Prime Minister Jotham Napat had assured the  members of parliament of the  potential economic returns from industrial hemp and medical cannabis cultivation  that the industry could generate significant market value into government revenue.

Prime minister Napat  made the statement went presenting the amendment bill on the Industrial Hemp and Medical Cannabis Act yesterday

Mr Napat provided an example of cultivating 180 plants on one hectare to illustrate the potential returns of VT 4 billion and the value revenue collection to the government will be at VT 220 million.

He stated that the market value is at VT 48 billion per hectare and Vanuatu would get around VT 2 billion.

MPs Raise Questions Over Coordinator’s Expertise

The amendment introduced the  criteria for appointing a Coordinator to administer and coordinate matters under the Act.

Napat said the existing legislation did  specify the qualifications, skills and experience required for the position.

Malekula MP Paul Paolo called for transparency in the recruitment process and said calls for appointment of foreign expert to the coordinator position  

Fellow Malekula MP Gracia Chadrack questioned whether or not the local expert to the post should have good knowledge on cultivation of the cannabis as the country is yet to farm such plant

Infrastructure and Public Utilities Minister,  Xavier Harry said the position would fall under the Public Service Commission and recruiting a foreign expert may not be in accordance of the Act.

In response, Mr Napat said the Government could employ a local in the coordinator position and recruit a foreign expert to work with  him/her

The Industrial Hemp and Medical Cannabis Act was passed in 2021 and the first   amended was made in 2024 to meet the local Bank conditions..

 PM Napat said the Government had issued almost 10 licences to interested companies not able to operate due the local bank requirement process and conditions.