Tobacco war that has caused havoc in Melbourne threatens to spread to Gold Coast

Shadowy underworld figures are believed to be trying to muscle in on the lucrative tobacco business on the Gold Coast. Here’s what it means for local communities and legitimate retailers.

Here’s the good news: According to police sources, a number of organised crime groups have quit the drug trade.

And the bad news: They’ve done so because they have realised they can make more money, at less risk, dealing in illicit tobacco.

The penalties for being caught dealing in illicit tobacco are far less than they are if the substance is ice or cocaine. Yet the profits can be very substantial, a fact that has not gone unnoticed by crime bosses.

Legally sold, a packet of 20 Marlboro cigarettes costs $40 – by some distance the highest price on the planet. In Vietnam that same packet costs $1.89. Local brands can be as little as a dollar a packet.

But smuggled into Australia and sold under the counter, Asian or Middle Eastern cigarettes can fetch up to $30.

The customer thinks they’re getting great value, but in reality they’re funding some characters they probably don’t want in their community.

Fire Investigators at the scene of an arson attack on a tobacco retailer at Ashmore Plaza Shopping Centre. Picture: Glenn Hampson.

Chairperson of the Queensland Crime and Corruption Commission, Bruce Barbour, said organised crime had a history of infiltrating industries where there was potential for “massive profits”.

“There has been well-documented infiltration and involvement of criminal syndicates in other industries over the years and it is concerning to see evidence of criminal activity manifesting in the tobacco and vape industry,” Mr Barbour said.

“Many in the community may not realise when purchasing cheap or under the counter tobacco products or vapes that they could be funding organised crime, who then go on to use these ill-gotten financial gains to fund other criminal enterprises. They may have no idea their money may be funding very serious criminal activities in Australia and beyond.”

Among the losers are legitimate tobacco retailers who seek to follow the law. They are either driven out of business because they can’t compete on price with stores selling illegal products, or worse, become victims of extortion from criminal gangs.

In Melbourne, almost 30 tobacco shops have been firebombed this year. Police believe that in many cases the attacks follow visits from organised crime figures. Shop owners are warned that they must agree to sell the underworld figures’ illegal products or pay a weekly “tax”. If they don’t quickly agree, their business is burned to the ground.

A Burleigh Heads tobacconist which was also badly damaged by fire.

On the Gold Coast, too, tobacconists have been targets of arson attacks.

Last month a fire destroyed a tobacco store at Ashmore Plaza and severely damaged neighbouring businesses.

On the same day, a Burleigh tobacco store was damaged by a fire after a bin was set alight next to its entrance.

Police sources said a possible motive for the attacks was a “warning” from organised crime figures.

“You would be escalating organised crime and illegal vape and tobacco syndicates to the top of the list of suspects in a case like this,” an officer said.

“I wouldn’t be ruling out the possibility of these events being interpreted as a warning or an attempt to try and scare very legitimate businesses out of the market. The margin on these products is healthy and helps fuel other activities for criminal enterprises”.

Theo Foukkare, CEO of the Australian Association of Convenience Stores.

Theo Foukkare, who is Chief Executive Officer at the Australian Association of Convenience Stores (AACS), said part of the problem was the “sky high” prices legitimate retailers were forced to charge customers for tobacco products due to Federal taxes.

In May, Health Minister Mark Butler announced those taxes were to rise further.

“Mark Butler has been Health Minister for nearly a year and a half and has overseen a rapid growth of Australia’s tobacco and vape black market,” Mr Foukkare told this column.

“Communities and lawful retailers are now dealing with the serious consequences of this out of control black market that Mark Butler has done nothing to address.

“ … We’ve got predatory black market operators selling to kids and we’ve got violent arson attacks happening here in Queensland and also in Victoria. It’s time for governments to wake up and realise prohibition is driving this.”

It’s probably time for consumers to wake up, too.

There would be no profits in illicit tobacco if people weren’t buying it in big numbers.

This columnist has in the past taking the time to observe the comings and goings at Gold Coast tobacconists reputed to be selling illicit products. The amount of locals patronising these businesses was extraordinary.

Keen pricing will do that. But if it’s helping to line the pockets of crime barons, you can be sure the community will pay a hefty price down the line.

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