Download ice - Parliament of Victoria

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ACC Submission into the supply and use of Methamphetamines,
particularly ‘ice’
February 2014
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Contents
ACC Submission to the Victorian Parliamentary Inquiry into ‘Ice’ Introduction
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Committee Question 1: To what extent has the ACC examined the production, supply and use of
methylamphetamine, and particularly ‘ice’? To what extent does the ACCs High Risk and
Emerging Drugs (HRED) Determination address methylamphetamine, and particularly ‘ice’,
production, supply and use. What intelligence has been gathered for this Determination
regarding methylamphetamine, and particularly ‘ice’, used in Victoria? What intelligence can
be made available to the Committee for the purposes of its inquiry?
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Term of Reference 1: Supply of methamphetamine including direct importation and local 9
manufacture of final product and raw constituent chemical precursors and ingredients
Committee Question 2: To what extent is methylamphetamine and particularly ‘ice’ brought 9
into Victoria from other states and territories (which?), or from overseas countries (which)?
Committee Question 3: How is imported 'ice' being introduced/smuggled into Australia? What 11
are the most common methods for importation and what methods of concealment are used?
To what extent is methylamphetamine arriving in Australia through parcel post, following
online sales? How is this being addressed?
Committee Question 4: To what extent is methylamphetamine manufactured in clandestine 12
laboratories in Australia, and particularly in Victoria?
Committee Question 5: What production methods are currently used in Victoria for 14
manufacturing methylamphetamine? To what extent have methods of production changed
since 2005?
Term of Reference 2: Supply and distribution of methamphetamine and links to organised crime 16
organisations including outlaw motorcycle gangs
Committee Question 6: To what extent are OMCGs involved in the production and supply of 16
methylamphetamines, and particularly ‘ice’ in Victoria?
Committee Question 7: What is the nature of the involvement of organised crime in the
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production and supply of methylamphetamines, and particularly ‘ice’ in Victoria?
Committee Question 8: What other (and which) organised crime groups, or others, are involved
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in the production and supply of methylamphetamine, and particularly ‘ice’ in Victoria?
Committee Question 9: Has the involvement of organised crime in the production and supply of
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methylamphetamines, and particularly ‘ice’ in Victoria changed since 2005?
Term of Reference 3: the nature, prevalence and culture of methamphetamine use in Victoria,
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particularly amongst young people, indigenous people and those who live in rural areas
Committee Question 10: To what extent is methylamphetamine, and particularly ‘ice’, used in
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Victoria and, in particular, in rural or urban areas? How does this compare with other
jurisdictions in Australia?
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Term of Reference 4: links between methamphetamine use and crime, in particular crimes 25
against the person
Committee Question 11: How much violent crime in Australia, and particularly Victoria, is 27
linked with methylamphetamine use, particularly ‘ice’?
Term of Reference 5: Short and long term consequences of methamphetamine use
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Term of Reference 6: The relationship of methamphetamine use to other forms of illicit and licit 34
substances
Committee Question 12: What, if any, harm reduction/education measures would the ACC 35
support in attempting to minimise the harms associated with methylamphetamine use and
‘ice’ in particular?
Term of Reference 7: The adequacy of past and existing state and federal strategies for dealing 36
with methamphetamine use
Term of Reference 8: Practice strategies to address methamphetamine use and associated crime, 36
including regulatory, law enforcement, education and treatment responses
Committee Question 13: How should the clandestine manufacture of methylamphetamines 36
best be addressed? Should the accessibility and availability of precursor chemicals be more
strictly regulated or controlled? If so, how and at what level, including point of purchase? Are
border controls on precursors adequate at present?
Committee Question 14: How effective are state laws in investigating, addressing and
combating (meth)amphetamine use? What, if any, legislative reform is needed?
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Committee Question 15: How effective are asset confiscations laws in deterring organised 38
criminal activity? How could they be improved?
Committee Question 16: Are there national or cross-jurisdictional issues that have an impact on 39
or concern for Victoria (for example, inconsistent state laws, resourcing problems at national
and state level, state border smuggling and control) that you would like to comment on?
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ACC Submission to the Victorian Parliamentary Inquiry into ‘ice’
Introduction
Established under the Australian Crime Commission Act 2002, the Australian Crime Commission
(ACC) commenced operations on 1 January 2003, and is Australia’s national criminal intelligence
agency. The ACC is the only Australian agency solely dedicated to understanding and combating
serious and organised crime of national significance.
The ACC works in partnership with law enforcement, national security, government and industry to
discover, understand and respond to serious and organised crime in Australia. We do this by
gathering and sharing criminal intelligence to identify new and emerging threats, filling gaps in the
national criminal intelligence picture and by leading or collaborating in joint investigations and
intelligence operations to disrupt or prevent serious and organised criminal activities. Through this
work we produce a national picture of the threat and harm posed to Australia by serious and
organised crime.
The ACC Board consists of the ACC and 14 other law enforcement, regulatory and national security
agencies, including Victoria Police. The Board is responsible for providing strategic direction to the
Australian Crime Commission, approving the use of the Crime Commission’s special coercive
powers, and is responsible for determining special operations and special investigations. One of the
Board-approved special intelligence operations is the High Risk and Emerging Drugs Determination.
Definitions
Although the terms methylamphetamine and ‘methamphetamine’ are synonymous, and different
Australian pieces of legislation use one or the other of the terms, the ACC prefers to use the term
methylamphetamine and we will use that terminology in this submission. The terms crystal
methylamphetamine and ice will be used inter-changeably. While the crystal form of
methylamphetamine is typically of higher purity, appearance alone is not a reliable indicator. For
convenience, in this submission the term crystal methylamphetamine will be used to describe all
methylamphetamine which is crystalline in appearance and hence is perceived by users to be ice,
regardless of the related purity.
Methylamphetamine has four common forms—tablet, crystal, base (also referred to as ‘paste’) and
powder (also referred to as ‘speed’). Powder is the most common form used in Australia.
Methylamphetamine can be swallowed, snorted, smoked or injected. The crystalline form of
methylamphetamine, often referred to as ‘ice’, is considered the most potent form. Crystal
methylamphetamine is generally heated and the vapours inhaled. It can also be injected after being
dissolved in water.
Some data received by the ACC and included in ACC assessments refers to the more generic term
amphetamine-type stimulants (ATS), which includes substances other than methylamphetamine
such
as
amphetamine
and
sometimes
phenethylamines
including
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methylenedioxymethylamphetamine (MDMA). The term ATS will be retained in some
circumstances in this submission, with the range of substances included noted where possible.
Committee Question 1: To what extent has the ACC examined the production, supply and use of
methylamphetamine, and particularly ‘ice’? To what extent does the ACCs High Risk and
Emerging Drugs (HRED) Determination address methylamphetamine, and particularly ‘ice’,
production, supply and use. What intelligence has been gathered for this Determination
regarding methylamphetamine, and particularly ‘ice’, used in Victoria? What intelligence can be
made available to the Committee for the purposes of its inquiry?
The High Risk and Emerging Drugs Determination
On 15 June 2011, the ACC Board approved the Australian Crime Commission Special Operation
Authorisation and Determination (High Risk and Emerging Drugs) 2011 (the HRED Determination).
The HRED Determination covered all illicit drug markets. The Determination was reviewed in mid2013 in response to changes in Australian illicit drug markets, in particular around new
psychoactive substances and new types of performance and image enhancing drugs, and it was
recommended that the Board approve a special operation with a slightly amended and more
comprehensive ambit.
Accordingly, on 4 September 2013, the Board of the Australian Crime Commission approved the
Australian Crime Commission Special Operation Authorisation and Determination (High Risk and
Emerging Drugs No. 2) 2013 (the HRED2 Determination), which remains in effect until 30 June 2016.
For the purposes of the HRED2 Determination, high risk drugs are defined in the Determination
Instrument as “any controlled drug or drug analogue of a controlled drug, controlled plant or
controlled precursor; or a border controlled drug or drug analogue of a border controlled drug,
border controlled plant or border controlled precursor as those terms are defined for the purposes
of Part 9.1 of the (Commonwealth) Criminal Code.” This definition covers methylamphetamine in its
various forms, including crystal methylamphetamine (‘ice’), and precursor chemicals used in the
production of methylamphetamine.
Aims
The HRED2 Determination aims to:
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enhance the national understanding of high risk and emerging drug markets through the
production of regular, timely and proactive intelligence, indicators and warnings
support law enforcement agencies’ target development and investigations in relation to
high risk and emerging drug markets through the use of ACC coercive powers and by
identifying the highest risk criminal networks in the market
identify systemic and sectoral vulnerabilities which are being exploited by participants in
HRED markets and assess the resultant impact on threat levels for the respective markets
reduce the impact of assessed vulnerabilities by providing advice and support which
contributes to legislative and policy responses designed to reduce the risk to a tolerable
level
make a tangible contribution to minimising drug-related health, social and economic harms
in accordance with the three pillars of the National Drug Strategy 2010–15 (demand, supply
and harm reduction) through the Organised Crime Strategic Framework (OCSF) and drugPage | 5
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related components of the Organised Crime Threat Assessment (OCTA) and the Organised
Crime Response Plan (OCRP).
The ACC’s Organised Crime Management Committee (OCMC) has approved a number of projects
and investigations under the auspices of the HRED and HRED2 Determinations that are relevant to
the methylamphetamine market, including Projects Baystone, Protege and Alberta. Project
Baystone covers the methylamphetamine market per se, Project Protege covers new and emerging
supply and manufacturing trends in the market and Project Alberta targets the diversion of
chemicals from legitimate industry to illicit drug production.
Findings from projects, operations and investigations which were conducted by the ACC pursuant
to its Highest Risk Criminal Targets and Targeting Criminal Wealth Determinations will also be
discussed, to the extent that these are relevant to the methylamphetamine market. The related
investigations identified and/or disrupted the importation, trafficking, supply and production of
methylamphetamine and related precursor chemicals, usually as part of multi-agency initiatives.
The ACC assessed in 2012 that the risk posed by the methylamphetamine market was very high,
constituting the highest risk of all organised crime and illicit drug markets. The 2012 assessment
remains appropriate today, and in fact, the risk posed by the methylamphetamine market has
increased since 2012. Consequently, the methylamphetamine market is the highest priority of the
HRED2 Determination.
International context
It is important to understand that the problems being faced in Victoria are not isolated to that
state, or indeed to Australia. The problems posed by crystal methylamphetamine are national and
global, and there is currently little cause for optimism.
The United Nations Office on Drugs and Crime (UNODC)’s World Drug Report 20131 noted that
there are signs the market for ATS is expanding, with increases in seizures and reported use,
spreading manufacture and the development of new markets. The use of ATS (excluding MDMA),
remains a global issue and appears to be increasing in most regions. In 2011, an estimated 0.7 per
cent of the global population aged 15–64, or 33.8 million people, had used ATS in the preceding
year. The UNODC report identified an increase in the ATS market in Asia’s developed economies,
notably in East and South-East Asia, and also an emerging market in Africa, evidenced by increased
precursor diversions, methylamphetamine and ATS seizures and methylamphetamine manufacture.
The estimated annual prevalence of ATS use in Asia in 2011 was found by the UNODC to be higher
than the global average.
1
United Nations Office on Drugs and Crime, 2013, World Drug Report 2013, New York.
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At the global level, the weight of ATS seizures increased to a new high of 123 tonnes in 2011, more
than double the 60 tonnes seized in 2005 and a 66 per cent increase over the 74 tonnes seized in
2010. Methylamphetamine accounted for 71 per cent of global ATS seizures in 2011. Mexico
accounted for the greatest proportion of methylamphetamine seized in 2011, with the weight of
seizures more than doubling, from 13 tonnes to 31 tonnes within the space of a year, surpassing
the United States for the first time. Methylamphetamine tablets remain the predominant form of
ATS used and seized in East and South-East Asia; however seizures of crystal methylamphetamine
increased significantly in 2011, from approximately 7 tonnes in 2010 to 8.8 tonnes.
Another 2013 UNODC report focused on illicit drug markets in East and South-East Asia2 found that
the market for ATS in the Asia and Pacific region continued to expand in 2012. Thirteen of the 15
countries covered by the report reported methylamphetamine as the primary or secondary drug of
use. Seizures reached record highs, with methylamphetamine manufacture continuing to spread
throughout the region, with some 385 illicit synthetic drug manufacturing facilities dismantled in
East and South-East Asia in 2012.
