Canada on Thursday introduced legislation easing penalties for drug crimes such as possession which the government says disproportionately harm Black and indigenous offenders.

It is a significant move away from incarceration and toward the treatment of problematic drug use as a health and social ill requiring intervention for addictions.

It follows protests last year against what activists said has been the criminalisation of mental health issues, addiction and poverty in this country.

"We are turning the page on failed approaches which have disproportionately hurt indigenous peoples, Black Canadians and marginalised communities," said Justice Minister David Lametti.

Existing criminal penalties have not deterred drug users or made communities safer, he said.

These reforms, he said, would help address "systemic racism and discrimination in the justice system."

The bill - which must still be passed by parliament - proposes scrapping mandatory minimum jail sentences for non-violent drug crimes, and instead allowing judges to order house arrest or mandatory counselling.

It also encourages authorities to help individuals get treatment for addictions rather than charging them with simple drug possession.

This would apply to cocaine, heroin, amphetamines, opioids, LSD and other narcotics. Cannabis for recreational use was legalised in 2018.

"Instead of talking tough on crime, let's be smart on crime," commented Public Safety Minister Bill Blair, a former Toronto police chief.

He said diverting resources from policing to health-care responses, for example, would better help deal with an opioid crisis that has claimed about 4,000 lives per year in Canada.

According to government data, indigenous Canadians represent 5% of Canada's population of 38 million, but 30% of inmates in federal custody.

Black Canadians represent 3% of the population but 7.2% of inmates.

The justice department noted that number of offenders given mandatory minimum sentences has soared since they were introduced a decade ago.