A parliamentary report has recommended the Federal Government spend more money on helping people overcome the devastating affects of drugs such as ice.

Liberal Senator Ian Macdonald chaired the committee that looked at the effectiveness of the National Drug Strategy.

It unanimously recommended the Government spend more money on harm reduction.

The committee found the mental health problems associated with drugs such as ice were made worse because users were reluctant to seek help due to a fear of criminal sanctions.

The report says that while law enforcement efforts should not be diminished, more money should be spent on treatment, particularly for young people.

However the assistant Health Minister, Christopher Pyne, has ruled out accepting the recommendation.

"We've spent $1.3 billion on the tough-on-drugs strategy," he said.

"Now is not the time to be wavering in the war on drugs by embracing harm minimisation over a tough-on-drugs approach."

The committee also considered, but did not endorse, the testing of ecstasy tablets at rave parties.

The committee's report says prohibition drove drug use underground.