Regional integration in East and South-East Asia is being exploited by transnational organised crime
in order to expand its activities in the region. The misuse of economic integration for the illicit
trafficking of drugs and other contraband will continue to pose a significant threat to security, good
governance, human rights and sustainable development in the region.
Although methylamphetamine tablets are increasingly being used in the region and seizures have
increased substantially, the rate of increase in the use of crystal methylamphetamine is much more
pronounced. The total weight of crystal methylamphetamine seized in the region in 2012 increased
by 12 per cent, from 10.2 tonnes in 2011 to 11.6 tonnes.
In China, the market for methylamphetamine and other synthetic drugs is continuously expanding,
particularly among young drug users. The risk of diversion of precursor chemicals and
pharmaceutical preparations used in the manufacture of methylamphetamine and other illicit drugs
continues to be high. Trafficking of crystal methylamphetamine into Indonesia by transnational
organised criminal groups continues to be a major concern. The weight of crystal
methylamphetamine
seized
in
2012
increased
75
per
cent,
from
1.17 tonnes in 2011 to 2.05 tonnes, the highest total ever reported in Indonesia.
In 2012, Japan reported the largest weight of crystal methylamphetamine seized since 2003. Japan
has a large methylamphetamine market that is driven by high drug prices. Over the last few years,
the importation to Japan of methylamphetamine from countries in Central and South America, in
particular Mexico, has increased. Similarly, crystal methylamphetamine manufacture, trafficking
and use remain the most significant drug threats in Malaysia. Transnational drug trafficking groups
are increasingly targeting Malaysia, both as a destination and transit country for
methylamphetamine and other illicit drugs, as well as for the manufacture of crystal
methylamphetamine and MDMA tablets.
Methylamphetamine seizures in tablet and crystal form have increased substantially in Thailand
over the last five years, reaching historically high levels in 2012. In 2012, the number of arrests and
drug treatment admissions relating to this drug were the highest ever reported. Transnational
2
UNODC, 2013, Patterns and Trends of Amphetamine Type Stimulants and Other Drugs: Challenges of Asia and the Pacific, New York.
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criminal groups continue to target Thailand as a major transit country for trafficking illicit drugs and
precursor chemicals to international markets.
Transnational organised criminal groups continue to use the Pacific Island states and territories as a
transit point for trafficking methylamphetamine and precursor chemicals to and from Asia. These
groups also seek to use South Asia as a major base, given the high availability of the precursor
chemicals necessary to manufacture illicit drugs within the region.
Drug trafficking syndicates from Africa and Iran, and others with links to China and Hong Kong,
traffic methylamphetamine into and through South-East Asia by air transport and sea cargo
containers, while Indian drug trafficking networks smuggle precursor chemicals to drug
manufacturing locations in the region.
National Context
The ACC believes that the risk posed by crystal methylamphetamine is rapidly evolving and
expanding, due to push factors on the demand and supply side of the market. The ice market is an
existing problem which is getting worse. These factors include:
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the increasing use of this form of methylamphetamine
the widespread negative impact of this market, including the associated tangible medical
and psychological harms
the fact that crystal methylamphetamine is often smoked—as opposed to being injected—
the intense and rapid ‘high’ that is generated by this method of administration and the
corresponding severe adverse reaction once the high wears off
the risks posed to disadvantaged groups by crystal methylamphetamine
the violence that can be directly linked to its use
the presence of sophisticated domestic and transnational organised crime groups in the
market.
There has been an upward trend in the use of crystal methylamphetamine among groups of regular
drug users in Australia over the past few years, although methylamphetamine powder, often
referred to as ‘speed’, continues to be reported as the most widely used form of
methylamphetamine in Australia. Border detections and domestic seizures are at record levels. The
Australian methylamphetamine market remains robust, and is likely expanding. Increases in
domestically produced and imported methylamphetamine are being absorbed by a domestic
market which appears to retain a level of residual demand.
The market is supported by increasingly diverse and concerning domestic and transnational supply
sources, for both the drug and its precursors. There is evidence that some crime groups that
previously specialised in other drug markets are now focusing their activities on the
methylamphetamine market.
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Response to Terms of Reference and Committee Questions
Term of Reference 1: Examine the channels of supply of methylamphetamine including
direct importation and local manufacture of final product and raw constituent chemical
precursors and ingredients.
Committee Question 2: To what extent is methylamphetamine and particularly ‘ice’ brought into
Victoria from other states and territories (which?), or from overseas countries (which)?
Traditionally, the domestic methylamphetamine market has been largely supplied by domestic
production. It is not yet clear what has driven the recent increase in importations of
methylamphetamine, though it is likely that the high prices for which the drug is sold in Australia,
and the resultant high profits to be made, are an important draw-card for transnational organised
crime. Similarly, tightening of domestic controls on precursor chemicals over the past several years
may have contributed to the growth in methylamphetamine importations. The increase in
methylamphetamine imports does not appear to have coincided with indicators of a decrease in
local production, as there are still significant illicit precursor importations occurring and the number
of clandestine laboratories detected nationally is at record levels.
The ACC assesses that more methylamphetamine is being supplied to a market where demand is
increasing, and where new sources of demand are being identified. Without knowing the total size
of the domestic methylamphetamine market, it is difficult to determine the respective proportions
of the supply side of the market that are attributed to importation and domestic manufacture. The
ACC is confident that the proportion of methylamphetamine supply met by importations is
increasing—largely due to the popularity of ice—but we suspect that domestic manufacture
continues to supply a reduced majority of the market (ie the rate of increase of imports exceeds the
rate of increase of domestically manufactured methylamphetamine).
Cross-jurisdictional trafficking of ice and its precursor chemicals
ACC investigations and file holdings (derived from Commonwealth, state and territory partners)
indicate that methylamphetamine and ice is trafficked from Victoria to all other states and
territories and from other states into Victoria. Cross-jurisdictional trafficking occurs via motor
vehicle, commercial and light aircraft and air freight and, in the case of distribution to Tasmania,
ferry.
The ACC maintains a National Criminal Target List (NCTL), derived from its own holdings and those
of partner agencies, to identify nationally significant organised crime syndicates and individuals
who are impacting on Australia. The information captured for the NCTL is used for both operational
and strategic outcomes and informs decision-making concerning appropriate preventative and
investigative responses to those targets that are assessed to pose the highest threat.
Of the Victoria-based targets recorded on the NCTL, 56 per cent are recorded as having
involvement in the methylamphetamine and precursors market, underlining the primary risk posed
by this drug market. Additional interstate-based targets are recorded as being involved in
methylamphetamine supply that impacts on the Victorian market, whether by importing,
manufacturing or trafficking the drug or its precursors. Victoria is also listed in several cases as the
source of methylamphetamine distributed in other jurisdictions. The majority of targets recorded as
being involved in the Victorian methylamphetamine market are involved in multiple criminal
activities, including multiple illicit drug markets.
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Importations of Ice and its precursor chemicals
As noted previously, Australian users of methylamphetamine, including ice, pay a premium price
compared to their overseas counterparts, making importations to Australia attractive and
profitable.
For example, prices for a kilogram of methylamphetamine in select overseas countries based on
UNODC and European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) data were:
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China: US$6,000 per kg (UNODC 2010) = A$6,5223
USA: US$90,000 per kg (USDEA 2011) = A$97,826
Japan: US$200,000 per kg (UNODC 2010) = A$217,391
Germany: EUR79,000 per kg (EMCDDA 2011) = A$121,538
Czech Republic: EUR53,000 per kg (EMCDDA 2011) = A$81,538
UK: GBP100,000 per kg (Home Office 2012) = A$181,818
Canada: CAD180,000 per kg (RCMP 2011) = A$189,474
By way of comparison, according to the ACC’s 2011–12 Illicit Drug Data Report (IDDR), the national
median price of a street deal (weighing an average of 0.1 grams) in Australia in that reporting
period was A$59. Based on the above pricing estimates, this equates to a potential return of
A$590,000 per kilogram. The IDDR reveals that larger quantities also almost always exceeded
overseas prices, with the price of a kilogram of crystal methylamphetamine in 2011–12 ranging
between A$280,000 and A$330,000 in Victoria and A$200,000 and A$250,000 in New South Wales.
Due to the significant proportion of domestic production of methylamphetamine, the difference in
price is not explained by a requirement to import the drug. The difference in price is also not
explained by higher purity levels in this country.
Prices for pseudoephedrine—a precursor often used in methylamphetamine production— show a
similar mark-up in Australia. According to the UNODC, pseudoephedrine can be purchased in both
China and India for between US$600 and US$2,000 (A$652–A$2174) per kilogram, whereas in
Australia, the 2011–12 IDDR reported the price for a kilogram of pseudoephedrine ranged between
A$35,000 and A$100,000, with the A$100,000 per kilogram price being more consistent with
Customs and Border Protections figures.
Ice and precursor chemicals consumed in Victoria are sometimes directly imported into Melbourne,
and on other occasions imported into other Australian air and sea ports (for example Sydney and
Perth) and then transported to Melbourne. Similarly, ice and precursor imports into Melbourne
may subsequently be distributed interstate—the determining factors tend to be demand for the
product at the time that the importation is arranged and the geographic spread of the criminal
connections of the importing network.
Advice from Customs and Border Protection is that border detections of methylamphetamine have
increased significantly in 2013 in comparison with 2012, both in terms of number and weight. Most
of the 2013 shipments, both number and weight, have emanated from China. The IDDR reports that
during 2011–12, the most prominent embarkation points for ATS (excluding MDMA) detections at
the Australian border were India, Hong Kong and China by number and Mexico, Hong Kong and
Canada by weight.
3
All Australian dollar equivalents equate to the value of the dollar as at 1 November 2013.
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Authorities are detecting Iranian produced methylamphetamine being transhipped through SouthEast Asia and to Australia. It is likely this pattern of trafficking will continue. Iranian
methylamphetamine is characterised by very high purity, indicating large scale production utilising
high quality materials. West African organised crime groups are also prominent traffickers of
methylamphetamine throughout South-East Asia, the Middle East and into Europe and import into
Australia. From a global perspective, it is notable that there appears to currently be more
production of methylamphetamine in Mexico than at any other time in history. Mexican crime
groups are implicated in cocaine importations to Australia and it is likely this will eventually extend
to methylamphetamine importations, if this is not already occurring.
Organised crime groups which may have traditionally focused on importing particular illicit drugs,
for example heroin or cocaine, have commenced importing multiple illicit commodities, particularly
methylamphetamine. It is highly likely that this change in market involvement is a result of
consumer demand and the ability to obtain significant profits.
Committee Question 3: How is imported 'ice' being introduced/smuggled into Australia? What
are the most common methods for importation and what methods of concealment are used? To
what extent is methylamphetamine arriving in Australia through parcel post, following online
sales? How is this being addressed?
According to the IDDR, during 2011–12, parcel post accounted for the majority of ATS (excluding
MDMA) detections by number, followed by air cargo, air passengers/crew and sea cargo. During
the same period, sea cargo accounted for the largest proportion of ATS (excluding MDMA)
detections by weight, followed by air cargo, parcel post and air passengers/crew.
Examples of notable recent methylamphetamine seizures include a seizure in Melbourne in
October 2013, when a multi-agency taskforce seized more than 200 kilograms of
methylamphetamine in crystalline form concealed in truck tyres. The seizure had an estimated
street value of up to A$200 million, with two of the persons arrested as part of the investigation
employed as dock workers.4
A number of Asian countries, particularly China and India, have large legitimate chemical industries.
Organised crime groups are challenging the domestic controls over precursor chemicals in these
countries to divert or export chemicals for illicit drug production.
For example, in October 2013, 650 kilograms of pseudoephedrine concealed within vanilla powder
shipped from India by air freight was seized during the closure of Operation Diamondback, a joint
agency investigation. The estimated street value of this seizure was A$100 million. During the 18
month investigation, a total of 10 individuals (members of a Canadian transnational crime group)
were arrested and an estimated 1.9 tonnes of powder mix was seized.
Precursor chemicals are available for purchase on both legitimate and Darknet websites. It is likely
that organised crime will attempt to purchase precursor chemicals from internet sites due to the
ease of using this method, relatively low prices and their perceived ability to avoid detection.
Methylamphetamine and ice are both available online at competitive prices. A six month Silk Road
monitoring study compared the prices (per gram) for methylamphetamine and crystal
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methylamphetamine through domestic and international vendors to the 2012 (Australian) Ecstasy
and Related Drugs Reporting System listed prices (prices in bitcoin converted to Australian dollars)
and found the following:5
o Methylamphetamine:

