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."
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