CASH IN ON POT REVENUE, THINK-TANK URGES OTTAWA

VANCOUVER--The federal government should decriminalize marijuana and
tax the revenue, says a report released yesterday by the usually
conservative Fraser Institute.

Conservative estimates show the government stands to reap an estimated
$2 billion in potential revenues annually, said Steve Easton, a
professor of economics at Simon Fraser University and senior fellow at
the think-tank.

It's not a question of whether Canadians approve or disapprove of
marijuana use, Easton suggested.

"I think it's like prohibition in the U.S. in that period, in the
sense we've tried to suppress (marijuana use)," he said.

"We've not been successful in doing so and all we do is create an
industry that really gives organized crime a chance to get some revenue."

The benefits of legalizing are that organized crime would be shut out
and those harmed by marijuana could get treatment instead of going to
jail, Easton argued.

"It seems to me a far better use of our resources is to use those
resources to make it legal, tax it in an appropriate way and, to the
extent it causes certain kinds of social problems, then we can deal
with that as part of the revenue."

The study estimated there are some 17,500 marijuana grow-ops in B.C.,
where Easton said only 13 per cent of offenders are actually charged.
His report also found 55 per cent of those convicted receive no jail
time.

Easton said some 23 per cent of Canadians have admitted to using the
drug.

But Paul Shrive, head of the B.C. Association of Chiefs of Police,
dismissed the idea of taxing marijuana sales.

He said he sees ethical issues with government "making money off the
backs of addicted people," although he acknowledged it already
benefits from alcohol sales.

In 39 years in policing, Shrive said he's never met a person addicted
to "extreme" drugs who didn't start with pot. "I don't think it's
going to solve any (problems on the) social side," he said.

Prime Minister Paul Martin said last week the Liberals are committed
to carrying out their plan to decriminalize marijuana if re-elected.
Legislation died last month when Parliament was dissolved for the
election campaign.