Victoria to shut down dodgy smoke shops under new laws
Updated ,first published
Under the legislation, which the Allan government is touting as “Australia’s toughest illegal tobacco laws”, Victorian authorities will be given the power to close dangerous smoke shops and landlords will have the power to terminate leases of illegal tobacco shops.
Casino, Gambling and Liquor Regulation Minister Enver Erdogan detailed the proposed legislation on Sunday, marking a significant escalation in the state’s efforts to extinguish a violent black market trade linked to more than 200 firebombs.
Building owners who knowingly rent their stores to illegal operators will also face huge financial penalties under changes proposed to be introduced before this year’s state elections.
While Erdogan was cautious about exact figures at a press conference on Sunday, he said the fines would be commensurate with fines in other states and “much more than tens of thousands of dollars.” But landlords will also be given new legal powers to close down businesses caught selling illegal products.
The legislation will give new regulator Tobacco Licensing Victoria (TLV) and Victoria Police the power to issue an immediate 90-day closure order. Courts will also be given the power to order permanent or indefinite closure.
Erdoğan said, “Illegal tobacco fuels organized crime and we are closing down operators who think they can get away with it.”
“The message should be clear: If you get involved in this illegal trade, tough new penalties will be imposed.”
The announcement comes in the first month of TLV enforcement, which saw $5 million worth of illicit stock seized from shelves, including more than 3.19 million cigarettes, 2243 cigars, 40 kilograms of loose leaf tobacco and 32 kilograms of hookah tobacco.
The new regulator faced a slow start. In February, the new licensing requirement for businesses selling tobacco products came into full force on its first day. Age It found that smuggled cigarettes were being sold in an unlicensed shop just 100 meters from the regulator’s headquarters.
The state faces the monumental task of wresting control back from a prolific black market. It is estimated that 60 percent of cigarettes sold in Australia come from black market sources.
The multibillion-dollar illegal trade is dominated by rival crime families, including a cartel known as “The Commission” led by gang boss Kazem “Kaz” Hamad.
Although Hamad is now in a prison in Iraq, the vacancy has sparked a new wave of violence across Melbourne as new players compete for a slice of the lucrative market.
Erdogan confirmed that there are only 14 TLV inspectors tasked with dealing with thousands of stores believed to be selling illegal products. On Sunday he defended the small workforce, arguing the regime was “based on intelligence risk” and would be supported by Victoria Police’s frontline powers.
Erdogan acknowledged that some TLV inspectors already face threats in the field. Police sources had previously revealed plans for the crackdown. Age There was “total chaos” as there was serious friction between the new regulator and Victoria Police over providing escorts for inspectors. Victoria Police was not present at the announcement on Sunday and has been contacted for comment.
Police Union Victoria secretary Wayne Gatt welcomed the new powers but warned effective implementation required an appropriately resourced police force. Citing the “gravity and scale” of the state’s crime crisis, he called on the government to restore the force to its targeted officer strength of 17,020.
One of the key points of the new laws is the accountability of property owners. The Shopping Center Council of Australia welcomed the latest move, saying statutory lease termination rights are also effective in other jurisdictions.
“Our industry welcomes the Victorian government’s announcement,” council leader Angus Nardi said. “The proposed reforms will make a real difference on the ground.”
The Real Estate Institute of Victoria has been approached for comment on the culpability of agents and the definition of “knowingly” allowing illegal sales. Real estate agents often act as intermediaries for overseas investors who do not have direct knowledge of their tenants’ activities.
Legal businesses, which have long struggled to compete with illegal $20 packs of cigarettes, welcomed the government’s proposed laws, including the heads of independent supermarket chains who were present at the announcement.
Ritchies IGA managing director Fred Harrison, who is also the landlord, said professional property managers had no excuse for ignoring red flags. He cited examples he personally witnessed of the opening of so-called “barber shops” that do not even have barber chairs and sell illegal tobacco.
“The homeowners, the smart people, concluded that it was a waste of time to put a tobacco shop here,” Harrison said, noting that insurance companies now refuse to cover centers that house illegal dealers.
Under the new regime, inspectors will have the power to destroy illegal tobacco seized before pre-trial, to ensure that the product is not put back into circulation. Erdogan said the closed stores would be identified with “thick stickers” and was announced on TLV’s website.
The public is encouraged to use an anonymous tip line on the regulator’s website to report non-compliance in their local shopping area.
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Rachael Dexter is a journalist working on The Age’s City team. Contact her at rachael.dexter@theage.com.au, rachaeldexter@protonmail.com or via Signal at @rachaeldexter.58.Connect with: Facebook or email.
