Hemp industry laws are set to be loosened as Regulation Minister David Seymour announces sweeping changes.
Seymour says the current licensing rules are heavy-handed and outdated, and will be replaced with new rules.
Industrial hemp growers will no longer require a licence if the plants contain less than one-percent THC.
But Seymour says growers will need to notify police and the Ministry for Primary Industries before planting, so they're aware it's not illegal cannabis.
David Seymour visiting the Hemp NZ Food Factory in Ashburton today. Photo: RNZ / Nate McKinnon
He says industrial hemp has very low levels of THC and doesn't need to be heavily regulated like cannabis.
Under the new settings:
- Industrial hemp will no longer require a licence to grow or handle.
- A clear THC threshold of less than 1% will distinguish hemp from high-THC cannabis.
- Hemp biomass, including flowers and leaves, may be supplied to licensed medicinal cannabis producers under strict conditions.
- Growers must notify Police before planting to avoid accidental enforcement and assist in controlling illicit cannabis activities.
- Growers must also notify MPI at the same time as Police.
- Hemp use remains restricted to fibre, seed, and oil, with additional permissions for medicinal cannabis supply as noted above.
- Existing food safety and medicinal cannabis requirements will continue to apply
David Seymour speaks to media during his visit. Photo: RNZ / Nate McKinnon
Speaking to media at the Hemp NZ Food Factory in Ashburton following the announcement on Thursday morning, Seymour said the industry had been treated like a criminal for too long.
"The industry has been held back by outdated, heavy-handed rules that treat growing low-risk crops like high-risk drugs. That ends now."
Cabinet agreed to a package of changes to scrap the current licensing regime for industrial hemp and replace it with a more practical, proportionate regulatory approach.
Seymour said red tape for the sake of it had cost growers money and limited innovation.
Photo: RNZ / Nate McKinnon
He said the changes were expected to generate a benefit of $7.5m over 10 years, and about $41m in over 20.
"The changes will reduce costs and give certainty to growers and investors."
Industrial hemp contained low levels of THC and was grown for food, oil, fibre and health products, Seymour said, and despite its low risk had been heavily regulated.
He said it was another example of why New Zealand needed the Regulatory Standards Act.
"If the Act was in place at the time these regulations were made, you would be able to see the low risks the crazy regulations were in place to 'mitigate'.
Photo: RNZ / Nate McKinnon
"So far though, the disproportionately high costs of regulating the use and exchange of industrial hemp have been hidden."
Under the new settings industrial hemp would no longer need a licence to grow or handle, a THC threshold of less than 1 percent would distinguish it from high-THC cannabis and hemp biomass including leaves and flowers could be supplied to licensed medicinal cannabis producers.
Growers would need to notify police and MPI before planting to avoid accidental enforcement and hemp use remained restricted to fibre, seed and oil.
The Ministry of Health would draft new regulatory settings.
Photo: RNZ / Nate McKinnon
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