonwealth government. As the Hon. Tammy Franks alluded to earlier, it is part of a framework to provide access to medicinal cannabis in appropriate circumstances for patients in Australia. The South Australian government recognises that there may be economic opportunities to develop both industrial hemp and medical cannabis industries in our state.

The industrial hemp discussion initially focused on opportunities and benefits of developing an industrial hemp industry in South Australia which could include areas such as primary production and also value-adding for things like production of textiles for clothing, building products, and things such as cosmetics. The discussion then went on to look at barriers to realising these opportunities, including licensing regimes, trialling of crops and the importance of developing export market opportunities.

The medical cannabis discussion covered a range of topics, including classification, definition, research, cultivation and the importance of industry development. At the conclusion of the round table I committed to responding to the industrial hemp element of the discussions within 30 days. I can inform the chamber that the government will be supporting the Hon. Tammy Franks' ambition to develop an industrial hemp industry.

With regard to her bill that is currently before the parliament, given that it's before this chamber I won't go into details, but over the next couple of weeks I will be speaking to the different parties in this chamber about amendments to the Hon. Tammy Franks' bill, particularly into the licensing and inspection regimes that will be needed to go along with that.

By removing barriers to the cultivation of industrial hemp, we will give growers and manufacturers the opportunity to explore any possible potential benefit for the industry in South Australia. With the appropriate rules and regulations in place, our primary producers will be able to consider whether they want to become involved in the hemp sector, with the potential to further develop industries through the growth and manufacturing of these products. At that roundtable discussion, I also committed the government to considering how it might support economic development opportunities in medicinal cannabis industries in South Australia.

I can inform the chamber that, following the round table, I have written to the federal Minister for Industry, Innovation and Science, the Hon. Arthur Sinodinos, to clarify a range of matters that were raised by participants at that round table, particularly clarification on the step-by-step process for obtaining cultivation licences, manufacturing licences and also the processes for importation of medical cannabis products into Australia. There has been some movement on this by the federal health minister in the last couple of weeks.

I have also sought clarification on the rationale behind any possibility of change in the current prohibition of export markets for medical cannabis products. Clearly, if a medical cannabis industry has an opportunity to develop in this state, the capacity of export could be an essential criterion for reaching the critical mass required to achieve economies of scale for a profitable industry in this state. I look forward to continuing to inform the chamber about progress in this area, and I look forward, in the coming weeks, to looking at the bill that is currently before parliament, put up by the Hon. Tammy Franks.