ADDICTS FUEL 7 BIL. INDUSTRY

AUSTRALIA'S illegal drug trade rivals the country's biggest
industries.

The $7billion illegal drug trade is equal in size to the oil industry
and bigger than the tobacco industry.

It also represents more money than Australians spend on gas,
electricity and fuel each year.

Economic analysts said the drug trade could be worth up to
$9.6billion.

An amazing 2000kg of cut heroin - worth about $2billion - is poured
into Australia each year.

The massive heroin flood is part of a $7billion illegal trade to
Australia, with Melbourne accounting for at least a third.

The $7billion translates to about seven tonnes of heroin imported to
Australia annually. One kilo of heroin has a street value of $1 million.

But the figure combines the value of the imported heroin, cocaine and
marijuana to Australia.

It does not include the trade in locally produced drugs, estimated at
$2billion a year.

About $85billion worth of illegal drugs have been imported into
Australia in the past 15 years. Another $30billion has been produced
locally.

But fighting the drug war has cost more than $200billion since
1984.

Despite the massive cost, crime authorities admit the fight against
drugs under present policy has been lost.

The enormous taxpayer cost has been spread across law enforcement
services, public health, treatment and counselling services, crime,
prisons, social security and costs to families.

Associate Professor Robert Marks, of NSW University, found heroin
addicts obtained the bulk of their money from drug dealing, crime,
prostitution and social security.

"This is a guide to the extent of crime caused by those supporting a
drug habit," he found.

An examination of the trade by Access Economics found about 90per cent
of Australia's drug revenue went into the hands of organised crime.

"The illegal drugs industry in Australia is a major industry,
equivalent in size to the oil industry and larger than the tobacco
industry," Access Economics found.

"It generates substantial costs for society, while generating no
government revenue. Prohibition appears to have failed to prevent its
growth."

Taxpayers have footed an average $13billion bill annually over the
past 15 years to fight the drug war. But despite the huge cost, some
authorities hold little hope of stemming the flow of narcotics into
Australia.

Authorities admit last year's 400kg heroin seizure did not dent local
supply of the drug.

"It would be very optimistic to think that seizure would dramatically
affect heroin supply," said Australian Federal Police commissioner
Mick Palmer.