Keith Vaz, chairman of the Commons home affairs select committee, said a Royal Commission is needed to explore all the issues around drugs.
He called for testing in prisons, measures to tackle legal highs and a look at how drugs money flows through our banking system.
He said: "In prisons we believe there should be compulsory testing, on arrival and on exit, and random testing during a prison sentence.
"On legal highs, it's moving so fast, there is a new legal drug every single month and we need a fast track system.
"Finally if you look at the banking system, this is the most lucrative crime in the world."
More top news
Some dogs have been at the Battersea Dogs and Cats Home for more than a year. Can you make their Christmas and give them a new home?
Selfless Donna Wood from Staffordshire has left her husband and children at home so she can help save lives in Sierra Leone.
From Sierra Leone to Cyprus, 8,500 Christmas boxes were sent out to every serviceman and woman from the UK.