Retailers demand $1m fines as tobacco turf war intensifies

More than 300 Queensland retailers are calling for more to be done to crack down on a “violent” tobacco turf war after a string of ram raids and attacks at legitimate businesses.

Fears are mounting that the escalating suburban tobacco turf war will see someone killed as organised crime gangs infiltrate lucrative under-the-counter ‘chop’ shops sparking calls for the government to crack down on the illegal trade.

More than 1500 retailers across Australia, including 300 from Queensland are demanding all state governments increasing penalties as dodgy operators continue to sell illegal products in plain sight.

Queensland store owners want fines of up to $1 million and they want Queensland Police to be given the power to raid and prosecute traders selling black market vapes and tobacco. Under existing laws, only Queensland Health has the authority to prosecute.

In Queensland, 19 tobacconists have been targeted in crimes since the beginning of 2023, including 10 so far this year. The majority of these crimes involved ram raids into the business before being set on fire, while other offences were break-ins and thefts.

Police sources say some of the attacks are allegedly being orchestrated by rival Outlaw Motorcycle Gangs (OMCGs) and carried out by low-level criminals.

The crimes sparked Queensland Police to launch Taskforce Victor Masher earlier this year following an increase in theft, arson and wilful damage incidents targeting vape and tobacco stores across the state.

The entrance and insides of Habibi’s Convenience and Tobacco Store were destroyed in a Strathpine ram raid. Picture Isabella Pesch

“Some of our retail colleagues tell us they can’t visibly support us out of fear of violent

reprisals from the crime gangs,” Terry Slaughter, from the Queensland IGA Board of Directors.

Former Border Force and Federal Police Officer Rohan Pike and veteran investigator into tobacco scams said that illegal tobacco trading was “beyond the point of mere regulation by Queensland Health”.

“The police are the only ones with the power to handle this escalating level of crime. It is out of the reach of a health department.

“We’ve all seen how the problem has exploded in Melbourne into a full-blown mob turf war.

More than 60 stores have been firebombed and two people killed”, he said.

The Australian Border Force said it had detected, seized and destroyed more than 410 tonnes of illicit tobacco and 1.7 billion cigarettes between July last year and May this year in a haul estimated to have cost the federal government $2.5b in evaded duty.

The community retailers group is calling on Health Minister Shannon Fentiman to increase fines to $1m dollars as illegal operators scoff at current penalties.

They claim the first store owner prosecuted in Queensland was fined $43,000 and was open for business the next day and this is commonplace in Melbourne where the tobacco turf wars have escalated to frightening levels.

In June, the Queensland government introduced legislation cracking down on illegal tobacco

providers. Ms Fentiman said then the government “had a zero tolerance approach to illicit tobacco and nicotine”.

From September 1 retailers or wholesaler of smoking products in the state will be required to hold a smoking product supply licence.

“Children are buying illegal tobacco under the counter, and as the products are unregulated, no one has any idea what’s actually in the tobacco, potentially even causing greater harm. The aim of the Queensland legislation is to stop children and young people from getting addicted. But it’s easy to buy under-the-counter vapes and illicit tobacco almost anywhere,” Mr Slaughter said.

Just this week, newly-opened tobacconist Habibi’s at Strathpine was damaged after a group of people rammed a car into bollards at the front of the store and set it alight.

Meanwhile, an arrest warrant remains outstanding for a Queensland man who is alleged to have deliberately lit fires at tobacconist businesses at Burleigh Heads, Acacia Ridge and Spring Hill last year.

There is no suggestion that Habibi’s or the other stores mentioned are involved any way with unlawful conduct.

Shop owners are also suffering a considerable drop in tobacco sales due to the flood of black market products.

Queensland Health said more than 22.6 million illicit cigarettes, 8.6 tonnes of loose tobacco and 221,000 vapes with a total street value of $36.5m had been seized in Queensland in the past year.

“Our public health officers have the power to investigate and seize illegal tobacco and vaping products in retail settings and they work closely with law enforcement, including Queensland Police and the Illicit Tobacco Taskforce,” a Queensland Health spokesman said. He said more than 3000 enforcement and inspection activities had been conducted in the past year .

‘We need all law enforement involved’

Small business owner Tyrone Jones is unhappy with dodgy cigarette retailers and those suppling the blackmarket. Cleveland Friday 2nd August 2024 Picture David Clark

Tyrone Jones owns eight stores in Queensland and has first-hand experience of being caught up in the violence surrounding the illegal tobacco trade.

“Crime gangs are waging war in the suburbs. One of my stores is close to an under-the-counter tobacconist that was under attack. My premises was damaged. I am very fearful for the safety of workers,” he said.

“This is a problem in communities across the state, it is not just reserved for the city. It is frightening.

“I watch how kids just stream in and out of these places and they can buy whatever they like whether it is vapes or cigarettes. I thought the legislation was introduced this year because of shocking numbers of kids … vaping but the laws are definitely not working,” he said.

“That is why the community retailers group is calling for change. These illegal traders are just thumbing their nose at the authorities. We need all law enforcement involved.”

Queensland Health-led agencies are responsible for enforcing the new law.

“Never mind the health threats to kids, the retailers are very fearful that an innocent person will be killed … The Queensland government need to step up,” he said.