Pubdate: Thu, 08 May 2014
Source: Nelson Mail, The (New Zealand)
Copyright: 2014 Fairfax New Zealand Limited
Contact:  http://www.nelsonmail.co.nz/
Details: http://www.mapinc.org/media/1069
Page: 2

BIG MONEY IN LEGAL HIGHS SALES

The legal-high industry made massive multimillion-dollar profits
during the Government's brief fling with regulation.

In a rare insight into the legal-high industry, the Ministry of Health
estimates the industry was making a 1000 per cent profit on every
packet of synthetic cannabis sold.

Chemicals were imported in bulk from China, processed into synthetic
cannabis for about $2 a packet and sold for $20.

Since the Government set up the regulated market in July last year, it
is estimated that 3.5 million packets of synthetic cannabis were sold
in New Zealand.

Ministry officials have said the sheer scale of the industry caught
them by surprise. With estimated sales of about $140 million a year,
it dwarfed the BZP party pill craze at its height a decade ago.

As of a minute past midnight this morning, interim licences for all
legal highs were revoked, making it illegal to possess, supply or
manufacture the drugs.

The amendment passed on Tuesday night marks a U-turn for Parliament,
which voted only last year to set up a regulated market for the drugs,
licensing the industry and giving health authorities the power to pull
unsafe products.

The U-turn was praised in many communities affected by synthetic
cannabis, but others have condemned it as a kneejerk political
reaction in an election year.

Even the Ministry of Health has warned that banning legal highs
outright will push the products underground into the unregulated black
market. It has estimated between 150 and 200 people are now so
addicted to synthetic cannabis that they would need medical help to
withdraw. "People who use these products are expected to stockpile
them for their own personal use and the black market is assumed to
stockpile to supply future demand," ministry officials said.

"Because these mechanisms will provide for the continued supply of
these products, irrespective of legal status, use and associated harms
amongst dedicated users is expected to continue."

Kai Guo, who owns the Naenae T in Lower Hutt, said yesterday he had
been selling about three times as much synthetic cannabis as usual,
with some customers bulk-buying up to $100 worth at a time.

He feared the ban would create a "tinnie house boom" as users embraced
the traditional black market for marijuana to get their fix.

Legal-high pioneer and manufacturer Matt Bowden will have to recall
and destroy thousands of packets of synthetic cannabis during the next
few weeks, all of which he claims are safe. He said he had already
heard reports of criminals setting up low-grade "garage labs" for
synthetic cannabis.

"It's a bit of a kick in the guts to see the market handed to
criminals with no code of practice or hygiene standards at all. It
will be like buying from a meth lab instead of a pharmacy."

Bowden said selling legal highs was not as profitable as it looked,
with retailers, research and development, and safety testing taking a
big chunk.

"Maybe if you are buying from overseas and not doing any safety
testing, it is [highly profitable]."
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MAP posted-by: Matt