Northern Territory Second Reading Speeches

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KAVA MANAGEMENT BILL 1998


Bills presented and read a first time.

Mr BURKE (Health): Mr Deputy Speaker, I move that the bills be now read a second time.

The Kava Management Bill provides for the regulation of the sale, supply and possession of kava in the Northern Territory. This new legislation is being introduced as part of a comprehensive package to minimise the harmful effects of kava use and to penalise illegal kava traders who may try to operate in the northern Territory after the commencement of this legislation.

This bill is an extremely important piece of legislation which is fundamental to public health and to minimising the costs of providing health services, particularly in the Arnhem region. The effect of the commencement of this legislation will be the imposition of an immediate ban on kava sale, supply and possession across the Northern Territory. Persons in the Northern Territory who are currently in possession of kava, particularly those profiting from the unregulated sale of kava, will need to take note of the provisions of this bill. Kava possessed illegally at the time of commencement of this legislation will be subject to seizure, and persons possessing it may risk prosecution. If those affected wish to avoid the consequences, they may wish to consider making arrangements now either to destroy the kava held or to transport it to a jurisdiction where the supply and possession of kava is permitted.

The bill provides for the declaration of 'licence area' where kava may be sold and used by residents of communities. This is subject to the issue of wholesale licences and retail licences in respect of these areas. A ban will effectively remain in force during the period when any applications made are being considered and community consultation is occurring.

I assure members that I will be looking for strong endorsement from the community before declaring an area to be a licence area. Members will agree that kava use has been a vexed problem in this region for many years. While there is a wide spectrum of opinion about the best course of action, government intervention has become inevitable.

Mr Deputy Speaker, as you would know, I travelled recently to Arnhem Land to talk first-hand with community leaders about the kava problem. They were unanimous in their call for the government to take decisive action to break the destructive grip that kava traders have on their communities. I was horrified by the insidious activities of these profiteers. They have undermined traditional Aboriginal laws and are ripping off communities. For example, in one Yolngu community, kava traders have paid off the traditional landowner and have no respect for the local law. These traders pay local Aboriginal people to sell kava. The Yolngu dealers operate continuously 3 shifts every night. They visit kava drinking sites and keep the drinkers intoxicated by pushing more kava into the circle. If the users do not have the cash, no worries, they book it up.

Consistent with this story, it is alleged that some Yolngu have authorised automatic deductions to be made from their bank or credit union accounts and channelled to kava traders every fortnight. This means that, when Mum goes to the bank on payday, there is not enough money to buy food.

Members may be aware of the recent seizure of 1 400-kg shipment of kava which was destined for Elcho Island. When approached for information about the shipment, the council clerk at Galiwinku said that he had been issuing emergency food rations to families who had spent all their money on kava. An application for the return of the kava was dismissed because the magistrate found that the authorised officer under the Food Act had acted properly by seizing the kava in the belief that the kava was not correctly labelled. It would appear that, as a result of the amount of news coverage given to this story, both in Australia and overseas, shipments are now being correctly labelled. This highlights the need for other regulatory measures to be introduced.

The kava profiteers have infiltrated Yolngu communities, paid off influential traditional lawmakers and hired local men to keep the pressure on kava users. This must stop. Members may ask how could this have been allowed to happen. It is a long story and I will not go into all the details today, but I will briefly recap.

In 1990, the government introduced a licensing system for kava trade which authorised Aboriginal councils to sell kava in Arnhem Land communities. This system was undermined when unlicensed kava dealers introduced high-quality kava and hired local agents to sell their product.

In 1994, the licensing system was dismantled due to changes in federal regulations which left the Northern Territory without the power to regulate kava trade. The Commonwealth and some states had been pressured to legalise ceremonial kava use by Pacific Islander migrants, and our law was made inoperative. Fixing one problem elsewhere in Australia has complicated the problem in the Northern Territory. The illegal kava trade thrived under these conditions, and the black marketeers became firmly entrenched in the economic and social systems of Yolgnu life. As kava use became heavier, the health of the users and the well-being of communities rapidly deteriorated.

We have been waiting for the Commonwealth and the states to agree on a national system of kava control, and this has finally eventuated. We have not been sitting on our hands. We took the initiative to establish a system in the Territory which suits our circumstances - this Kava Management Bill.

In October 1997, a national code of kava management was endorsed by federal, state and territory ministers. This code, together with amendments to the Customs and Food Regulations, offers an avenue for the Northern Territory government to regulate the sale, supply and possession of kava and to bring an end to the long and bitter kava saga. The government is taking up the challenge of intervening in an extremely complex and highly emotional situation. We need to act firmly against the kava traders while allowing Aboriginal communities the opportunity to reinstate their own laws, enabling the black market to be eradicated at its roots.

The government has thought long and hard about the best way to solve the kava problem. We have developed a policy which is based on firmness and compassion We have 2 choices when it comes to solving this kava problem: a complete kava ban, or regulating kava use. A complete ban would not be as effective in removing the kava black market. We might use force to stop traders and users, but a total ban is likely to make them draw closer together and resist the change more vigorously. On the other hand, regulation through the combined efforts of police, traditional Yolgnu law and Yolgnu community members is more likely to have long lasting effects.

