NSW cops could be reallocated to combat illicit tobacco trade as Premier Chris Minns throws down gauntlet on excise

Police in one Aussie state could be redeployed from tackling domestic violence and youth crime to combat the growing illicit tobacco trade.

NSW Opposition Leader Mark Speakman has slammed Premier Chris Minns over suggestions police officers working in domestic violence and organised crime could be diverted to crack down on illegal tobacco.

Mr Minns on Tuesday threw down the gauntlet with the federal government over the tobacco excise, amid budget considerations about rolling out resources to tackle the statewide scourge.

Part of this includes whether NSW Police focus more on the tobacco war.

The Premier said he was worried “as a constituent and a father” about the number of tobacconists propping up around Sydney, but said he wondered if state and federal leaders needed to take a step back and rethink the tobacco excise.

“I think that that’s important. I’m not arguing that the public health benefits of putting an exercise on tobacco.

“But, the massive increase (in the excise) has exploded the illicit tobacco marketplace.

“It’s meant that many people who would go near any illegal behaviour ordinarily are buying illicit tobacco almost daily, almost from every street.

“We need to look at how big this excise is and how its driving illegal tobacco sales”.

Currently, illicit tobacco sales are investigated by NSW Health.

NSW Premier Chris Minns has called for a rethink on the government’s tobacco excise. Picture: NewsWire/ Gaye Gerard

More than 20 compliance officers are tasked with managing the tens of thousands of tobacco stores statewide.

Mr Speakman said the resourcing to combat the “unprecedented” rise in illegal tobacco “just hasn’t been good enough” and accused Mr Minns of shifting blame onto Canberra.

“He (Mr Minns) either blames us, or he blames Albo, or he blames someone else,” Mr Speakman said.

“Clearly, the illegal tobacco trade in NSW is out of control. It’s a mess that has festered under Chris Minns.

“But, rather than take responsibility for fixing the mess, he’s pointing the finger at Canberra and excise taxes.”

Mr Speakman ruled out calling for a change to the excise, telling reporters “it’s a matter for Canberra”.

He also dismissed changes to the state’s policing, stating there should be “absolutely no diversion of organised crime police”.

Opposition health spokesperson Kellie Sloane admitted on tobacco that “the horses bolted on this, but we can’t accept that”.

“Law and order should never be a zero sum game,” she said.

“We should not be making a choice between domestic violence and other crimes and illicit tobacco.

“There should never be a choice”.

Ms Sloane went on to add: “There are roughly 20 compliance officers across NSW but 20,000 stores.

“It is like shooting a water pistol at a tidal wave.

We are not going to get results unless we invest in compliance officers.”

The NSW Liberals were a leading advocate for a parliamentary inquiry, announced last month, into illegal tobacco in NSW.

Mr Speakman said the inquiry would investigate what agency was best suited to the task, including NSW Police and Health.

Mr Minns said the ‘current situation is intolerable’. Picture: NewsWire/ Gaye Gerard

Mr Minns said he wanted NSW Health officials “running hospitals, not conducting criminal investigations”, and police would instead have to decide whether they would allocate police to tobacco “at the expense of every other crime in NSW”.

He asked: “Is there a better way?”

“The massive excise has meant people haven’t stopped smoking, it just transferred their sales into illegal tobacco sales.

“The current situation is intolerable.

“We can’t have every to-rent shop on every high street in Sydney in Sydney being taken over by a tobacco company when the rate of tobacco has remained stable.”

Mr Minns said the “biggest supporters” of the excise were organised criminals.

When asked if he’d put his feelings to the federal government, he said: “I have now.”

The excise on tobacco in Australia increases twice per year in March and September under law.

Despite the excise, the revenue made from those sales by the federal government has tanked, according to the most recent federal budget.

The federal government expects to earn $7.4bn in revenue from the tobacco excise in this financial year. That’s down sharply from $12.6bn in 2022–23, and an earlier peak of $16.3bn in 2019–20.

The downward trend is expected to continue.