Smuggled cigarettes for sale on day one of new licensing requirement
On the first day of the state government’s promised crackdown on the illicit tobacco market, it appeared to be business as usual; There were even packs of smuggled cigarettes being sold in an unlicensed shop just meters from the headquarters of the new regulator, Tobacco Licensing Victoria.
Just before 10 a.m., Age He bought a pack of Manchester cigarettes, priced at $20, from the shop on Bourke Street, less than 100 meters from the Department of Justice and Community Safety and just 200 meters from the Houses of Parliament. A legal pack of cigarettes costs more than $50.
According to the public registry activated by TLV on Sunday morning, the store does not have a license to sell any tobacco products. Attempts to contact the store owners were unsuccessful.
Manchester is an illegal brand in Australia that fails to meet plain packaging standards. It is now the most smuggled and smoked cigarette in the country.
On Friday the state government announced more than 4,000 applications had been submitted for tobacco sales licenses in Victoria before the new regulatory scheme came into force on February 1, its deadline.
Sunday marked the beginning of the government’s $46 million implementation plan; This is almost two years since the repression bill was first debated and more than a year since it was passed by parliament.
According to a study, there are about 8,000 tobacco retailers in the state, of which about 1,300 are shops selling illegal tobacco. Estimated by Latrobe University and law enforcement sources.
At a press conference on Friday, Casino, Gambling and Liquor Regulation Minister Enver Erdogan and new head of Victoria’s Tobacco Licensing Bree Oliver promised a laser-focused approach to the new regulator in a bid to stamp out organized crime involvement in the industry.
“The message is simple: If you want to trade tobacco, you need to get a license from February 1,” Oliver said. “If you have not applied for a license by February 1, you cannot continue trading.”
“Our inspectors will be active in the community, taking action on compliance while also holding illegal operators accountable.”
Oliver’s appointment announced After a significant delay As of mid-December we are still trying to find someone to fill the agreed role. The job pays up to $430,000 a year.
Oliver and Erdogan said investigators would begin the crackdown on Sunday. It remains unclear how many inspectors were deployed on Sunday or what the outcome of their operations was.
But the uptake and compliance rate among retailers who openly or covertly sell illicit tobacco is dismal, according to a survey in a northern suburb. Age.
Reservoir is one of the city’s largest suburbs by area and has the highest concentration of illicit tobacco retailers in the metropolitan area outside the CBD, according to industry data.
Of the 18 shops confirmed to sell illegal tobacco in suburban Manchester, only three and legal brands had been licensed by Sunday morning.
There are even two large specialty tobacco and vape shops in the area that sell illegal products 24 hours a day. Only one of them chose to obtain a state government license; He was still selling illegal cigarettes and e-cigarettes on Sunday. Another Reservoir shop was not open because it had been destroyed in an arson attack less than a week earlier.
According to TLV records, the majority of licensed vendors are supermarkets, 7-Eleven convenience stores, gas stations and liquor stores.
According to the rules, businesses will be able to continue selling tobacco if they apply before February 1, but they will not appear in the public registry until a decision is made on their applications.
Under the state government’s plan, any person found by investigators to be selling illegal products would be fined up to $366,318 or imprisoned for up to 15 years, while for businesses or incorporated associations that operate a store, the penalty is $1.8 million.
Those selling tobacco without a license can be fined up to $170,948 or imprisoned for five years, while businesses face fines of more than $854,000. TLV will also be able to suspend and revoke licenses, seize illegal tobacco and prosecute.
Police sources, who were not identified when speaking publicly about government policy, said planning for the licensing crackdown was “a complete mess”.
The state government has funded only 14 inspectors to cover the entire state, and teams must employ at least two people due to safety concerns. There was a serious row behind the scenes between TLV and Victoria Police, who refused to provide officers for regular escort duty to inspectors.
“We will work with Victoria Police and others because we will not take unnecessary risks with their safety,” Oliver said.
Hundreds of stores across the state are under the direct control or influence of the multibillion-dollar illegal tobacco cartel run by gang boss Kazem “Kaz” Hamad.
Hamad disappeared from an Iraqi prison after he was arrested by local authorities last month after an intelligence dossier on his activities was handed over to Iraq’s judicial authorities by Australian law enforcement.
The arrest of the 41-year-old, who is allegedly responsible for starting the tobacco war that led to 200 firebombs, multiple shootings and scores of murders in early 2023, has not yet had any impact on the illicit tobacco market.
The new plan has been welcomed by Quit and Cancer Council Victoria, which supports smokers and those using e-cigarettes to kick the habit, but it has also raised some concerns.
“We have reservations about the limited powers of Victorian licensing inspectors and the size of the workforce, with only 14 inspectors for the whole state,” Quit director Rachael Andersen said in a press release.
“Under the Victorian plan, inspectors will not be able to close down shops selling illegal tobacco, nor will they be able to take action against shops selling illegal vaping products.
“While this plan provides the basis for action on tobacco, it needs to be backed by more powers and more inspectors to better protect Victorians from the harms of tobacco.”
Lockdown laws have resulted in the widespread closure of the illicit tobacco retail market in Queensland, although sales continue apace through online portals.
On Friday, Erdogan also said the government was now looking at “developing our own lockdown laws.”
“Fourteen [inspectors] “This is a strong start, but we will re-evaluate capacity as we move forward,” he said.
with Kieran Rooney
Start your day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