Median international price A$19.

Median domestic price A$147

EDRS [street] A$300
o Crystal methylamphetamine:

Median international price A$125

Median domestic price A$574

EDRS [street] A$700
Committee Question 4: To what extent is methylamphetamine manufactured in clandestine
laboratories in Australia, and particularly in Victoria?
Clandestine laboratories, commonly referred to as ‘clan labs’, covertly manufacture illicit drugs
and/or their precursors and can range from crude, makeshift operations using simple processes, to
highly sophisticated operations using technically advanced equipment and facilities. In Australia
and internationally, amphetamine-type stimulants (ATS) are reported as the dominant illicit drug
manufactured in clandestine laboratories, with those manufacturing methylamphetamine
continuing to be the most common type of laboratory detected in Australia. A record 809
clandestine laboratories were detected in Australia in 2011–12. Of these, 552 (62 per cent) were
identified as manufacturing ATS (excluding MDMA), the majority of which were using the
hypophosphorous method of production (see Tables 1 and 2).
5
Van Buskirk, J., Roxburgh, A., Bruno, R., and Burns, L. (2013). Drugs and the Internet, Issue 1, August 2013. Sydney: National Drug
and Alcohol Research Centre.
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TABLE 1: Number of clandestine laboratory detections, by state and territory, 2002–03 to 2011–12
Year
NSW
Vic
Qld
SA
WA
Tas
NT
ACT
Total
2002–03
47
19
171
34
36
2
3
2
314
2003–04
61
20
189
48
33
1
6
0
358
2004–05
45
31
209
25
44
3
21
3
381
2005–06
55
47
161
50
58
5
12
2
390
2006–07
49
72
132
51
37
9
1
5
356
2007–08
51
76
121
69
30
2
1
6
356
2008–09
67
84
148
65
78
0
7
0
449
2009–10
82
113
297
71
118
1
12
0
694
2010–11
87
63
293
75
171
11
2
1
703
2011–12
90
99
379
58
160
15
7
1
809
TABLE 2: Method of ATS (excluding MDMA) production in clandestine laboratory detections, by state and
territory, 2011–12
State/
Territory
Hypophosphorous
(Iodine)
Redphosphorus
(Hydriotic)
Nazi/Birch
(Lithium/
Ammonia)
Phenyl-2Propanone
(P2P)
Other
NSW
62
0
2
2
9
75
Vic
39
7
2
9
1
58
Qld
201
38
0
2
0
241
SA
39
6
0
2
2
49
WA
0
6
149
0
1
156
Tas
6
0
4
1
0
11
NT
7
0
0
0
0
7
ACT
0
0
0
0
0
0
Total
354
57
157
16
13
597
a
b
Total
a. ‘Other’ includes the detection of other ATS (excluding MDMA) production methodologies.
b. Total may exceed the number of ATS (excluding MDMA) clandestine laboratory detections due to multiple methods of production being identified
at a single laboratory.
In 2011–12, Victoria reported the greatest percentage increase in clandestine laboratory detections
and the second highest number of detections for that jurisdiction in the last decade.
The number of clandestine laboratory detections is not indicative of production output, which is
calculated using a number of variables including size of reaction vessels, amount and type of
precursor chemicals used, the skill of people involved and the method of manufacture. Regardless
of their size, the residual contamination arising from illicit drug manufacture presents a serious risk
to human and environmental health. Residential areas remain the prominent location of
clandestine laboratory detections in Australia. In 2011–12, 70.6 per cent of detected clandestine
laboratories were located in residential areas, followed by vehicles (8.5 per cent) and public places
(7.8 per cent) (see Figure 1). In 2011, the Australian Government launched the Clandestine Drug
Laboratory Remediation Guidelines in recognition of the hazardous nature of clandestine
laboratories.
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FIGURE 1: Location of clandestine laboratory detections, 2011–12
Residential (70.6%)
Vehicle (8.5%)
Public place (7.8%)
Rural (3.1%)
Commercial/industrial (2.8%)
Other (7.2%)
Committee Question 5: What production methods are currently used in Victoria for
manufacturing methylamphetamine? To what extent have methods of production changed since
2005?
The methods of ATS (excluding MDMA) production in detected clandestine laboratories in 2011–12
appear in Table 2. Nationally, the hypophosphorous method of production remains the prominent
method of manufacture identified, with the hypophosphorous method the most common method
of manufacture identified in Victoria.
Over the past decade, the most common precursors used in the manufacture of
methylamphetamine have been pseudoephedrine and ephedrine. However, recent reporting
indicates that production methods have now diversified.
Organised crime groups maintain their intent and capability to source precursors in sufficient
volume to feed the large Australian methylamphetamine market. Australian-based and
transnational groups remain heavily involved in the illicit precursor chemical market. They have
responded to increasing restrictions on precursor chemicals by adopting alternative manufacture
processes utilising non-regulated chemicals, or methods utilising substances not traditionally
associated with drug manufacture.6
Increasing compliance with regulatory and voluntary controls on precursor substances by Australian
chemical, pharmaceutical and retail industries has resulted in a tightening of domestic sources of
chemicals. Because of this tightening, and possibly also due to lower prices and the ability to obtain
large volumes of precursor chemicals off-shore, there has been strong growth in illicit precursor
importations. Several large-scale importations have been detected, including 33 kilograms of
pseudoephedrine originating from Vietnam in June 2013, and 21 kilograms of ephedrine originating
from India in March 2013. This trend continues despite a concurrent rise in detections of imported
6
International Narcotics Control Board 2013, Precursors and chemicals frequently used in the illicit manufacture of narcotic drugs and
psychotropic substances, United Nations, Vienna.
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finished ATS product, with the weight of ATS seized by the AFP almost quadrupling from 2010–11 to
2011–12.7
Some Australian illicit drug producers are also acquiring materials consistent with several
methylamphetamine or precursor production methods not previously known to Australian law
enforcement. These illicit drug producers have been accessing chemicals or groups of chemicals
which are entirely unregulated and, in most instances, not recognised as being associated with illicit
drug production.
For example, there has been recent reporting of the use of the perfumery component helional in
the manufacture of 3,4-methylenedioxyamphetamine (MDA). This process provides an ideal
example of the evolutionary nature of illicit drug production and the corresponding challenges in
maintaining appropriate regulation over potential drug precursor chemicals (see Case Study 1).
Case Study 1: Purchase of Precursor Chemical Helional
ACC Project Alberta identified an individual purchasing, and receiving, multiple kilograms of helional from
a domestic supplier. The seller was identified to be the proprietor of a legitimate chemical supply
company. Helional is a precursor to MDA and MDMA. Purchases by individuals, particularly in large
quantities, are generally suspicious as helional can be used in clandestine laboratories to produce MDA. In
this particular case, there was evidence that the helional was intended for use in illicit drug production.
In many cases, these methods are developed to produce controlled precursor chemicals, however
in this instance, the helional method leads directly to the production of the drug. As is increasingly
common in emerging illicit drug manufacturing ‘recipes’, the process draws on common
unregulated domestic chemicals to act as chemical ‘tools’ to perform the necessary structural
changes.
As access to pseudoephedrine and ephedrine has become more difficult, there is evidence that
some illicit drug producers in Australia are reverting to classical phenyl-2-propanone (P2P) based
techniques for the production of methylamphetamine and are producing ephedrine in clandestine
laboratories. While there are a wide range of substances and methodologies available to the
producers of P2P, there is a requirement for a higher level of technical competence associated with
a number of the processes.
In one case, a range of chemicals was identified that indicated production of both ephedrine and
P2P, as well as some additional chemicals which could be used to facilitate the conversion of P2P to
methylamphetamine. Of note, this case provided clear evidence of offshore suppliers mislabelling
original containers to avoid the interdiction efforts of the Customs and Border Protection.
A number of processes for the production of ephedrine have been identified. The processes
generally involve the use of non-controlled pre-precursor chemicals to manufacture the precursor.
Some of the processes are described in legitimate scientific literature and are relatively simple and
inexpensive. All of the information regarding the chemicals and processing methods is readily
accessible to motivated individuals from particular underground press publications and also several
internet sites devoted to the dissemination of drug manufacturing techniques. These publications
and sites function as aggregation points for data extracted and collated from legitimate open
source scientific and industrial literature. While there are many methods available for producing
7
AFP, Annual Report 2011-12, AFP, Canberra.
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P2P from a variety of starting materials, the options available for viable ephedrine manufacture are
relatively few in number.
In addition, the Mexican method of producing methylamphetamine involves the use of
pseudoephedrine and P2P as its primary precursors. As P2P is regulated in Mexico, it is often
produced by drug manufacturers by synthesising phenyl acetic acid (PAA). Traces of PAA are often
found in analysis of methylamphetamine produced by this method and are a key marker for
identifying methylamphetamine produced using this method. There have been seizures at the
Australian border and domestically of methylamphetamine produced by this method— it is not
known whether this indicates that methylamphetamine is being directly imported from Mexico or
whether domestic crime groups are using a new production method for methylamphetamine which
does not rely on P2P but on the pre-precursor PAA.
Term of Reference 2: Examine supply and distribution of methylamphetamine and links to
organised crime organizations including outlaw motorcycle gangs.
There are a number of individuals and groups involved in the Australian methylamphetamine
market. In 2011–12, for those able to be categorised, the majority of clandestine laboratories
detected were addict-based, reflecting diverse domestic production and supply.8
No one criminal syndicate, type of crime group, or ethnicity-based group are dominant in the
methylamphetamine market in Victoria. Members of Outlaw Motorcycle Gangs (OMCGs), family
groups, ethnic groups and entrepreneurial individuals working alone or in partnership are
represented. The methylamphetamine market is sufficiently diverse and profitable to support a
large number of competing and sometimes collaborating suppliers, at different levels of
sophistication.
Committee Question 6: To what extent are OMCGs involved in the production and supply of
methylamphetamines, and particularly ‘ice’ in Victoria?
Members of a number of OMCGs have been linked to methylamphetamine importations,
manufacture and distribution, in Victoria and throughout Australia. This involvement extends from
Melbourne to rural areas of Victoria, where in some cases the OMCG members represent one of
the more organised local crime networks and hence have an ability to supply locally on a regular
basis. They also have the capability to leverage off their OMCG to establish broader criminal
associations (and hence sources of drugs and precursors) and to ensure that debts are repaid. The
OMCG members may be more ethnically homogenous with communities outside Melbourne and
this sometimes gives them a competitive advantage in terms of local supply.
Members of OMCG chapters in other states also supply methylamphetamine and precursors into
the Victorian market or are supplied from the Victorian market.
8
In 2011–12, jurisdictions were asked to distinguish detected clandestine laboratories into the following four categories, taken from
the United Nations Office on Drugs and Crime Annual Report Questionnaire that is used to inform the World Drug Report. Addictbased labs (kitchen labs) use basic equipment and simple procedures. Typically, those operating in such laboratories have a limited
or non-existent knowledge of chemistry and simply follow instructions. Usually, there are no significant stores of precursors and the
amount of drugs or other substances manufactured is for personal use. A typical manufacture cycle for amphetamine-type
stimulants would yield less than 50 grams of the substance.
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Committee Question 7: What is the nature of the involvement of organised crime in the
production and supply of methylamphetamines, and particularly ‘ice’ in Victoria?
Of the Victoria-based targets recorded on the NCTL as at 13 January 2014, most are recorded in
intelligence holdings as being involved in multiple aspects of the market, including in descending
order of involvement:





