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Business saddled with $3b burden of drug use
Brisbane Times
April 22, 2007
ILLICIT drugs cost business more than $3 billion each year in lost productivity, absenteeism, crime and road accidents, prompting calls for business to invest in more effective ways of reducing the economic impact of substance abuse.
The illicit drug market, by drawing resources from legitimate businesses that supply legal goods and services and pay taxes, imposes a heavy burden on the community, government and the economy, a report released today says.
"If illicit drug use were reduced, the business sector would benefit not only from reduced labour costs and a bigger workforce, but also from reduced drug-related property crime and corruption and higher consumer demand for legally supplied products," the report said.
The report, which was prepared by a team of economists for the Australian Drug Law Reform Foundation, found the total cost to Australia each year of illicit drugs is at least $6.7 billion.
David Collins from Macquarie University, Helen Lapsley from the University of Queensland, and Robert Marks from the University of NSW say the potential for increased business efficiency and greater export competitiveness as a result of a reduction in illicit drug use should not be underestimated.
The $3.3 billion in costs to business represents nearly 2 per cent of total corporate profits, and the authors estimate the illegal drug market diverts $9 billion in spending from legitimate businesses.
"Drug use is usually seen as a problem for governments," Professor Collins told the Herald. "We have shown a lot of the costs are borne by businesses … so it is in their interest to reduce those costs."
The president of the Australian Drug Law Reform Foundation, Alex Wodak, said the report was more evidence the so-called war on drugs, focusing on criminal and legal sanctions at the expense of health and social programs, had failed.
"The business community needs to ask itself: is Australia responding effectively to the problem of illicit drug use … and is our response based on sound economic and business policy?" Dr Wodak said.
There was a minimal return on investment from a strategy that simply spent more on law enforcement, he said. "This is the one area of public policy that is an economics-free zone."
The report found the costs of crime attributed to drug use was $3.248 billion, while crimes where both drugs and alcohol were a factor cost a further $1.31 billion.
Health care costs were $74 million, while road crashes attributable to drugs cost $612 million, with businesses bearing 20 per cent of the costs.
Illicit drug use costs governments at least $2 billion a year. State governments wear 85 per cent of those costs because of their expenditure on jails and public hospitals.
Link
Brisbane Times
April 22, 2007
ILLICIT drugs cost business more than $3 billion each year in lost productivity, absenteeism, crime and road accidents, prompting calls for business to invest in more effective ways of reducing the economic impact of substance abuse.
The illicit drug market, by drawing resources from legitimate businesses that supply legal goods and services and pay taxes, imposes a heavy burden on the community, government and the economy, a report released today says.
"If illicit drug use were reduced, the business sector would benefit not only from reduced labour costs and a bigger workforce, but also from reduced drug-related property crime and corruption and higher consumer demand for legally supplied products," the report said.
The report, which was prepared by a team of economists for the Australian Drug Law Reform Foundation, found the total cost to Australia each year of illicit drugs is at least $6.7 billion.
David Collins from Macquarie University, Helen Lapsley from the University of Queensland, and Robert Marks from the University of NSW say the potential for increased business efficiency and greater export competitiveness as a result of a reduction in illicit drug use should not be underestimated.
The $3.3 billion in costs to business represents nearly 2 per cent of total corporate profits, and the authors estimate the illegal drug market diverts $9 billion in spending from legitimate businesses.
"Drug use is usually seen as a problem for governments," Professor Collins told the Herald. "We have shown a lot of the costs are borne by businesses … so it is in their interest to reduce those costs."
The president of the Australian Drug Law Reform Foundation, Alex Wodak, said the report was more evidence the so-called war on drugs, focusing on criminal and legal sanctions at the expense of health and social programs, had failed.
"The business community needs to ask itself: is Australia responding effectively to the problem of illicit drug use … and is our response based on sound economic and business policy?" Dr Wodak said.
There was a minimal return on investment from a strategy that simply spent more on law enforcement, he said. "This is the one area of public policy that is an economics-free zone."
The report found the costs of crime attributed to drug use was $3.248 billion, while crimes where both drugs and alcohol were a factor cost a further $1.31 billion.
Health care costs were $74 million, while road crashes attributable to drugs cost $612 million, with businesses bearing 20 per cent of the costs.
Illicit drug use costs governments at least $2 billion a year. State governments wear 85 per cent of those costs because of their expenditure on jails and public hospitals.
Link
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