Allan government to license tobacco and vape sales

Victoria will introduce a licensing scheme for tobacco and vape sales in a change which could limit the number of outlets in any single area.

Victoria will adopt a licensing scheme for tobacco and vape sales to give police stronger powers to crack down on a surging black market.

Jacinta Allan has revealed government plans to introduce legislation to parliament later this year.

It comes following an independent review of illegal tobacco sales from the Commission of Better Regulation.

Ms Allan said there would not be a cap on the total number of tobacco store licenses issued but there could be limits on the number of outlets in a single area.

“This is one of the matters that is under active consideration because what’s driving that proliferation of the number of outlets is a market that is seeking the product,” she said on Thursday.

Melbourne has been rocked by dozens of firebombings on tobacco stores. Picture: David Crosling

Applicants could also be subject to background checks but Ms Allan said the government was yet to decide on how the new licensing scheme would be enforced.

“There’s different models, there’s different views on how best to enforce the new regulatory environment,” she said.

“We’ll take on-board that feedback and announce that as we introduce the legislation into the parliament.

“There’s different agencies who already perform regulatory functions in the oversight of food handling, obviously gaming and liquor is another example.

“We’ll just take a little bit more time at the moment and that will be part of our next stage of consultation and announcements.”

Organised crime bosses have snared a $1bn-plus windfall in three years from illicit tobacco rackets across the state.

Skyrocketing taxation has rapidly driven up the price of legal tobacco products, driving customers in their droves towards the outlaw trade.

Crime groups have firebombed dozens of tobacco shops over the past year, prompting police to set up a dedicated illicit tobacco unit, the Lunar Taskforce.

Jacinta Allan says organised crime and consistent price rises on cigarettes have driven the government to act.

Ms Allan said both organised crime and consistent price rises on cigarettes had driven the government to act.

“We know that the organised crime elements are what’s driving those terrible instances for local communities,” she said.

“Vic Pol are doing a really good job, they’ve got a dedicated taskforce and they are making arrests.

“The introduction of a licensing scheme will help reinforce that work with Victoria Police, but that’s not the only reason, obviously, why we’re doing it.”

Opposition consumer affairs spokesman Tim McCurdy said the government had taken too long to act.

Mr McCurdy said in parliament last month, the government refused to debate a motion which raised concerns about an inaction on crime.

“After months of inaction and denial, Premier Allan has finally caved to mounting pressure,” Mr McCurdy said.

Police have set up a dedicated illicit tobacco unit. Picture: Andrew Henshaw

“The Allan Labor government’s failure to address the escalating crime wave surrounding illicit tobacco has left honest businesses and individuals vulnerable, with crime heightening based on a lack of decisive action, it’s about time Premier Allan woke up.

Mr McCurdy labelled the move “merely reactionary”.

“Labor’s failure to heed earlier warnings has allowed the illicit tobacco trade to grow rapidly,” he said.

Former Victorian MP Tania Maxwell, who advocated for tobacco reform in parliament which in part led to the Better Regulation report, said the reform was long overdue.

“It’s a smart thing to do, especially given we know that the number of retail outlets that are selling ‘chop chop’ will continue to grow,” she said.

“(The market) already is underground. We know people are selling illegal tobacco so this provides a certain protection for those retailers who are selling tobacco but are paying the taxes and duties that go with selling these products in a legal way.

“This is timely, given we’ve had so many firebombings of these outlets.”

Australian Association of Convenience Stores (AACS) chief executive Theo Foukkare said his 1700 members were eager for the scheme to be up and running “as soon as possible”.

“It’s important that we sit down with the Victorian government now to talk through the details, and we are very keen to be part of the working group that will help shape this important law,” he said.

“The scheme must be suitable for compliant retailers and it’s essential it doesn’t put unnecessary burdens or costs on small businesses that have been doing the right thing.”