Inquiry into Victoria’s illegal tobacco and vape trade reveals kids paid $500 to firebomb shops

Vulnerable kids are firebombing shops and carrying out “standover extortions” for as little as $500 in the battle for power over the state’s illegal tobacco trade, an inquiry has heard.

Victorian kids are being lured into firebombing shops and carrying out “standover extortions” for as little as $500 in the battle for power over the state’s illegal tobacco trade, an inquiry has heard.

Victoria Police Assistant Commissioner Martin O’Brien made the shocking revelation during a parliamentary inquiry into the state’s tobacco and e-cigarette controls on Monday, saying organised crime gangs were recruiting youths to commit “serious crimes” and carry out “standover extortions” across Melbourne.

“The youth offending is particularly alarming for police as it appears that serious organised crime syndicates are recruiting already vulnerable children to commit serious crimes,” he said.

“They’re using young kids to go in and do the jobs for as little as $500 on one occasion, to commit an arson.”

Mr O’Brien was quick to point the finger at the Victorian government for the ongoing tobacco wars, saying its failures to act had helped transform the “minor underground issue” into “one of considerable heft”.

A car rammed into a tobacconist in Seville, one of the store’s targeted during the state’s illegal tobacco trade war. Picture David Crosling

He said it was “no coincidence” that the illegal tobacco and vape trade and the “serious criminal offending” linked to its black market was thriving in Victoria, noting it is the only Australian state not to have a legislated tobacco licensing scheme.

“The lack of a licensing scheme, the profitability of illicit tobacco and vape trade, the current cost of living crisis and relatively small penalties for related offending has created a perfect storm here in Victoria,” he said.

Melbourne has solidified its position as the epicentre for Australia’s illicit tobacco wars in recent months, with police recording a total of 71 arson attacks linked to the destructive tit-for-tat battle.

A fire at a Craigieburn tobacco shop. Source: TikTok/happybo14,

The assistant commissioner said if the Allan government wanted to put an end to the fiery conflict Victoria Police needed “sufficient powers” to shut down suppliers and stronger penalties needed to be rolled out to deter offenders.

He told the inquiry the trade in Victoria had become a “very easy opening to make high profit with low risk”.

“It’s not got the penalty associated with bringing in a container load of cocaine or heroin, it’s low risk, high reward,” he said.

The state government will introduce legislation to establish a wholesale licensing scheme in the second half of this year following an independent review of illegal tobacco sales from the Commission of Better Regulation.

The Premier in March said there would not be a limit on the total number of tobacco store licenses issued.

However, there could be a cap on the number of shops 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 at the time.