methylamphetamine distribution
methylamphetamine manufacture
methylamphetamine importation
precursor importation
precursor distribution.
Committee Question 8: What other (and which) organised crime groups, or others, are involved in
the production and supply of methylamphetamine, and particularly ‘ice’ in Victoria?
A range of criminal groups are involved in the importation, manufacture and trafficking of
methylamphetamine in Australia, as well as the importation of particular precursor chemicals.
These include, apart from Australian-based members of OMCGs, persons of Iranian, Middle Eastern,
Eastern European and West African background, individuals and groups of Asian extraction
(Vietnamese and Chinese in particular) and persons and groups from Canada, the US and Mexico.
It is now not unusual for persons of different ethnic or criminal backgrounds to collaborate at
different stages of the methylamphetamine supply chain, or to collaborate on an importation or
local supply. In some cases the collaboration lasts for only a small series of transactions, but in
other cases the relationship is more enduring.
Committee Question 9: Has the involvement of organised crime in the production and supply of
methylamphetamines, and particularly ‘ice’ in Victoria changed since 2005?
The Victorian methylamphetamine/ice market is more sophisticated across the board than it was in
2005, as is the national and transnational market. Australia-based organised crime groups now have
far greater access to high purity imported methylamphetamine, precursors and pre-precursors;
connections that permit the groups to engage effectively with methylamphetamine importing
networks from a number of continents and ready access via the internet and underground
literature to detailed information on alternative methylamphetamine and precursor production
processes. The crime groups are also more diverse, flexible and innovative and are better
connected across Australian jurisdictions.
Organised crime groups that in 2005 were in the heroin or cocaine markets are now focusing in part
or predominantly on the methylamphetamine/ice market. Groups are seeking to satisfy increasing
demand for ice as opposed to methylamphetamine in the form of pills or powder. New sources of
demand have been identified in particular segments of the population and rural areas of Victoria.
Clan labs are more prolific, regardless of their size and potential output. Although crystal
methylamphetamine is produced domestically, an increasing proportion of the market is being
supplied from imports.
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Term of Reference 3: Examine the nature, prevalence and culture of methylamphetamine
use in Victoria, particularly amongst young people, indigenous people and those who live
in rural areas.
The UNODC noted in September 2013 that although seizure data is well recorded, accurate demand
data is scarce and tends to be anecdotal in nature9. This problem is shared by Australian agencies.
There is conflicting data on the rate of methylamphetamine use in Australia. National drug use
monitoring surveys have identified increasing use and availability of methylamphetamine and
increases in users’ perceptions of the purity of the drug. However, another survey indicated that
the rate of recent use of methylamphetamine has decreased in the last two years, without
corresponding market changes which may account for this fall.10 Self-report data obtained from
drug users in relation to illicit stimulants in particular has limitations and tends to result in
underestimation of actual drug use. Border detection and seizure rates, precursor chemical
seizures, clandestine laboratory detections and street prices for illicit drugs suggest that
methylamphetamine use is growing. In the future, more objective assessments of
methylamphetamine use, such as assessments of waste water, may augment data obtained from
self-reporting and provide a more accurate estimate of national methylamphetamine use and that
of some other drugs.
Committee Question 10: To what extent is methylamphetamine, and particularly ‘ice’, used in
Victoria and, in particular, in rural or urban areas? How does this compare with other jurisdictions
in Australia?
According to the 2010 National Drug Strategy Household Survey (NDSHS)—a survey of drug use
within the general population which is undertaken every two to three years—7 per cent of the
Australian population aged 14 years or older reported using amphetamine/methylamphetamine at
least once in their lifetime. In the same survey, 2.1 per cent reported recent11
amphetamine/methylamphetamine use.
In a 2012 national study of regular injecting drug users, the proportion of respondents reporting
recent12 use of methylamphetamine increased, from 66 per cent in 2011 to 68 per cent in 2012.
Recent methylamphetamine users within this regular injecting drug user population reported using
methylamphetamine a median of 22 days in the 6 months preceding interview, the highest
reported since 2007. Early findings from the 2013 study indicate the proportion of respondents
reporting recent use of methylamphetamine decreased to 66 per cent; with the reported median
days of methylamphetamine use in the 6 months preceding interview increasing to 24 days (see
Figure 2).
9
UNODC, 2013, Global SMART Update Volume 10, Vienna.
Ecstasy and Related Drugs Reporting System (ERDS), October 2013, Drug Trends Bulletin, An overview of the 2013 Ecstasy and
Related Drugs Reporting System, University of NSW, Sydney.
11
In the NDSHS, ‘recent use’ refers to reported use in the 12 months preceding interview.
12
The term ‘recent use’ in the regular injecting drug user and regular ecstasy user studies refers to reported use in the 6 months
preceding interview.
10
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FIGURE 2: Proportion of a regular injecting drug user population reporting recent use of speed, base and
crystal/ice compared to median days of use of any form of methylamphetamine, 2004 to 2013 (Source:
National Drug and Alcohol Research Centre)
Speed
Base
Ice
100
180
90
160
80
140
70
120
60
100
50
80
40
60
30
20
40
10
20
0
Median days use (max = 180)
Recent use (%)
Median days use
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013a
a. Note: Reported figures for 2013 are preliminary.
In the same 2012 study, the proportion of respondents reporting methylamphetamine as their drug
of choice increased, from 20 per cent in 2011 to 21 per cent in 2012. Early findings from the 2013
study indicate this has increased to 23 per cent. For any form of methylamphetamine, injection
(65 per cent) was the most common method of administration in 2012, followed by smoking at
19 per cent and swallowing at 8 per cent.
In a 2012 national study of regular ecstasy users, the proportion of respondents reporting recent
use of one or more forms of methylamphetamine increased, from 60 per cent in 2011 to
61 per cent in 2012, the highest percentage reported since 2008. Powder (speed) remains the most
common form of methylamphetamine used, followed by crystal and base. Recent users of any form
of methylamphetamine within this user population reported using methylamphetamine a median
of 6 days in the 6 months preceding interview, which has remained stable since 2011. In 2012,
among recent speed users, snorting (73%) and swallowing (60%) were the most common reported
routes of administration. Among recent base users, swallowing was the most commonly nominated
route of administration (76%), with smoking the most common route of administration for
ice/crystal users (88%). Early findings from the 2013 study indicate the proportion of respondents
reporting recent use of any form of methylamphetamine decreased to 50 per cent; with the
reported median days of methylamphetamine use in the 6 months preceding interview decreasing
to 4 days (see Figure 3).
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FIGURE 3: Proportion of a regular ecstasy user population reporting the recent use of speed, base and
crystal/ice compared to median days of use of any form of methylamphetamine, 2004 to 2013 (Source:
National Drug and Alcohol Research Centre)
Speed
Base
Ice
100
180
90
160
80
140
70
120
60
100
50
80
40
60
30
20
40
10
20
0
Median days use (max = 180)
Recent use (%)
Median days use
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013a
a. Note: Reported figures for 2013 are preliminary.
According to a report focused on trends in alcohol and drug related ambulance attendances in
Victoria in 2011–12, large increases were noted in crystal methylamphetamine attendances.13 In
total there were 671 recorded attendances related to crystal methylamphetamine in 2011–12, of
which 592 were reported in metropolitan Melbourne and 78 in regional Victoria.14 In metropolitan
Melbourne, the number of crystal methylamphetamine related attendances increased by 109.9 per
cent, from 282 in 2010–11 to 592 in 2011–12. While the number of related attendances remains
lower that that of other drugs—such as alcohol, benzodiazepines and heroin—crystal
methylamphetamine recorded the highest percentage increase in attendances of any drug related
attendance. Based on aggregations of all related attendance times, the peak days in both
metropolitan Melbourne and regional Victoria in 2011–12 were Saturday and Sunday, with the peak
times between 6pm and 2am in metropolitan Melbourne and between 8pm and midnight in
regional Victoria.
13
Attendances assessed as being related to crystal methylamphetamine is based on ambulance paramedic mention of the
involvement, established through patient self-report or from information provided by someone else at the scene.
14
The total exceeds the sum of metropolitan and regional cases as attendances may not contain location information.
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SEIZURES
The number and weight of national ATS15 seizures increased in 2011–12. While the weight of
national seizures remains lower than that seized earlier in the decade, since 2009–10, both the
number and weight of ATS seizures have continued to increase, with the number of seizures this
reporting period the highest reported in the last decade (see Figure 4).
FIGURE 4: National ATS seizures, by number and weight, 2002–03 to 2011–12
Weight
Number
6000
16000
14000
5000
10000
3000
8000
Number
Weight (kg)
12000
4000
6000
2000
4000
1000
2000
2011–12
2010–11
2009–10
2008–09
2007–08
2006–07
2005–06
2004–05
2003–04
0
2002–03
0
Figure 5
and 6 reflect ATS seizures over the last decade specific to Victoria.
15
The term amphetamine-type stimulants (ATS) encompass drugs included under both the amphetamine and phenethylamines
groupings.
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FIGURE 5: ATS seizures in Victoria16, by number and weight, 2002–03 to 2011–12 (including record MDMA
seizure in 2006–07)
Weight
Number
5000
1600
4500
1400
1200
3500
3000
1000
2500
800
2000
600
1500
Number
Weight (kg)
4000
400
1000
200
500
2011–12
2010–11
2009–10
2008–09
2007–08
2006–07
2005–06
2004–05
2003–04
0
2002–03
0
FIGURE 6: ATS seizures in Victoria17, by number and weight, 2002–03 to 2011–12 (excluding the record
MDMA seizure in 2006–07)
Number
1600
1200
1400
1200
1000
1000
800
800
600
600
400
400
200
200
17
2011–12
2010–11
2009–10
2008–09
2007–08
2006–07
2005–06
2004–05
2003–04
0
2002–03
0
16
Number
Weight (kg)
Weight
1400