In every community that I have visited, there were Aboriginal people who wanted an outright ban on kava, but the overwhelming desire was for regulation. The Yolgnu accept that this is their problem, but they need the government to intervene to ease the pressure. They asked me why the government has laws about alcohol and cannabis but not about kava.

Members have previously called for the government to act, and, now that the Commonwealth has amended its laws, we are able to proceed in the best interests of the Territory. The health, economic and social harm caused by over-use of kava in Arnhem Land is a public health issue, and it is our duty to end this misery.

This bill provides a framework for dealing with the kava problem, but it will take more than a piece of legislation to eradicate the profiteers. During my visits, several communities expressed concern that young people might turn to alcohol or cannabis use if kava were banned completely. They were afraid that alcohol and cannabis would be more harmful than kava. I am sure that people in Gove would not want to see an increase in the number of people who come to town to get drunk.

Under this bill, communities may apply to become licensed to sell and use kava if these problems do arise. The price of kava sold in licence areas will be regulated to make it unattractive for blackmarket kava traders to compete. Regulated kava prices will make more money available for family expenditure and stabilise community economies.

To make the prohibition aspects of the legislation effective, police and Liquor Commission staff will actively enforce controls in the region. The bill provides for heavy penalties, including lengthy periods of imprisonment to deter the profiteers. The reprieve derived from the immediate ban will give the Yolgnu the chance to re-establish traditional lines of authority and to work with police and Liquor Commission staff to eradicate illegal trade in their communities.

The government will need reliable and accurate data to assess whether communities should be declared licence areas. There are bound to be different stories about the availability of kava in the region following the enactment of the legislation and both Aboriginal and non-Aboriginal people will have a vested interested in promoting different scenarios.

Increases in other substance use, due to the reduced availability of kava, will need to be monitored carefully to enable us to avoid a blow-out in other health-related issues. A kava sentinel system will be established to track these changes. This system will utilise a number of objective data systems and will access key people in Yolgnu communities to collect information about changes in kava, alcohol, petrol and other drug use. The kava sentinel system's stringent and rigorous monitoring activities will produce accurate, reliable, hard-edge data to inform the government's decisions about future licensing.

The Police Administration Amendment Bill complements the Kava Management Bill by ensuring the powers police have in the enforcement of offences for illegal drugs apply also in respect of kava.

With this comprehensive package of initiatives the new bill, active enforcement strategies and a custom-built monitoring system, the government is better positioned to help turn around the health, economic and social outlook for people in kava-using communities of the Northern Territory. I now turn to the main features of the Kava Management Bill.

The offence provisions target those involved in illegal trade in kava. The maximum penalty for the supply of a commercial quantity of kava - that is, an amount equal to more than 25 kg - is imprisonment for up to 14 years. The Kava Management Bill restricts not only the sale and supply of kava, but also the possession, and thereby its consumption, to declared licence areas. Unlike those involved in illegal trade in kava, persons unlawfully possessing small quantities for personal use are not liable to prosecution, but are subject to the seizure and destruction of the kava in their possession.

A small quantity of kava is defined less than a trafficable quantity - that is, an amount weighing 2 kg or less or, where it is prepared as a drink, less than 25 L. These provisions apply to people who take kava outside of licence areas and to persons under the age of 18 years who possess kava anywhere in the Territory. This is seen as an effective way of dealing with consumers who do not comply with the provisions of the legislation. It is a method of enforcement that has an immediate effect without criminalising the behaviour.

The process for an area to be declared a licence area is commenced by an application from at least 10 residents of that area. As stated earlier, an area may only be declared a licence area after taking into the account the views of the local community. Provision also exists to seek and weigh up opinion from other interested persons and relevant professionals and organisations as considered appropriate. The bill precludes applications being made for licence areas in the major centres of the Northern Territory and provision is included for other places to be excluded by notice in the Gazette as the need arises. Kava has not been used to any great degree in these places and it is not intended that areas of its use be extended as a result of this legislation.

The sale and supply of kava is regulated through a system of wholesale and retail licences under the supervision of the Liquor Commission. Through the regulation-making powers provided and the powers given to the commission, licensees are subject to strict conditions in the way that they conduct their activities. In addition to the possible loss of licences, licensees face prosecution for offences carrying heavy penalties where they operate outside the provisions contained in the legislation. An example is where a licensee supplies kava outside the licence area in respect of which he or she holds a licence. The maximum penalty provided for supply of a commercial quantity is imprisonment for 8 years or, in the case of a body corporate, a fine of $100 000. The restriction on licensees are considered essential in the interest of health and safety.

The enforcement of the legislation is by appointed authorised officers, with provision for the automatic inclusion of police officers and liquor inspectors as authorised officers to enable them to perform their duties effectively. These officers are given wide-ranging powers to enter and search premises and persons without warrant and, where it is believed an offence has been committed, to seize kava and other things, including vehicles, that may have been used in the commission of an offence. On the finding of guilt in relation to an offence, the kava and any other things seized are forfeited to the Northern Territory. I commend the bills to the House.

Debate adjourned.


 

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