volume 11 edition 6
Profits dwarf drug responses
Illicit drug market spending by Australian consumers is an estimated four times higher than the combined public funding in response to the trade, including law enforcement, drug treatment and harm reduction, recently released figures reveal. Australian Bureau of Statistics researchers have estimated that in 2010 Australians spent around $7.1 billion on cannabis, heroin, cocaine, ecstasy and amphetamines (see Table 1). The ABS researchers calculated that overall profits were in the vicinity of $5.8 billion - for one year alone. The figures were shared with Anex by the researchers, and are part of a forthcoming report into Australia’s unobserved economy. Drugs that are produced within Australia, such as amphetamines and marijuana, have a far higher estimated profit margin than do imports such as heroin and cocaine.
are a substantial and seemingly growing sector of the trade. Likewise, the estimates do not factor in the markets for performance enhancing drugs such as steroids and peptides.
In 2010 Australians spent around $7.1 billion on cannabis, heroin, cocaine, MDMA and methamphetamines. Newly released analysis by the University of NSW found that Australian governments’ overall spending on law enforcement, drug treatment and harm reduction responses was approximately $1.7 billion in 2009/2010.
Previous analysis had been made of 2002/2003 drugs budget spending, leading researchers to note that by 2009/2010: “Overall spending has increased by a small amount. There is a notable exception though harm reduction is the only domain where spending has decreased. This is of concern, especially given the solid evidence-base for the effectiveness of harm reduction interventions.”
The analysis, by the university’s Drug Policy Modelling Program, found that: “The majority of direct government spending was in law enforcement, representing 66% of government expenditures. This was followed by drug treatment at 21%; and then prevention at 9%. A small proportion of spending occurred for harm reduction (2%).”
Total nominal Household Final Consumption Expenditure (prices paid by consumers) in 2010 was:
The ABS drugs market analysis does not include any estimates of the size of illicit markets for pharmaceutical drugs, which
Furthermore, the ABS analysis did not include any estimates of the size of the synthetic drugs markets, or the growing globalised markets of online illicit drugs. “If the traditional illicit drugs markets was $7 billion, it would be far higher if prescription drugs, online synthetics and the steroids markets were factored in,” said Anex CEO Mr John Ryan. The UNSW drugs budget analysis can be downloaded from the National Drug and Alcohol Research Centre. Visit www.ndarc.med.unsw.edu.au
Nominal Gross Value Added (margins made by the wholesale distributors and the retail distributors):
Cannabis:
$3.8b
Cannabis:
$3.7b
Amphetamines:
$1.5b
Amphetamines:
$1.3b
MDMA (Ecstasy):
$300m
MDMA (Ecstasy):
$205m
Heroin:
$750m
Heroin:
$411m
Cocaine:
$783m
Cocaine:
$263m
Total:
$7.1 billion
Total:
$5.879 billion
ABS researchers’ data provided to Anex.
Estimated Australian governments’ drugs budget spending, 2009/2010:
Prevention $156.8m = 9.2% Treatment $361.8m = 21.3% Harm Reduction $36.1m = 2.1% Law Enforcement $1123.3m = 66.0%
Total government spend on law enforcement $1123.3m vs Total government spend on harm reduction $36.1m
Other $23.1m = 1.4% Total $1701.1m = 100%
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PER CENT Source: National Drug and Alcohol Research Centre, 2013.
AFL doping claims spotlight injecting stigma: page 3
International Overdose Pharmacotherapy not Awareness Day: page 4 the pits in Kalgoorlie: page 7