ATS seizures reflected in this figure incorporate both Victoria Police and AFP seizures that occurred in Victoria.
ATS seizures reflected in this figure incorporate both Victoria Police and AFP seizures that occurred in Victoria.
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ARRESTS
In 2011–12, the number of national ATS arrests increased for the first time since 2008–09 and is the
highest reported in the last decade (see Figure 7).
FIGURE 7: Number of national ATS arrests18, 2002–03 to 2011–1219
Total
Consumer
Provider
18000
16000
14000
Number
12000
10000
8000
6000
4000
2000
2011–12
2010–11
2009–10
2008–09
2007–08
2006–07
2005–06
2004–05
2003–04
2002–03
0
Figure 8 reflects ATS arrests over the last decade specific to Victoria.
FIGURE 8: Number of ATS arrests in Victoria, 2002–03 to 2011–1220
Total
Consumer
Provider
5000
4500
4000
Number
3500
3000
2500
2000
1500
1000
500
2011–12
2010–11
2009–10
2008–09
2007–08
2006–07
2005–06
2004–05
2003–04
2002–03
0
18
ATS arrests reflected in this figure incorporate both Victoria Police and AFP arrests that occurred in Victoria.
The total includes those offenders for whom consumer/provider status was not provided. As such, the total may exceed the sum of
consumer and provider arrests.
20
The total includes those offenders for whom consumer/provider status was not provided. As such, the total may exceed the sum of
consumer and provider arrests.
19
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PURITY
Figure 9 illustrates the annual median purity of analysed methylamphetamine samples since
2002–03. Over the last decade, the median purity of methylamphetamine has ranged from 4.4 per
cent to 60 per cent. With the exception of Tasmania, all jurisdictions reported an increase in the
purity of methylamphetamine samples analysed in 2011–12. Victoria reported the highest annual
median purity in the last decade, increasing from 19.6 per cent in 2010–11 to 60 per cent in 2011–
12.
FIGURE 9: Annual median purity of methylamphetamine samples, 2002–03 to 2011–12
NSW
VIC
QLD
SA
WA
TAS
ACT
100
90
80
Purity (%)
70
60
50
40
30
20
10
2011–12
2010–11
2009–10
2008–09
2007–08
2006–07
2005–06
2004–05
2003–04
2002–03
0
Figure 10 illustrates the median purity of analysed methylamphetamine samples on a quarterly
basis in 2011–12. During this reporting period, the median purity of methylamphetamine samples
ranged from 6.3 per cent in Tasmania to 77.6 per cent in Victoria. The greatest fluctuation in
quarterly median purity was in Victoria, ranging from a low of 47 per cent in the fourth quarter of
2011 to a high of 77.6 per cent in the second quarter of 2012.
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FIGURE 10: Quarterly median purity of methylamphetamine samples, 2011–12
NSW
VIC
QLD
SA
WA
TAS
100
90
80
Purity (%)
70
60
50
40
30
20
10
q2 2012
q1 2012
q4 2011
q3 2011
0
CONCLUSION
Collectively the above statistics paint a relatively concerning picture of the methylamphetamine
market in Victoria, and indeed nationally. The ACC assesses that the figures are indicative of an
expanding rather than contracting market.
Term of Reference 4: Examine the links between methylamphetamine use and crime, in
particular crimes against the person.
A range of criminal activity has been conclusively linked to methylamphetamine use and
manufacture.
Property Offences
For example, findings from both international and national studies have indicated an increasing
association between methylamphetamine use and property offences. Research studies indicate
that property offences are more common among regular or heavy users of methylamphetamine. 21
Results from a New South Wales Bureau of Crime Statistics research study using regression
modelling revealed that heavy users of amphetamine22—who reported at least 16 days of use in
the month prior to arrest—had 53 per cent more property charges recorded at arrest compared to
detainees who were less frequent users and non-users.23 Higher rates of property offences among
methylamphetamine users were also associated with younger individuals, being unemployed and
having reported illicit use of benzodiazepines in the 30 days prior to arrest. 24
21
Crime and Misconduct Commission 2005, ‘Property Crime in Queensland: A strategic assessment’, Crime Bulletin No. 7, Brisbane:
Crime and Misconduct Commission; McKetin, R, McLaren, J, & Kelly, E 2005, ‘The Sydney methamphetamine market: Patterns of
supply, use, personal harms and social consequences’, National Drug Law Enforcement Research Fund Monograph Series (No. 13),
Adelaide: Australasian Centre for Policing Research; Gizzi, M & Gerkin, P 2010, ‘Methamphetamine use and Criminal Behaviour’,
International Journal of Offender Therapy and Comparative Criminology, vol. 54(6), pp. 915-936.
22
The term ‘amphetamine’ in this study included both amphetamine and methylamphetamine.
23
Bradford, D, & Payne, J, 2012, ‘Illicit Drug Use and Property Offending among Police Detainees’, NSW Bureau of Crime Statistics
and Research, Sydney.
24
Ibid.
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There also appears to be a correlation between the amount of money spent on
methylamphetamine and earnings from property offences and drug dealing in the 30 days prior to
arrest. Among a sample of New Zealand Police detainees, those who reported having spent $1,000
or more on methylamphetamine per month obtained, on average, $2,367 more in proceeds from
property crime and $2,679 more from drug dealing per month than those detainees who had not
spent any money on methylamphetamines.25
Driving Offences
Multiple instances are being recorded by Victoria Police of people being detected driving under the
influence of methylamphetamine, including truck drivers. This activity has obvious implications for
public safety and, in the case of long-distance truck drivers, places them at risk of being pressured
or induced by organised crime groups to transport illicit drugs interstate.
Corruption and Infiltration
As with all illicit drug markets, organised crime groups in the methylamphetamine market seek to
develop corrupt relationships and to use ‘trusted insiders’ to facilitate their criminal activity. Some
networks have infiltrated key sectors, industries and professions, including the waterfront, air
transport, and the financial sector.
Money Laundering and Related Crime
As noted previously, the supply side of the methylamphetamine market generates significant cash
profits, which must be laundered in Australia and/or, increasingly, offshore. Task Force Eligo was
established in 2012 as an ACC-led multi-agency (including Victoria Police) special investigation into
the use of alternative remittance and informal value transfer systems by serious and organised
crime. It has seized more than $580 million worth of drugs and assets, including a record $26
million in cash, and is being heralded as one of the most successful money laundering investigations
in Australia.
Illicit drugs and precursors with a combined estimated street value of more than $530 million have
been seized by Taskforce Eligo. The majority of these drugs have been crystal methylamphetamine,
methylamphetamine powder and precursor chemicals commonly used in methylamphetamine
manufacture. Project Eligo has caused the closing down of three commercial amphetamine
laboratories, including one of the largest and most sophisticated clandestine laboratory ever
discovered by Victoria Police in Sunshine, Victoria (October 2012). It is likely the majority of the
funds seized by Taskforce Eligo are proceeds of the sale of illicit drugs, specifically
methylamphetamine in various forms.
Sophisticated and systematic money laundering of this type also involves a range of other criminal
activity, including identity crime.
25
Wilkins,C & Sweetsur,P 2011a, ‘The association between spending on methamphetamine and cannabis for personal use and
earnings from acquisitive crime among police detainees in New Zealand’, Addiction, Volume 106, pp. 789–797.
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Firearms Trafficking
ACC intelligence indicates that a number of networks represented in the methylamphetamine
market are also involved in firearms trafficking, with some of these groups suspected of being
involved in the ongoing supply of firearms and drugs in a number of states.
Committee Question 11: How much violent crime in Australia, and particularly Victoria, is linked
with methylamphetamine use, particularly ‘ice’?
Crystal methylamphetamine in particular has been found to contribute to a higher incidence of
psychosis among users than other forms of ATS or other drug types. Users of crystal
methylamphetamine also tend to demonstrate more aggression and violence than users of other
forms of methylamphetamine.
One of the most well publicised psychological manifestations of regular methylamphetamine use is
aggression, sometimes accompanied by violence. A 2006 St Vincent’s Hospital (SVH) study of the
characteristics of methylamphetamine-related and other non-methylamphetamine-related
presentations to the SVH Emergency Department (ED) found that methylamphetamine users were
more aggressive, violent and dangerous than persons not under the influence of
methylamphetamine. This poses a safety risk to ED staff and other personnel.26 Extremely agitated
and aggressive patients accounted for 18 per cent and violent and self-destructive patients
accounted for 3 per cent of methylamphetamine-related presentations. These figures were much
higher compared with the non-methylamphetamine-related presentations, which recorded
presentation rates of 2 per cent agitated and aggressive patients and a figure of nil for recorded
violent and self-destructive patients.27 The study also found that methylamphetamine users were
more likely to have a history of mental health problems, with 39 per cent of methylamphetaminerelated presentations requiring scheduling under the Mental Health Act 1990 (NSW), compared
with 19 per cent of other non methylamphetamine-related presentations.28
A number of organised crime groups in the methylamphetamine market have been linked to
murders and violent assaults to protect or increase their market share, or for reasons unrelated to
their drug manufacture and supply. In the latter case, the motivations have included personal
revenge, and on occasions the only link to the methylamphetamine market was that this was the
context in which the criminals first became associated. Extortion is another potentially violent
activity in which groups represented in the methylamphetamine market have regularly come to
notice.
Violence in social and public entertainment settings has also been linked to the concurrent use of
ice, steroids and alcohol by members of the public or members of crime groups responsible for
distribution of the substances.
26
Bunting, PJ, Fulde, GWO & Forster, SL 2007, ‘Comparison of crystalline methamphetamine (‘ice’) users and other patients with
toxicology–related problems presenting to a hospital emergency department’, Medical Journal of Australia, vol. 187(10), pp. 564566, viewed 14 May 2013, <https://www.mja.com.au/journal/2007/187/10 /comparison-crystalline- methamphetamine-ice-usersand-other-patients-toxicology>.
27
Ibid.
28
Ibid.
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Societal Effects
Several long term societal effects were identified in a Commonwealth Department of Health project
on the harms associated with methylamphetamine use. Identified long-term impacts included:

