Medicinal cannabis trial gets green light on Norfolk Island: Tasman Health Cannabinoids gets production licence

Updated

The Tasmanian company that applied to trial medicinal cannabis in the state has been given the go-ahead elsewhere.

Like Tasmania, Norfolk Island has an historic past that struggles financially and depends on assistance from the Commonwealth.

But as the island's Health Minister Robin Adams explained, it was keen to pull itself out of that mire.

"We are open for investment, we are open for business on Norfolk Island," she said.

We are open for investment we are open for business on Norfolk Island Robin Adams

Norfold Island Health Minister

Norfolk Island is an external territory of Australia - it is not part of Australia's taxation or welfare system.

Dependent on tourism, it was hit hard by the global financial crisis.

Ms Adams said the island saw visitor numbers halve from around 40,000 a year to 20,000.

"We see this as a great opportunity both for the economy of Norfolk Island whilst providing a much needed medical product for export," she said.

The island's government has given Tasman Health Cannabinoids (THC) approval to grow medical cannabis.

THC had wanted to conduct its trial in Tasmania, with the view to it becoming a multi-billion-dollar export industry.

"The Health Minister on Norfolk Island Robin Adams has now given us a production licence to go ahead and progress to grow on Norfolk medical cannabinoids," said the chairman of THC, Dr Mal Washer.

Company 'forced' to look outside of Tasmania

THC had been lobbying the Tasmanian Government to grow the product in the state in a trial with the University of Tasmania. The Tasmanian Government knocked them back.

Ms Adams said Norfolk Island leapt at the chance.

"We have our own dangerous drugs legislation and that legislation was amended with the consent of the Commonwealth of Australia back in 1997," she said.

"As a result of that legislative change I may grant a licence to import cannabis into Norfolk Island, export from Norfolk Island, plant, cultivate tend or harvest cannabis and sell cannabis," she said.

Dr Washer said the company would press on with the trial on Norfolk Island rather than THC's home state of Tasmania for two reasons.

"One, obviously shareholders want a profit from this," he said.

"I personally, and a lot of shareholders feel the same as me, the main reason ...is to really try and get the best quality product we can, [a] medical cannabinboid product for export to the country where it's legal."

Medical cannabis is legal in a number of European countries, Canada and more than 20 states in the United States.

The drug is sold by weight. In a recent article in the Wall Street Journal it was estimated the drug costs about $US1,000 to produce a pound (about 450g), the same weight sells for $US7,500.

THC's chief executive Troy Langman said it would be a profitable industry once it was established.

"In November we're hoping to kick things off and three to four months later we should have our first harvest, and indoors we're looking at around three harvests per year," he said.

Mr Langman has been on Norfolk Island this week working on the licensing arrangements and regulatory regime.

"We're still hoping to fulfil our initial order that we were lucky to obtain from Canada, that was 1,000kg," he said.

Dr Washer said there would be strict growing and security requirements.

"I guess we'd be looking at a 10-acre site and a glasshouse would cover the bulk of that," he said.

THC in the market for cannabis seeds

Mr Langman said he was now in the process of obtaining enough cannabis seeds to get the project started.

"We'll be obtaining our strains through legal channels from both universities in Australia where there's seed banks and also of course the option to obtain seeds from places like Canada and also from Europe," he said.

But Mr Langman said THC was not giving up on Tasmania.

"We'll continue to push ahead, there's different strains that we want to grow in Tassie's climate we feel really committed to Tassie," he said.

Dr Washer believed there was growing momentum for change in Australia.

"There's five jurisdictions currently looking at this," he said

"Federally of course too, my good friend Warren Entsch, when I spoke to him only a couple of weeks ago intends to introduce a bill into the Federal Parliament to legalise medical cannabinoids."

As well as employment there is likely to be hefty returns to Norfolk Island coffers.

Ms Adams said exactly how much was still being decided, with taxes under discussion.

"I'm of the view that this new industry will align perfectly with the vision that I share with many in this community, that Norfolk Island has the potential to be a centre for health and wellbeing in the Pacific," she said.

Tasmania's shadow attorney-general, Lara Giddings, said Tasmania has missed a big opportunity, losing potential investment and jobs.

"This medicinal cannabis industry could provide that while also providing medical and pain relief for those who need it," she said.

The company hopes to start planting on Norfolk Island in November.

Topics: health, cannabis, medical-ethics, norfolk-island-2899, nsw, australia, tas

First posted