Jersey’s medical cannabis industry will be able to produce “meaningful returns” in the next few years, the Deputy Chief Minister has claimed after a proposal for a new medical cannabis farm was submitted on Wednesday.
According to the Jersey Evening Post, Senator Lyndon Farnham said the island’s medical cannabis market would continue to grow, and the 20% tax rate for those cultivating the crop had been “carefully considered.”
The companies could be taxed 20% from early next year – providing the draft regulations are adopted. The rate has a solid base as it is reported that Guernsey had already applied a 20% rate since the beginning of 2020.
Mr Farnham added the new proposal about a new hub to produce cannabis-based medical products on the island for the UK, and the European markets is something he could support.
He said: “This is positive news for the industry, which is still in the early stages of development. It also shows confidence in the potential growth of the sector.
“I am pleased to see the [proposed] refurbishment of the disused glasshouse, as it will be an effective use of the land and fits well with the rural economy strategy.”
The planning application of the medical cannabis farm will be submitted by GroVida Jersey Ltd to produce cannabis-based medical products to export to the UK and Europe.
The company, Jersey Evening Post reported, has applied for a licence to cultivate cannabis in several facilities on the island.
Holme Grown managing director Stanley Payn said: “It’s important to note that this is only a proposal at the moment, but it is exciting to combine three projects that will benefit the future economy of the island.
“A new care home facility in the east is much needed, together with a Hospice fundraising outlet that will complement the site for the benefit of the eastern community.
“The parish of Grouville is well aware of the potential of the scheme, which will hopefully make active a site that was [previously] a hub of activity.”