NZ Cannabis Debate: Economists Say It Should Be Legalised

The New Zealand Institute of Economic Research - a group better known for its views on inflation targeting and GDP growth - says New Zealand should move "sooner rather than later" to legalise marijuana which would generate a net gain of $300 million to the government accounts.

Drawing on Treasury research which found that legalising could reap $150 million in new government revenue and reduce spending on drug enforcement by around $180 million, NZIER Principal Economist Peter Wilson concludes that legalisation, combined with heavy taxation, regulation and education would be a better way of reducing social harm from the drug.

"The result should be less use, considerable fiscal savings to the government and the removal of a valuable source of revenue for criminals," he writes. "Prohibition of marijuana, just like prohibition of alcohol before it, has been a costly failure."

Wilson argues that legalisation and taxation of the sale - as opposed to decriminalisation - would have the advantage of allowing to regulators to push the price higher than that at which it is currently available legally.

Last week a Drug Foundation poll found that the majority of New Zealander's support some sort of reform to marijuana laws.

Read the full story at nzherald.co.nz