Pubdate: Sun, 15 Sep 2013
Source: Observer, The (UK)
Copyright: 2013 Guardian News and Media Limited
Contact:  http://www.observer.co.uk/
Details: http://www.mapinc.org/media/315
Author: Jamie Doward

LEGAL CANNABIS 'WOULD SAVE UKP1.25BN A YEAR'

Legalising and taxing cannabis could be worth as much as UKP1.25bn a 
year to the government, a study suggests.

The report, by the Institute for Social and Economic Research, 
quantifies for the first time the potential revenues to be gained 
from the legal regulation and taxation of the cannabis market in 
England and Wales.

It estimates that reduced enforcement costs, including police, court 
and prison time and community sentences, could result in a net 
external benefit of at least UKP300m. The paper, co-authored by 
Stephen Pudney, professor of economics at the University of Essex, 
balances revenues against potential costs, including regulatory costs 
and increased health promotion initiatives.

Pudney said the report was not a definitive attempt to put a price on 
the cannabis market, but was instead an attempt to set out what 
factors needed to be considered if such a policy were to be introduced.

It estimates that roughly three-quarters of the net benefit to the 
government would come from tax revenues.

"In these times of economic crisis, it is essential to examine the 
possibilities of more cost-effective drug policy," said Amanda 
Feilding, director of the Beckley Foundation, which campaigns for 
scientifically based reform of drugs policy and commissioned the 
report. "Our present policies based on prohibition, have proved to be 
a failure at every level."
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MAP posted-by: Jay Bergstrom