Evidence suggests cannabis is a
much safer intoxicant than the only legally available
one, alcohol. In fact we now know that illegal drugs
are safer than legal ones. However the alcohol and
tobacco industry has managed to get competing drug
industries prohibited under international law based
on false concerns about health dangers. Governments
receive huge amounts of tax revenue from the legal
drug industry while viewing illegal drugs as a drain
on their resources. The illegal drug industry is
worth some £200 billion a year but this is left to
organised crime instead of properly regulating the
trade so that tax revenue meets the cost of any harm
caused by the trade.
Government profits from the legal drug
trade:
UK Online, Hot Topic 'Smoking':
"In 2000 the UK government received £9,616
million in revenue from tobacco."
http://www.ukonline.gov.uk/NewsRoom/NRHotTopic/0,1175,117797~801b22~fs~en,00.html
BBC news:
"…the government nets £11.5bn per
annum in tax revenue from alcohol sales."
http://news.bbc.co.uk/1/hi/health/1656142.stm
Alcohol Concern:
1999-2000 Total Government Income from alcohol
= £11½ billion
Numbers of licensed premises in the United Kingdom in
2000: 200,000
Factsheet 11: The licensed trade
Government support of legal
drug trade:
Action on Smoking and Health (ASH):
"The UK Government contributes to a total
Europe-wide subsidy for the tobacco-growing industry,
based mainly in Italy and Greece. Tobacco is the most
heavily subsidised crop per hectare. The European
Union spends almost €1 billion a year
subsidising tobacco farming."
http://www.ash.org.uk/html/factsheets/html/basic03.html
Inland revenue, spring 2002 budget:
"9. Duty on spirits is now 34 per cent
lower in real-terms than it was 20 years ago, and
thanks to the duty freezes in the last 5 Budgets, a
bottle of spirits is now 73 pence less expensive than
it would otherwise have been.
12. In real-terms, the cuts in spirits, beer, wine
and cider duties in the last two Budgets have saved
the nation's drinkers around £200 million, and given
a valuable boost to drinks producers, pubs and other
retailers."
www.inlandrevenue.gov.uk/budget2002/ce1.htm
Government claims to
support free trade:
Government's Strategy Unit document, 'Rights of
Exchange':
Executive Summary, states:
8. "A rules-based international trading system
is important in order to avoid the dangers of
protectionism which may be disguised as raising SHE [Social,
Health & Environmental welfare] standards; there
are 'win-win' policies available which both
liberalise trade and improve SHE outcomes".
22. "Action to influence foreign production
methods, including measures targeted at trade, should
be avoided where the motive is to achieve a
competitive advantage through the protection of
domestic industry. This includes protectionism
disguised as action in pursuit of SHE objectives."
www.cabinet-office.gov.uk/innovation/2000/trade/summary.htm
'Rights of Exchange', Main Points, states:
4. "Where there are disagreements about the
acceptable level of risk from imported products,
especially to consumer health or the environment:
Empirical evidence must be the main test; but the
precautionary principle must have a role where the
evidence is unclear and there is a risk of serious
impacts which may be irreversible. But it should not
be a pretext for disguised protectionism".
www.cabinet-office.gov.uk/innovation/2000/trade/main-points.htm
Competition and Monopolies:
Department of Trade and Industry:
"The Government is committed to modernising and
strengthening the UK's competition laws, ensuring
that effective and dynamic competition is delivered
across the economy, as part of its wider agenda of
promoting competitiveness and growth.
Strong competition provides the best guarantee to
consumers of choice and value. But it also makes for
strong businesses, providing the spur for them to be
dynamic and innovative. It equips them to compete in
the global market.
The Government is determined to make the legislation
and institutions which safeguard competition fully
equipped for the demands of the 21st century".
www.dti.gov.uk/ccp/topics2/ukpolicy.htm
Office of Fair Trading:
"Under the Fair Trading Act, the OFT continues
to look closely at situations where a number of
companies which together constitute a significant
proportion of a market may be so conducting their
affairs as to prevent, restrict or distort
competition. These are known as complex monopolies
and in assessing them the OFT takes account of
matters such as market structure and behaviour, price
levels and how they have moved over time, and profits
and profitability".
www.oft.gov.uk/Business/Monopolies/default.htm
Department of Trade and Industry:
The Competition Act 1998 came into force on the 1
March 2000. It introduces two main prohibitions:
Chapter I: a prohibition of anti-competitive
agreements, based closely on Article 81 of the EC
treaty; and
Chapter II: a
prohibition of abuse of a dominant position in a
market, based closely on Article 82 of the EC Treaty".
"The prohibition approach of Articles 81 and 82
of the EC Treaty is directly effective in Member
States where there is an impact on trade between
Member States. The domestic regime under the Bill is
closely aligned to the EC counterpart".
www.dti.gov.uk/ccp/topics2/competition_act.htm
