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
Weight of people trying to sign caused government petition to website to crash as Europhiles try to force a rerun of the EU vote.
A mother whose young daughter died after allegedly "shooting herself in the face" has been charged with murder.
Hundreds hit the streets of some of England and Scotland's biggest cities in protest over the "anti-immigration" tone of the Brexit campaign