How Melbourne’s fiery tobacco wars have been allowed to rage

Victoria Police is begging for an end to Melbourne’s raging tobacco wars, saying state government inaction has poured fuel on the escalating crisis.

Victoria Police is begging the state government to urgently legislate a tobacco licensing scheme to stem violence, extortion and arson attacks that continue to plague the state.

The force said Victoria is the “epicentre” of the national crisis because it is the only jurisdiction that does not have such a scheme.

A wholesale and retail tobacco licence program was recommended more than two years ago, but the state government has failed to act on the advice.

Since March last year serious organised crime gangs have been involved in a turf war resulting in more than 71 firebombings.

Most targeted tobacco stores but gyms, cafes, reception centres and a vehicle repair garage were also torched.

There have been more than 71 firebombings linked to the tobacco wars since March last year.

There have also been shootings and at least one person murdered, which is suspected of being linked to the illegal trade.

MP Danny Pearson wrote to the Commissioner for Better Regulation in October 2021 requesting an independent review of Victoria’s approach to illicit tobacco.

It reported back in May 2022 recommending a licensing scheme overseen by the state government, enhanced investigation and enforcement powers and stronger penalties.

But nothing has been implemented and criminals – which police believe include Fadi Haddara and Kazem “Kaz” Hamad – are flourishing, raking in millions of dollars each week.

Premier Jacinta Allan announced in March that Victoria would get a licensing scheme by the end of the year, but sources have told the Herald Sun very little, if anything, has been done and it still hasn’t even decided who would enforce the scheme.

Police warn Victoria is the ‘epicentre’ for organised crime linked to the illicit tobacco trade. Picture: Andrew Henshaw

Martin O’Brien, Assistant Commissioner of Crime Command at Victoria Police, said in April that a licensing scheme was “crucial”.

“While arsons of tobacco stores have occurred throughout Australia, Victoria has become the epicentre for organised crime linked to the illicit tobacco trade,” he said.

“It is no coincidence that the proliferation of illicit tobacco and vapes and the serious criminal offending linked to these trades have thrived in Victoria, noting that Victoria is the only state in Australia that does not have a legislated tobacco licensing scheme.

“(It has) created a perfect storm here in Victoria, which has seen the trade move from a minor underground issue to one of considerable heft, wealth and criminal offending causing significant harm to the community.

“We believe that a tobacco retailer and wholesale licensing scheme … is a crucial step in the effort to disrupt the serious criminal offending connected to this industry.:

He added: “I do not for one minute suggest that there is a silver bullet for this and that we are going to cure organised crime in tobacco by bringing in regulation and licensing. However, I do say that having more barriers in it provides us an opportunity to disrupt organised crime and to limit their ability to be able to get into these markets, and the more that regulation and licensing provide that power and enforcement there, the less comfortable it is for them to operate.”

A tobacco shop and accountants’ office were damaged in a suspected fire bombing in Station St, Oakleigh last September. Picture: David Crosling

Police want the scheme to operate like liquor licenses where applicants have to pass a fit and proper person test.

Authorities should also be able to conduct searches without a warrant, seize products, shut down businesses and make the licence holder – or a delegate – be on the premises at all times.

Detective Superintendent Jason Kelly, of the Anti-Gangs Division at Victoria Police, said it was a “challenge” for officers to hold those operating shops to account.

“If we execute a search warrant and you have an 18-year-old sitting behind the counter who is selling the items, we may choose to prosecute that person. But really what we are interested in is the higher level, the people who are actually co-ordinating the stores,” he said.

“And out of the 1100 stores, we have identified syndicates that sit across multiple shops. One of the challenges is holding those people to account because there is no licensing scheme, it makes it very difficult.

“Unfortunately the industry will continue until that licensing scheme is brought in and appropriate compliance is added to that.”

He added: “One of the greatest frustrations for law enforcement is to go in, execute a search warrant, arrest and charge, but then the very next day it is happening again.

“The closure of stores and the removal of licences would be pivotal to success.”

An inquiry into tobacco controls is ongoing but will not present its findings until November 30.

At a hearing in late April, the commissioner of Better Regulation Victoria, Cressida Wall, said its report from May 2022 recommended “a full suite of investigative powers should be provided to officers and inspectors of the state regulator as well as police.”

MP Danny O’Brien asked: “But who is the state regulator?”

She replied: “Well, when it is established – when the government makes a decision about who would do it.”

Mr O’Brien responded: “So that decision has not been made as yet?”

“Not that I’m aware of,” she answered.

An industry expert said the lack of a licensing scheme meant police were doing their job with “one hand tied behind their back”.

“Despite repeated warnings, the government’s failure to act has led to the lawlessness playing out across the state,” he said.

“The Victorian police force, particularly Taskforce Lunar are doing a first-class job but they are having to do it with one hand tied behind their back.”

He added: “While a licensing scheme is a welcome and necessary step in helping curb the growing black market, without the adoption of tougher penalties, stronger sentencing and enforcement by a well-funded, dedicated agency the fires will keep burning unabated.”

Deputy Premier Ben Carroll on Tuesday said the government is on track to introduce a tobacco licensing scheme this year but said the legislation could still be a few months away.

“It is proceeding through all of the right channels now and it will come to cabinet and be introduced to parliament in due course,” he said.

“Across government, lots of work is occurring.”

But Mr Carroll refused to say which agency would be tasked with enforcing the scheme.

“I don’t want to pre-empt and make any announcements today except to say we are working very thoroughly with all relevant stakeholders on this including local government, Victoria Police and that will all be in the legislation when it’s announced by the Minister,” he said.