Allan govt rejects proposed tobacco licensing scheme

The boss of a major grocery chain has slammed the Allan government for voting down a Coalition bill aimed at tackling the state’s out-of-control tobacco wars, saying retailers were “being harmed” by the inaction.

The boss of a major grocery chain has slammed the voting down of a Coalition bill aimed at tackling the state’s illicit tobacco scourge.

In state parliament on Tuesday, the Allan government rejected the proposed tobacco licensing scheme, under which fines of up to $1m could be imposed for breaches.

The huge penalties were put forward in a private member’s bill aimed at ending the organised crime warfare over the illegal sector, which is linked to more than 100 arson attacks in Victoria.

The Coalition said it was fed up with the inaction of the Labor government and would introduce a private member’s bill on Tuesday detailing its tobacco licensing scheme.

Anyone wanting to sell tobacco would first need to pass a fit and proper person test, similar to when applying for a liquor licence.

Under the proposed bill all wholesale and retail tobacco stores would need a licence to operate and Victoria Police would receive beefed-up powers to raid businesses and seize illegal products.

Criminals caught selling illicit tobacco would be fined up to 5000 penalty points – equivalent to almost $1m – while repeat offenders could receive up to two years behind bars.

Police would receive beefed up powers to raid businesses and seize illegal tobacco products under the scheme.

Fred Harrison, the chief executive of Ritchie’s IGA, said Victoria was the only state in Australia without a tobacco licensing regime.

“It’s disappointing that Labor thinks this is a stunt when good people and honest retailers are being harmed by their lack of action,” Mr Harrison said.

“Victoria had over 115 firebombings and has seen every other eastern seaboard state take this issue seriously and introduce proper legislation against the black market.”

Opposition consumer affairs spokesman Tim McCurdy slammed the decision as “bitterly disappointing”, accusing the government of treating the public with contempt.

“This was very much a wasted opportunity. It’s time to put an end to the chaos and violence,” Mr McCurdy said.

“How much longer do Victorians have to wait? We took a significant step towards an effective licensing system to protect our communities and put a stop to this violence.

“Labor can’t manage crime and Victorians are paying the price.”

The Allan government said it wouldn’t rule out slapping criminals with $1m fines if they were caught selling illegal tobacco.

Casino, Gaming and Liquor Regulation Minister Melissa Horne on Tuesday said the government’s tobacco licensing scheme remained on track to be introduced into parliament before the end of the year.

Criminals caught selling illicit tobacco will be fined up to $1m for a first offence in a bold plan proposed by the state opposition. Picture: NewsWire / Valeriu Campan

Ms Horne – who maintained she hadn’t been consulted by the Coalition about the contents of their private Members Bill – refused to say what could be included in the government’s legislation.

“This is really complicated. We’re dealing with large organised crime,” she said.

“We need to design a system from the start and that is incredibly complicated.

“It is big work that we need to do.”

Police Minister Anthony Carbines said Victoria Police officers would not be responsible for overseeing the scheme.

“There will be an authorised officer role because Victoria Police aren’t about running around chasing down every retailer selling individual cigarettes to underage people,” he said.

“Their focus is organised crime.”

The punishment for selling illicit tobacco in Victoria is $47,421 (240 penalty points) for an individual and $237,109 (1200 penalty points) for a body corporate.

A report by Better Regulation Victoria recommended the Labor government introduce a tobacco licensing scheme in May 2022.

A tobacco shop in Altona was fire bombed twice in as many days. Picture: David Crosling

But nothing has been done and serious organised crime gang figures such as Fadi Haddara,Kazem ‘Kaz’ Hamad, brothers Dib and Hassan Barakat and Sam Abdulrahim have been allowed to flourish, raking in millions of dollars each week.

Shops, gyms, cafes, reception centres and garages have all been torched in a fight for control of the lucrative illicit tobacco market.

Premier Jacinta Allan said in March that tobacco licensing legislation would be introduced by the end of the year but no details have been released since.

Industry and retailers have also not been consulted.

Victoria is the only state or territory in Australia without any kind of registration or licensing scheme in place.

The price of a legal packet of cigarettes is about $50-60, while illicit tobacco is less than half the price.

Victoria Police estimates there are 1100 illicit tobacco shops across the state.