alienation from family and/or friends

lack of money, potentially leading to poverty

loss of employment and becoming unemployable

resorting to crime to pay for drug use

inflicting violence on others including sexual or physical assault

stigmatisation as an addict

incarceration in prison or treatment centre.29
Impact on families and relationships
A 2011 New Zealand study found a range of negative impacts on family and relationships stemming
from frequent methylamphetamine use. Many frequent methylamphetamine users reported
‘arguing with others’ (73 per cent), ‘doing something under the influence of drugs which they later
regretted’ (66 per cent), ‘losing their tempers’ (65 per cent), ‘upsetting a family relationship’
(61 per cent) and ‘having unprotected sex’ (58 per cent) as a consequence of their
methylamphetamine use.30
A study of ATS-using parents found a range of negative behaviours and/or actions impacting family
life:

feelings of anger and apathy towards their children

difficulty keeping drug use away from their children (sometimes resulting in removing
children from their care to enable drug use)

exposure to domestic violence.31
These factors may contribute to children feeling insecure and not being able to rely on their parents
for their basic needs such as food and clothing. Furthermore, children may increasingly feel
detached from their parents and assume parental responsibilities, including looking after younger
siblings and/or their parents during periods of active drug use.32
29
Department of Health and Ageing (DoHA) 2009, ‘Patterns of use and harms associated with specific populations of
methamphetamine users in Australia‒exploratory research’, viewed 27 February 2013,
<http://www.health.gov.au/internet/publications/publishing.nsf/Content/phd-npi-methamphetamine-report-feb09-l~risks>.
30
Wilkins, C, Sweetsur, P, Smart, B, Warne, C & Jawalkar, S 2012, Recent trends in illegal drug use in New Zealand: Findings from the
2006, 2007, 2008, 2009, 2010 and 2011 Illicit Drug Monitoring System (IDMS), SHORE and Whariki Research Centre, Massey
University, Auckland.
31
Brown, JA and Hohman, M 2006, ‘The impact of methamphetamine use on parenting’, in Strasser, SLA and Fewell, CH (Eds), Impact
of substance abuse on children and families: research and practice implications, Haworth Press, New York, pp. 63-68.
32
Ross, P 2012, ‘Effects of amphetamine-type stimulant use and problems for the individual, family and community’, in Allsop, S and
Lee, N 2012, Perspectives on Amphetamine-Type Stimulants, IP Communications, Sydney.
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Exploitation of vulnerable groups
Serious and organised crime groups attempt to distance themselves from their illicit activities by
targeting vulnerable individuals and groups to obtain the precursor chemicals used in
methylamphetamine manufacture. Serious and organised crime groups have targeted overseas
students—primarily from China—to import precursor chemicals such as pseudoephedrine or illicit
pharmaceuticals containing precursor chemicals into Australia.33 Individuals with a gambling or drug
debt also remain vulnerable to serious and organised crime groups seeking to import or
domestically divert methylamphetamine and other illicit drugs.34
Impacts on Indigenous communities
Indigenous communities are socially disadvantaged across a broad spectrum of areas including
employment, housing, health and education. Illicit drug use continues to be of concern in
Indigenous communities throughout Australia.35 The remote and isolated nature of some
Indigenous communities contributes to drug related harms due to the lack of culturally sensitive
drug rehabilitation programs and the strong kinship ties which prevent families from seeking help
for their affected family member. The use of alcohol—often with other illicit drugs and/or the
misuse of legal substances—continues to contribute to child abuse, domestic and community
violence, criminality, poor health outcomes, suicide, death and financial loss.36 According to
available data on self-reported use of illicit substances, methylamphetamine37 is the third most
common illicit substance used in Indigenous communities, with 5 per cent of a self-report cohort
indicating amphetamines/speed in the 12 months prior to survey.38
The Drug and Alcohol units of several Aboriginal Medical Services and Mental Health Services across
Australia identified the adverse effects of methylamphetamine use on Indigenous families and
communities. One treatment service indicated that Indigenous families felt very guilty about
contacting authorities to find help for family members dependent on methylamphetamine. 39
Indigenous families were generally described as being very tolerant people, but found it very
difficult to cope with the aggressive behaviour of users because there were often multiple users in
the one family.40 Most Indigenous users of methylamphetamine were not accessing services due to
the stigma or sensitivity attached to being labelled a ‘dependent user’, having a mental illness or
concerns regarding anonymity.41 As a result, Indigenous users may be more likely to access
mainstream services rather than Indigenous services. Indigenous users also reported being
33
Australian Customs and Border Protection Service (ACBPS) 2012, Caution urged when collecting packages for others, Media
Release, viewed 2 May 2013, <http://www.customs.gov.au/site/mediaRelease220120222.asp>.
34
The Star Online 2013, ‘Malaysian pilot in Australia gets six years’ jail for smuggling drugs’, The Star, 23 February 2013, viewed 8 July
2013, http://www.thestar.com.my/News/Nation/2013/02/23/Malaysian-pilot-in-Australia-gets-six-years-jail-for-smugglingdrugs.aspx; Eliot, L 2013, Mr Bigs prey on addicts, The West Australian, 9 July 2013, viewed 9 July 2013,
<http://au.news.yahoo.com/thewest/a/-/breaking/17922827/mr-bigs-prey-on-addicts/>.
35
Australian Indigenous Health Info Net 2013, ‘Health risk factors: Factors contributing to Indigenous health: Illicit drug use’, viewed
29 Oct 2013, <http://www.healthinfonet.ecu.edu.au/health-facts/overviews/health-risk-factors>.
36
Australian Crime Commission (ACC) 2012, Understanding Crime Affecting Indigenous Communities 2012, ACC, Canberra, p. 29.
37
The powder form of methylamphetamine is commonly referred to as speed.
38
Australian Institute of Health and Welfare (AIHW) 2011, Substance use among Aboriginal and Torres Strait Islander people, AIHW,
Canberra, viewed 20 May 2013, <http://www.aihw.gov.au/publication-detail/?id=10737418268>.
39
Department of Health and Ageing (DoHA) 2009, ‘Patterns of use and harms associated with specific populations of
methamphetamine users in Australia‒exploratory research’, viewed 27 February 2013,
<http://www.health.gov.au/internet/publications/publishing.nsf/Content/phd-npi-methamphetamine-report-feb09-l~risks>.
40
Ibid.
41
Ibid.
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excluded from their families or peer groups because they had stolen from their relatives and/or
friends and had been dishonest about it.42
Of note, the prevalence of methylamphetamine use has resulted in greater concerns about the
safety of families and communities. Some of the adverse consequences stemming from drug use
and dependency voiced in many Indigenous communities included domestic violence, tensions
from sourcing money for substance use, declining participation in community life, child neglect and
sexual exploitation of young people.43 One treatment service believed that the distribution of
Centrelink payments over a fortnight in Indigenous communities exacerbated the use of
methylamphetamine. The implication is that there was always someone with money on any day of
the week to buy drugs and therefore communities did not have recovery time between periods of
aggressive behaviour stemming from drug use.44
Term of Reference 5: Examine the short and long term consequences of
methylamphetamine use.
Health
The health related harms caused by methylamphetamine use include physical, emotional and
psychological harms. Crystal methylamphetamine use has long been portrayed in the media as
being associated with a higher prevalence of psychosis. The findings of a recent Australian study
support this link, as discussed in the Psychological and Emotional Impact section below. Children
are particularly vulnerable as a consequence of exposure to clandestine laboratories as their
nervous and immune systems are developing.
Children have faster metabolic rates and weaker immune systems, and their organs and central
nervous systems are still developing. Children eat, drink and breathe more per kilogram of body
weight compared to adults. The behaviour of young children—such as crawling and frequent handto-mouth contact—exposes them to a higher risk of accidental ingestion, inhalation or skin
exposure to chemicals in clandestine laboratories.45 Case Study 2 illustrates how forensic analysis
has been able to accurately establish a link between children exposed to methylamphetamine and
the location of clandestine laboratories.46
42
Ibid.
Putt, J & Delahunty, B 2006, ‘Illicit drug use in rural and remote Indigenous communities’, Trends & Issues in Crime and Criminal
Justice, No. 322, Australian Institute of Criminology, Canberra, viewed 22 March 2013,
<http://aic.gov.au/documents/4/0/0/%7B40035082-E504-4DF4-85A8-62BD95B80901%7Dtandi322.pdf>.
44
Department of Health and Ageing (DoHA) 2009, ‘Patterns of use and harms associated with specific populations of
methamphetamine users in Australia‒exploratory research’, viewed 27 February 2013,
<http://www.health.gov.au/internet/publications/publishing.nsf/Content/phd-npi-methamphetamine-report-feb09-l~indigenous >.
45
Swetlow, K 2003, ‘Children at Clandestine Methamphetamine Labs: Helping Meth’s Youngest Victims’, Office for Victims of Crime
Bulletin, US Department of Justice, viewed 2 April 2013, <http://www.popcenter.org/problems/meth_labs/PDFs/Swetlow_2003.pdf>.
46
Ibid.
43
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Case Study 2: Methylamphetamine in hair samples of children
A study conducted on hair samples of children removed from New Zealand clandestine laboratories
manufacturing methylamphetamine during 2008‒10 found that 73 per cent of the 52 cases analysed tested
positive for methylamphetamine. The low level of evidence of external contamination found during the
testing phase suggested that the children were exposed to methylamphetamine and had incorporated it
into their hair through the blood stream.47 The levels detected appear to be very similar to those detected
in the hair of adult users from several studies.48 (U)
Health-related harms exert great pressure on health care systems in terms of the number of
medical staff required, time spent, the availability of beds in hospital emergency departments and
social infrastructure. Amphetamines49 accounted for $3 million of the estimated $25.6 million spent
on drug treatment services, third only to opioids and cannabis among illicit drugs.
Methylamphetamine use has numerous physical health-related harms. Short-term effects of use
include sweating, headaches, anxiety and paranoia. High doses can result in blurred vision,
hallucinations, tremors and stroke. Long-term use can result in memory loss, aggression, increased
risk of heart failure and stroke.50 Users may take other drugs to enhance the effects of
methylamphetamine, or to counteract the undesired side effects. This can place increased pressure
on a user’s body, including heart rate and respiration.51
Other psychological and emotional harms associated with regular methylamphetamine use include
paranoia, anxiety and depression.52 In 2011, a New Zealand Massey University study found that
39 per cent of frequent methylamphetamine users reported having previously suffered from a
mental illness such as anxiety, depression, psychotic symptoms—such as paranoia and
hallucinations—and schizophrenia in their lifetime.53 Frequently reported emotional problems also
include decreased motivation or ability to maintain usual activities and decreased concentration or
memory.
Case Study 3 illustrates the main findings from an Australian study which concluded that crystal
methylamphetamine users were substantially more likely to suffer from psychosis when using the
drug than when they were abstinent.
47
Bassindale, T 2012, ‘Quantitative analysis of methamphetamine in hair of children removed from clandestine laboratories—
Evidence of passive exposure?’, Forensic Science International, vol. 219(1), pp. 179-182.
48
Ibid.
49
Amphetamines include amphetamine, methylamphetamine but excludes MDMA.
50
Australian Drug Foundation (ADF) 2012, Drug Information–Amphetamines, ADF, Melbourne, viewed 8 March 2013,
<http://www.druginfo.adf.org.au/drug-facts/amphetamines>.
51
Australian Drug Foundation (ADF) 2008, ‘Methamphetamine and your body’, Drug Info, no.7, ADF, Melbourne, viewed
8 March 2013, <http://www.druginfo.adf.org.au/attachments/192_FS_7.1_effects.pdf>; European Monitoring Centre for Drugs and
Drug Addiction (EMCDDA) 2011, Drug Profiles—Methylenedioxymethamphetamine (MDMA or ‘Ecstasy’), EMCDDA, Lisbon, viewed 8
March 2013, <http://www.emcdda.europa.eu/publications/drug-profiles/mdma>.
52
Australian Drug Foundation (ADF) 2012, Drug Information–Drug Facts–Amphetamines, ADF, Melbourne, viewed 21 February 2013,
<http://www.druginfo.adf.org.au/drug-facts/amphetamines>.
53
Wilkins, C, Sweetsur, P, Smart, B, Warne, C & Jawalkar, S 2012, Recent trends in illegal drug use in New Zealand: Findings from the
2006, 2007, 2008, 2009, 2010 and 2011 Illicit Drug Monitoring System (IDMS), SHORE and Whariki Research Centre, Massey
University, Auckland. To be eligible to be interviewed for the study, respondents had to have used a drug type at least once a month
in the past six months. The study did not indicate if the respondents’ mental illness existed before using methylamphetamine.
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Case Study 3: Methylamphetamine and psychosis
Many studies have found a correlation between methylamphetamine use and psychosis. A recent Australian
study concluded that users of crystal methylamphetamine are five times more likely to suffer psychotic
symptoms while taking the drug than when they were abstinent.54 The research studied 278
methylamphetamine users from Sydney and Brisbane between 2006 and 2010 and excluded anyone with
existing psychotic tendencies. The incidence of psychosis increased sharply from 7 per cent to 48 per cent as
