The hemp industry is set to experience a significant shift as the government introduces sweeping changes to its regulations. The Ministry of Regulation's decision to loosen rules has sparked excitement among hemp growers and industry professionals alike.
The current licensing system, which David Seymour, the Regulation Minister, describes as 'heavy-handed and outdated', will be replaced with a more flexible approach. One of the key changes is the removal of the requirement for industrial hemp growers to obtain a license if their plants contain less than 1% THC (tetrahydrocannabinol).
However, Seymour emphasizes the importance of transparency and accountability. Growers will still need to notify the police and the Ministry for Primary Industries (MPI) before planting, ensuring that they are aware of the distinction between industrial hemp and illegal cannabis. This step is crucial to prevent accidental enforcement and to combat illicit cannabis activities.
The new regulations will also allow hemp biomass, including flowers and leaves, to be supplied to licensed medicinal cannabis producers under strict conditions. This expansion of hemp's applications is expected to boost the industry's growth and innovation.
The changes outlined by Seymour include:
- Industrial hemp will no longer require a license for growth or handling.
- A clear THC threshold of less than 1% will differentiate hemp from high-THC cannabis.
- Hemp biomass, including flowers and leaves, can be supplied to licensed medicinal cannabis producers under strict conditions.
- Growers must notify the police and MPI before planting to avoid accidental enforcement and assist in controlling illicit cannabis activities.
- Hemp use remains restricted to fibre, seed, and oil, with additional permissions for medicinal cannabis supply.
- Existing food safety and medicinal cannabis requirements will continue to apply.
Seymour's announcement highlights the industry's long-standing struggle with outdated regulations. He states, 'The industry has been treated like a criminal for too long. The changes will reduce costs, provide certainty, and stimulate innovation.'
The benefits of these changes are projected to be substantial, with an estimated $7.5 million in savings over 10 years and approximately $41 million over 20 years. Seymour believes that the Regulatory Standards Act is essential to achieving these improvements, as it would have prevented the implementation of 'crazy regulations' that were 'in place to mitigate low risks'.
In summary, the new regulations will simplify the hemp industry's compliance process, encourage innovation, and potentially attract more investors. The Ministry of Health will be responsible for drafting the new regulatory settings, marking a significant step forward for the hemp industry in New Zealand.
