Allan government introduces long-delayed tobacco licensing scheme to parliament

The Allan government’s tobacco licensing scheme has been introduced to parliament, with the premier declaring it the “toughest in Australia”.

A new tobacco licensing scheme described as the “toughest in the nation” has been introduced to Victoria’s parliament on Tuesday as the Allan government cracks down on the chaotic illegal trade.

The long-awaited scheme comes after fire bombings linked to the illegal trade in Victoria surpassed 110 amid a raging war over its control which has now spread to other states.

Under the licensing scheme, individuals who sell tobacco will need to register with the government and pass a ‘fit and proper’ person test.

Anyone found to be selling tobacco illegally will face fines of up to $355,000 or 15 years in jail, while businesses will face fines of more than $1.7m.

Police will be granted greater powers to raid, search and seize illicit products.

Premier Jacinta Allan said the “strict new licensing regime” was the “toughest in Australia”.

“The toughest penalties, strict new licensing regime with those dedicated inspectors, more powers for the Victoria Police and the massive penalties, the toughest in Australia, are all being presented to the parliament today,” she said.

Premier Jacinta Allan said the new tobacco licensing scheme was the “toughest in Australia”. Picture: Aaron Francis

A new tobacco regulator will also be established, with inspectors set to hit the streets to hunt down offenders.

Police Minister Anthony Carbines said the goal was to “run organised crime out of this state”.

“When police seize illicit tobacco, they can use those additional penalties immediately,” he said.

Mr Carbines said the tough new laws were expected to come into play next year.

Chief Commissioner Shane Patton said the force would use internal intelligence to assist those handing out tobacco licenses.

“We know a lot of things about a lot of people that we don’t say publicly, we’ll be able to use that,” he told ABC Radio Melbourne.

“(The scheme) by itself won’t stop the conflict that we have at the moment... (but) this will add to our ability to make a difference to the Middle Eastern organised crime gangs who are profiting from illicit tobacco.

“This is a great step forward for us.”

Opposition leader John Pesutto said Victoria had lagged the nation in introducing a licensing scheme and criticised the Allan government for now trying to hurry its one through parliament without proper debate.

“It’s very late,” he said on Tuesday.

“Victoria stands out as the only regime in Australia that doesn’t have a licensing system.

“Equally, we’re seeing a pattern of dysfunction and incompetence by the Allan Labor government.

“This is the third time in recent months where the Allan Labor government has had to come into the parliament and ask us to effectively forfeit our right to have a normal and reasonable debate about bills that are brought into the parliament.”

There have been more than 110 firebombings of tobacco stores in Victoria. Picture: David Crosling

Fierce backlash to the scheme came from the crossbench with Libertarian MP David Limbrick claiming the proposed laws would lead to more violence.

“Increasing penalties will increase the incentives for more violence and more corruption,” he said.

Mr Limbrick suggested criminals would “pay to corrupt officials” or “take out a hit” before they coughed up a $1m fine.

“How much do you think it costs to take out a hit on someone or bribe a government official?” he said.

“I’m guessing it’s a lot less than a million dollars... this is the totally wrong approach.”

Australian Association of Convenience Stores chief executive Theo Foukkare said the scheme would be a “game changer”.

“These laws must pass immediately to allow authorities to try and get on top of Victoria’s illicit tobacco war that continues to put the lives of innocent people at risk,” he said.

“These laws are a game changer, and we need them to kick in now.”

Mr Foukkare said crooks profiting millions from the underground trade would be run out of business eventually.

“These fines are the biggest in Australia and will send a clear message to the dodgy operators in Victoria that their days are numbered,” he added.

“The ‘fit and proper person’ test is essential in guarding who can responsibly sell tobacco products and who can’t. People can be refused a licence based on their history and known associates.”

The state government rejected a push by the opposition two weeks ago to introduce a new licensing scheme which included fines of up to $1m for offenders.

A person would also have been required to pass a fit and proper person test to be able to sell tobacco, much like those applying for a liquor license.