a consequence of the quantity of methylamphetamine used by the subjects. The rate of psychosis reported
by those who also reported frequent use of cannabis and/or alcohol ranged between 61 per cent and
69 per cent.55
In a 2012 study of regular injecting drug users, 25 per cent of respondents reported (any form of)
methylamphetamine as the drug injected most often in the last month.56 Injection carries the risk of
blood-borne viruses such as Hepatitis B and HIV, which increases as a consequence of sharing
needles.
Environmental considerations
Operators of clandestine laboratories manufacturing methylamphetamine often have little concern
for the environment or public safety. It is estimated that a clandestine laboratory manufacturing
methylamphetamine generates up to 10 kilograms of hazardous and toxic waste for each kilogram
of pure methylamphetamine produced.57 It is not possible to calculate methylamphetamine output
from the number of clandestine laboratories detected in Australia due to the wide range of
variables including the size of reaction vessels, the amount and type of precursor chemicals used,
the skill of people involved and the method of manufacture. 58 However, regardless of the
clandestine laboratory’s size, toxic chemicals and residues have been found dumped into drains,
rivers, public parks, on roadsides and in sewerage systems, posing immediate and long-term
environmental health risks.59
The chemicals and equipment used in clandestine laboratories manufacturing methylamphetamine
and the toxic gases produced are extremely dangerous and pose severe health risks, not only to the
occupants of the premises but also to local residents and emergency personnel. The greatest
immediate risks are chemical burns and respiratory damage for persons exposed to the release of
reagants60 or the by-products from chemical fires and explosions at clandestine laboratory sites.
54
McKetin, R, Lubman D, Baker, A, Dawe, S, Ali, R 2013, ‘Dose-Related Psychotic Symptoms in Chronic Methamphetamine Users
Evidence from a Prospective Longitudinal Study’, JAMA Psychiatry. vol. 70(3), pp. 319‒323.
55
Ibid.
56
Stafford, J & Burns, L 2012, ‘Key Findings from the 2012 Illicit Drug Reporting System (IDRS): a survey of people who inject drugs‘,
IDRS Drug Trends Bulletin, October 2012, National Drug and Alcohol Research Centre, University of New South Wales, Sydney,
viewed 8 March 2013,
<http://ndarc.med.unsw.edu.au/sites/ndarc.cms.med.unsw.edu.au/files/ndarc/resources/IDRSOctober2012.pdf>
57
Australian Crime Commission (ACC) 2012, Clandestine Laboratories Fact Sheet, ACC, Canberra, viewed 8 March 2013,
<http://www.crimecommission.gov.au/publications/crime-profile-series-fact-sheet/clandestine-laboratories-0>.
58
Australian Crime Commission (ACC) 2013, Illicit Drug Data Report 2011‒12, ACC, Canberra.
59
Ibid.
60
Reagants are substances used to cause a chemical reaction that modifies a precursor’s molecular structure. For example, when
hydriodic acid and red phosphorous are mixed with the precursors ephedrine or pseudoephedrine, the resulting compound is
methylamphetamine.
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Illicit production of drugs can result in various environmental harms including soil, air, and
groundwater pollution. The primary environmental concern from drainage of these toxic chemicals
and residues, including volatile organic chemicals used in the production of methylamphetamine,
into the soil, waterways and sewerage systems is groundwater contamination.61 An additional
environmental health risk is vapour intrusion, which involves vapour gas from ground water plumes
infiltrating and accumulating in nearby buildings at dangerous levels.62 Poisonous fumes produced
during the illicit manufacturing process permeate the fittings and structure of houses and buildings,
often making them uninhabitable. This would adversely impact on rental return for landlords, and
may also compromise the safety and viability of the public housing sector.
Toxic chemicals which leak into the environment may persist long after drug manufacturing
activities have ceased. Examples of this are in dwellings or buildings where walls and floors are
damaged and soil contamination has occurred.63 The San Diego Health Department has reported
chemical fires erupting from sites where red phosphorus—a by-product of methylamphetamine
manufacture—had been dumped a decade prior.64 Chemical disposal into household drains may
result in volatile chemical reactions and stockpiling of toxic substances far from the clandestine
laboratory site.65
Stability in the labour market
Methylamphetamine use has a number of negative work related impacts. Compared to employed
non-drug users and users of other illicit drugs, methylamphetamine users were more likely to be
absent from work due to any injury or illness and more likely than users of other illicit drugs to be
absent due to their illicit drug use.66 When under the influence of methylamphetamine, workers
were more likely to be aggressive and to verbally or physically abuse someone and the risk of
serious injury is higher when drivers or operators of heavy machinery are influenced by
methylamphetamine. 67 This range of anti-social and risky behaviour may result in workplace
violence, harassment and bullying which negatively affects morale. A 2008 study examining the
impacts of methylamphetamine use among Australian workers found that 4 per cent of the
14,841 respondents in paid employment reported using methylamphetamine in the 12 months
prior to the survey, compared to 2.2 per cent of those not in the paid workforce.68 Among
respondents reporting methylamphetamine use, 13.4 per cent reported absenteeism due to illicit
drug use compared with 2.1 per cent of users of other illicit drugs, and 56.8 per cent of
methylamphetamine users reported absenteeism due to any illness or injury in the three months
prior to the survey compared with 47.1 per cent of users of other illicit drugs.69
61
Minnesota Pollution Control Agency 2006, Meth Production in Minnesota Outdoor Contamination due to Meth Lab Waste Disposal:
Assessment and Cleanup, viewed 16 May 2013, <http://www.pca.state.mn.us/index.php/view-document.html?gid=2828>.
62
Ibid.
63
Caldicott, DG, Pigou, PE, Beattie, R and Edwards, JW 2005, ‘Clandestine drug laboratories in Australia and the potential for harm’,
Australian and New Zealand Journal of Public Health, vol. 29(2), pp. 155–162.
64
McCrea, BA and Kolbye, KF 1995, Hazards of D-Methamphetamine Production: Baseline Assessment, U.S. Department of Justice,
National Drug Intelligence Center, NDIC Pub. No. 95–C0109-002, NCJRS, NCJ 164382, Washington DC.
65
Ibid.
66
Roche, AM, Pidd, K, Bywood, P & Freeman, T, 2008, ‘Methamphetamine use among Australian workers and its implications for
prevention’, Drug and Alcohol Review, May, vol. 27, pp. 334–341.
67
Ibid.
68
The study made a secondary analysis of the respondents from the 2004 National Drug Strategy Household Survey (NDSHS).
69
Roche, AM, Pidd, K, Bywood, P & Freeman, T, 2008, ‘Methamphetamine use among Australian workers and its implications for
prevention’, Drug and Alcohol Review, May, vol. 27, pp. 334–341.
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The National Centre for Education and Training on Addiction reports that, 3.9 per cent of the
14,850 Australian workers surveyed reported methylamphetamine use in the 12 months prior to
survey.70 The hospitality industry recorded the highest proportion of workers aged 14 years and
over using amphetamines71 (9.3 per cent), followed by those in the transport industry
(5.4 per cent), construction industry (5.2 per cent) and agriculture industry (4.9 per cent).72
An often overlooked systemic harm is the vulnerability of staff employed in chemical supply
companies. Staff members may become vulnerable to exploitation by serious and organised crime
groups due to changes in their personal circumstances and be coerced into providing information
or diverting precursor chemicals for illicit drug manufacture.
Term of Reference 6: Examine the relationship of methylamphetamine use to other forms
of illicit and licit substances.
The relationship between methylamphetamine and a wide range of precursor and pre-precursor
chemicals has previously been discussed. Many of these chemicals have legitimate uses as
industrial chemicals or pharmaceuticals, so challenges exist in identifying and controlling their
diversion. Initiatives designed to prevent illicit drug manufacture often impact on industry and
some times the general public and it is therefore important that a balance in struck between the
interests of all affected parties.
Methylamphetamine users are often poly-drug users, so there are links between the use of
methylamphetamine and other drugs including (for different reasons) cocaine, heroin, cannabis and
steroids and the non-medical use of pharmaceuticals including benzodiazepines and morphine.
Methylamphetamine is also regularly found in pills sold as MDMA when there is a shortage of
genuine MDMA.
There is also an illicit market for equipment, apparatus and utensils that facilitate the manufacture
and use of ice—including so called ‘ice pipes’, laboratory equipment and heating, cooling and
stirring equipment.
In the case of indigenous communities, intravenous use of methylamphetamine and the impact of
existing cannabis distribution networks also generate harms. Unlike solvent and inhalant misuse,
most intravenous use of methylamphetamine is covert and is believed to involve adult users.73
Community members raise concerns about the dangers of intravenous use in prison or visiting
urban centres and the harms of blood borne viruses associated with continued intravenous use
when users returned to smaller rural towns or remote settlements.74 Police are concerned that
serious and organised crime groups can easily use existing cannabis networks in rural and remote
communities to distribute methylamphetamine to Indigenous users.75 Methylamphetamine is easily
marketed as a form of ‘recovery’ from the depressant effects of cannabis and alcohol.
70
Pidd, K and Roche, AM 2011, Workplace Drug Testing: Evidence and Issues, National Centre for Training and Addiction (NCETA),
Flinders University, Adelaide.
71
Amphetamines in this study included amphetamine and methylamphetamine.
72
Bywood, P, Pidd, K & Roche, A 2006, ‘Illicit Drugs in the Australian Workforce: Prevalence and Patterns of Use’, Information & Data
Sheet 5, National Centre for Education and Training on Addiction (NCETA), Flinders University, Adelaide.
73
Putt, J & Delahunty, B 2006, ‘Illicit drug use in rural and remote Indigenous communities’, Trends & Issues in Crime and Criminal
Justice, No. 322, Australian Institute of Criminology, Canberra, viewed 22 March 2013,
<http://aic.gov.au/documents/4/0/0/%7B40035082-E504-4DF4-85A8-62BD95B80901%7Dtandi322.pdf>.
74
Ibid.
75
Ibid.
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Committee Question 12: What, if any, harm reduction/education measures would the ACC
support in attempting to minimise the harms associated with methylamphetamine use and ‘ice’ in
particular?
Waste Water Analysis
As a first step, the ACC believes that there is benefit in more precisely identifying the size of the
methylamphetamine market in particular jurisdictions and nationally, to add precision to
assessments of changes in the level of demand. To this end, the ACC suggests that consideration be
given to more broadly based wastewater analysis to augment existing methods of data collection.
Traditionally, measurement of the size of illicit drug markets and the effectiveness of policing illicit
drugs has required data to be collected on a wide range of indicators, including police
apprehensions and illicit drug seizures, purity levels, emergency room attendances, applications for
treatment services, illicit drug prices, user surveys, fatal drug overdoses, ambulance records and
needle exchange data. In at least two locations in Australia, analysis of wastewater is suggesting
that more accurate measurement of drug usage and the impact of drug-related law enforcement
activity might be possible.
Analysis of illicit drug metabolites in sewage (wastewater) provides an estimate of the consumption
of drugs in the catchment area. Studies currently being undertaken have provided indications of the
use of illicit drugs in Europe, North America and Australia. Analysis of wastewater accurately maps
drug prevalence trends in the area being serviced by the treatment facility. Changes identified by
this analysis can be compared with apprehension and seizure data, to identify possible causal
factors.
Collaboration with Industry
In terms of domestic manufacture of methylamphetamine, the ACC sees ongoing collaboration with
industry as an essential component of any harm reduction strategy. The ACC’s contribution to this
strategy is discussed further below.
Protection of Children
The ACC shares the concerns of our state and territory counterparts at the significant risks posed to
children who are present in premises when methylamphetamine is being manufactured. We invite
the Committee to consider whether it might be appropriate for the relevant legislation to be
amended to reflect these concerns, perhaps in terms of such behaviour being a circumstance of
aggravation when caregivers who permit children to be present are being sentenced.
Environmental Protection
The ACC is supportive of state and territory environmental protection agencies which act to contain
and overcome the negative environmental impact of clandestine laboratories and we regard this
work as being an essential component of a holistic harm-reduction strategy.
Protection of Indigenous Communities
We have noted in this submission that indigenous communities face specific challenges from
methylamphetamine use, and share other problems faced by the broader community. Part of the
work of the ACC’s National Indigenous Intelligence Taskforce is to identify illicit drug supply into
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indigenous communities and to alert state and territory agencies to this activity so it can be
disrupted.
Term of Reference 7: Review the adequacy of past and existing state and federal
strategies for dealing with methylamphetamine use.
The ACC is not in a position to evaluate the effectiveness of particular strategies. However, we note
that in terms of law enforcement strategies, national coordination and collaboration is at its
strongest level ever, through such mechanisms as:







