CEOS FEAR REEFER MADNESS

Decriminalization Viewed As Peril To Workplace

OTTAWA - Canada's largest and most influential business group warns that a
federal bill to decriminalize marijuana could harm the economy. It is
calling for the legislation to be delayed until its impact on the workplace
has been thoroughly studied.

The Canadian Council of Chief Executives, which represents 150 major
multinational corporations, says pushing ahead with the legislation could
increase injuries, absenteeism and poor job performance.

Executive vice-president David Stewart-Patterson said substance abuse in
the workplace is costing the economy an estimated $18.4-billion a year, and
that is likely to be exacerbated by the relaxation of cannabis laws.

"We really don't know what the effect is going to be on the workplace in
terms of health and safety, in terms of productivity and absenteeism and
employer-paid health costs," said Mr. Stewart-Patterson.

"Maybe it would be a good idea to do our homework and figure out what those
costs might be so we can make an informed choice before going ahead with
the bill."

Paul Cellucci, the U.S. ambassador to Canada, has predicted more liberal
Canadian marijuana laws would result in a U.S. border crackdown at
crossings that are already congested.

Business groups have likewise raised concerns over possible tie-ups
resulting from more liberal marijuana laws, saying the current border
morass already costs Canadian businesses billions of dollars a year. It is
estimated that $1.2-billion in goods and services cross the border each day.

Opposition Conservatives, who insist the draft legislation is deeply
flawed, have themselves renewed calls to shelve the marijuana bill until
trade disputes with the Bush administration over beef and softwood lumber
are resolved.

Mr. Stewart-Patterson said it is imperative that Ottawa conduct a major
study of how marijuana affects job performance before it wipes out criminal
penalties for possession of less than 15 grams of marijuana and hashish.

There are only a few known studies of the effects of cannabis use in the
workplace but none has been done in Canada, according to Mr.
Stewart-Patterson, whose organization has been researching the subject.

Mr. Stewart-Patterson points to a 1999 study of New Zealand forestry
workers that suggests looser drug laws could lead to higher on-the-job
injuries and lost days.

The Canterbury University study discovered cannabis users in New Zealand's
forestry sector had almost three times as many lost-time injuries as
non-users and twice the number of sick days off.

Although the users said getting stoned helped them do a "better quality
job," the study concluded that cannabis use actually increased their
fatigue and the chances they would make errors in judgment and get involved
in an accident.

The U.S. National Institute on Drug Abuse also lists a 1996 study by Texas
Christian University of marijuana use among 4,600 municipal employees in
four cities in the Southwest. About 8% were marijuana users and the survey
found they reported more absenteeism, tardiness, compensation claims and
job turnover than workers who had not used the drug.

Mr. Patterson said big companies worry decriminalization would encourage
more workers to smoke cannabis, impairing the workplace and the economy.

He points to a 1992 study by the Canadian Centre on Substance Abuse that
found the total cost of drug and alcohol abuse on the job was $18.4-billion
a year.

However, Mr. Stewart-Patterson said that study did not break out the costs
of legal and illegal drugs in the workplace, which is why the business
group is calling for a delay in the bill's passage until the government
accumulates "better information in terms of the potential impact of
decriminalization on the workplace and in particular health and safety and
productivity."

The legislation now before Parliament would impose fines of $150 for adults
- -- and $100 for minors -- who are caught in possession of up to 15 grams of
cannabis. Companion legislation is aimed at curbing "drug drivers."

Supporters of decriminalization refer to a Senate report in 2002 that found
the cost of prosecuting drug offences in 2000-2001 was $57-million, with
only $5-million spent on cannabis possession offences.

Irwin Cotler, the Minister of Justice, reintroduced the marijuana bill this
month.

Federal officials noted New York, California and at least eight other
states have already decriminalized simple marijuana possession, a fact
acknowledged by Mr. Cellucci. But the U.S. ambassador said this month he
was perplexed by the timing of the new bill. "Why, when we're trying to
take pressure off the border, would Canada pass a law that would put
pressure on the border?" he said.

"If people think it's easier to get marijuana in Canada, then our people at
the border are going to be on the lookout, and I think they will stop more
vehicles ...'

Paul Martin, the Prime Minister, said Canada reserves the right to pass
laws as it sees fit. "Firstly, the legislation is before the House of
Commons, then the parliamentary committee will have its discussions on all
the various points, and we'll wait to see the legislation that comes from
that," he said. "But Canada will make its own laws, pure and simple."