National Greens Leader Richard Di Natale wants the Federal Government to legalise marijuana.

He says an agency should be set up to act as the wholesaler, which would issue cannabis to licensed retailers.

Independent Senator Derryn Hinch is backing the idea, as is Liberal Democrats Senator David Leyonhjelm.

He tells Chris Kenny it’s a “nanny state issue” and the proposed agency is “ridiculous”.

“It’s not the government’s business to save you from yourself.”

“The rest of the world is legalising marijuana and it’s not being done by bikies, it’s not being done by organised crime, it’s being done by private business.

“They’re employing people and paying taxes.

“It’s taking it out off the hands of the criminal gangs.”

Listen to the full interview below