Writing for The Weekly Times, Penington Institute CEO John Ryan makes the case for legalising and regulating cannabis – not just as a public health measure, but as a transformative economic opportunity for rural and regional Victoria.
New economic modelling commissioned by the Penington Institute reveals that a tightly controlled legal cannabis market could create more than 8,000 full-time jobs in country Victoria and inject $9 billion into local economies over the first decade.
Beyond the economic benefits, Ryan says cannabis regulation would also improve public health and safety by stripping power from criminal networks and putting strong rules in place around cannabis use.
Cannabis regulation is an economic lever waiting to be pulled. There is a real prize here – but only if we're ready to seize this opportunity.
The Penington Institute’s blueprint outlines a framework for how state governments could establish a licensed, regulated adult-use cannabis system – similar to models already operating in Canada and more than 20 U.S. states.
The proposed model includes licensing fees for producers and retailers, with that revenue returned to state coffers to support local infrastructure, mental health, housing, and other community services.
A legal cannabis industry would create jobs across the entire production chain – from greenhouse cultivation and processing, to transport, logistics, retail, and research and development.
Ryan said that Victoria was uniquely positioned to lead the country on this issue:
Legal and regulated cannabis has the potential to be a dynamic agricultural industry, attracting new investment, stimulating research and development, and sparking innovation
International case studies support the Institute’s findings. In Canada, legal cannabis businesses invested $32 billion into infrastructure between 2018 and 2021, adding nearly $49 billion to GDP and supporting almost 100,000 full-time jobs annually.
Ryan says the evidence is clear – and the time to act is now.
Read the full op-ed here published in the The Weekly Times on 23 July 2025.
Victoria is in the box seat to reap a similar economic dividend from embracing commonsense cannabis reform.