the Serious Organised Crime Coordination Committee
the Australia New Zealand Policing Advisory Agency
the Australian Criminal Intelligence Forum
the ACC’s Fusion Capability
Customs and Border Protection’s National Border Targeting Centre
National Taskforces, including Attero and Eligo
The ACC Board.
Term of Reference 8: Consider best practice strategies to address methylamphetamine
use and associated crime, including regulatory, law enforcement, education and
treatment responses (particularly for groups outlined above).
Committee Question 13: How should the clandestine manufacture of methylamphetamines best
be addressed? Should the accessibility and availability of precursor chemicals be more strictly
regulated or controlled? If so, how and at what level, including point of purchase? Are border
controls on precursors adequate at present?
In 2011–12, methylamphetamine was the main drug produced in detected laboratories. 76
Accordingly, hardening the environment against methylamphetamine manufacture is important not
only to reduce the harm to users, but also the impact on the broader community.
Industrial Chemicals
As noted above, many of the precursor chemicals used in illicit drug production are extensively
used by industrial manufacturers in foodstuffs, pharmaceuticals, pesticides, textiles and numerous
other domestic consumables. Consequently, Australia has adopted a set of control measures in
accordance with the aims of the National Drug Strategy and the National Framework for the
Control of Precursor Chemicals and Equipment (Precursor Framework77) which seek to strike a
balance between meeting the legitimate commercial needs of industry while at the same time
preventing the diversion of vulnerable chemicals to illicit drug production. Government regulators,
in cooperation with chemical industry representatives, have developed and maintain the ‘Code of
Practice for Supply Diversion into Illicit Drug Manufacture’ (the Code). This is a voluntary system of
self regulation under which participating companies report to law enforcement on sales or any
76
Australian Crime Commission (ACC) 2013, Illicit Drug Data Report 2011-12, ACC, Canberra.
The Precursor Framework, which includes the National Drug Precursor Risk Assessment Capability and the Precursor Industry
Advisory Group, facilitates a national, coordinated and evidence-based approach to controlling precursor chemicals and equipment.
77
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suspicious movements of approximately one hundred proscribed chemicals which are known to be
used in illicit drug production.
Access to the technical details on illicit drug ’recipes’ was once a limiting factor in illicit drug
producers sourcing information on new manufacturing methods and their corresponding chemical
precursors. Now such information is rapidly disseminated and readily available globally through
websites devoted to illicit drug manufacturing techniques. As no means are available to restrict the
knowledge element of the illicit drug production cycle, control measures are focused on adequate
and appropriate controls being exercised over the chemicals essential to the synthetic drugs
industry.
Against this background, it is important that the Code keeps abreast of evolving drug manufacturing
techniques and the use of pre-precursors to defeat controls on traditional precursors. The ACC is
making a contribution in this context by discovering which new techniques and pre-precursor
chemicals are being used and assisting partner agencies to understand the implications for existing
regulations and legislation. The intention is to provide timely warning of new and emerging trends
in illicit drug manufacture.
Although it is virtually impossible to prevent the acquisition of knowledge of benefit to organised
crime groups via the internet, it is important that law enforcement agencies develop and maintain a
comprehensive knowledge of the content of the relevant sites. Once law enforcement agencies
develop an understanding of material organised crime groups can access to facilitate illicit drug
production they can develop a real-time perception of likely and emerging trends in illicit drug
manufacturing and formulate appropriate responses.
The ACC’s Project Alberta, which evolved from engagement with state drug squads and
representatives of the chemical industry, seeks to develop an understanding of legitimate uses for,
and identify suspicious trade in, some thirty novel chemicals suspected of being increasingly
diverted to illicit drug manufacture. Some of the chemicals being investigated are presently under
no controls either domestically or internationally, and hence the volume and frequency of
legitimate trade and ultimate consumption patterns are unknown. The ACC is receiving a positive
response from industry in relation to Project Alberta.
It is intended that the information on usage and possible diversion of these thirty chemicals will
inform regulators, in particular the Precursor Advisory Group, which is the body responsible for
advising government on precursor control measures. It will also provide the ACC and partner
agencies with opportunities to target and disrupt illicit drug production which is identified during
the life of the project. Several projects of this type have been successfully completed.
On a related issue, the Code requires that certain transactions involving chemicals and equipment
of concern be reported by suppliers to their local police drug squad. There is a requirement that an
End User Declaration (EUD) be completed for the transactions. A proposal is currently being
considered by a multi-agency working group for a system of electronic EUDs to be rolled out, to
facilitate their drafting and processing and to permit sharing of the contents of potentially
suspicious transactions across jurisdictions. The ACC is supportive of this initiative.
Pharmaceuticals
Project STOP - a national real-time system operated by The Pharmacy Guild of Australia to record
retail purchases of products containing pseudoephedrine – is an initiative aimed at reducing the
diversion of pharmaceutical products containing pseudoephedrine to the illicit drug manufacturing
market. As at 30 June 2012, 79.2 per cent of approved community pharmacies were registered with
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Project STOP. For the best part of a decade, the project provided invaluable information to law
enforcement agencies and the project is widely credited with reducing the quantity of
pseudoephedrine available to organised crime groups for methylamphetamine manufacture.
Project STOPis considered by the ACC to be integral to the disruption of domestic
methylamphetamine manufacture. The Committee may also consider whether there is value in
legislating to ensure that the recording of pseudoephedrine purchases by pharmacists is
mandatory. Issues concerning Project STOP are currently being considered by a multi-agency
working group led by the New South Wales Police Force.
Committee Question 14: How effective are state laws in investigating, addressing and combating
(meth)amphetamine use? What, if any, legislative reform is needed?
Apart from the matters raised above, the ACC is unable to comment on this issue, beyond noting
that there is general consistency in Commonwealth and state legislation in this area, which is
desirable.
Committee Question 15: How effective are asset confiscations laws in deterring organised
criminal activity? How could they be improved?
The ACC supports unexplained wealth provisions. Unexplained wealth provisions are needed to
undermine the profit motive for criminals, who acquire significant wealth, but who are sufficiently
sophisticated and powerful to distance themselves from the actual commission of crimes.
Unexplained wealth provisions must be timely and effective – being capable of restraining and
confiscating assets that could otherwise rapidly disappear into untraceable jurisdictions.
Unexplained wealth or similar laws currently exist in six Australian jurisdictions:
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the Commonwealth (limited to confiscation of unexplained wealth derived from offences
within Commonwealth constitutional power)
Western Australia
Northern Territory
New South Wales
Queensland
South Australia
There are significant differences between the various Commonwealth and state unexplained wealth
models. These differences broadly relate to:
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whether a link to an offence is required through either a reasonable suspicion that an
offence has occurred or that a person has obtained the proceeds of an offence
whether a court has a discretion to make an order
whether unexplained wealth provisions form part of a state’s asset confiscation legislation
or are in stand-alone legislation; and
time limits on unexplained wealth orders.
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A review is currently being undertaken by Mick Palmer AP APM and Ken Moroney AO APM. The
Panel is working with the Federal, State and Territory Governments to examine these issues and
will soon report to the Government.
Committee Question 16: Are there national or cross-jurisdictional issues that have an impact on or
concern for Victoria (for example, inconsistent state laws, resourcing problems at national and
state level, state border smuggling and control) that you would like to comment on?
The ACC enjoys effective and positive relationships with state, territory and Commonwealth law
enforcement, policy and regulatory partners which facilitates a broadly-based response to the
methylamphetamine market.
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