True cost of Melbourne's fiery tobacco warfare

The damage bill for Melbourne’s tobacco turf wars is at least $10m – and it’s quickly rising, as the real cost of the destructive rampage is tallied up.

The damage bill for Melbourne’s fiery tobacco warfare has been estimated to be more than $10m.

And there are concerns from other business sectors about the potential financial risk of operating close to those involved in the illicit smoke trade.

Much of the huge cost of the destructive rampage since March last year is made up by about 20 tobacco stores set alight since last March.

In many of those incidents, one or more vehicles were also set alight by those involved.

In recent months, a broader and even more costly range of business targets has been hit.

Two Docklands restaurants burned in quick succession late last year.

Lebanese restaurant Almina was firebombed in December. Picture: Mark Stewart

The first was the Karizma venue, owned by western suburbs organised crime figure Fadi Haddara, where two men smashed windows and poured fuel around before setting it alight in November.

In December, the nearby Almina restaurant was also firebombed by arsonists.

Earlier this month, the Capriccio ice creamery in Williamstown was torched in a late-night attack which came days after a gym in Truganina suffered the same fate.

There have also been arson incidents at another gym and a cafe.

A Williamstown panel shop and several cars were also wrecked by fire in October last year.

These incidents are under investigation by the Lunar taskforce, which was set up three months ago as tobacco shops continued to go up in flames.

One tobacco industry source said the total damage bill would be in the vicinity of $10m.

“At least,” he said.

Victoria Police Detective Inspector Graham Banks said on the weekend that he expected action to be taken by those insuring or subletting tobacco businesses.

“When you’ve got shopping centre owners that are aware that they’ve got a store that’s selling illicit products, I’d expect them to make an inquiry and look into the leasehold,” he said.

“I expect agencies such as insurance councils to have a view about insuring premises that are selling only illicit products.”

Meanwhile, small businesses operating next door to Melbourne’s tobacco stores are becoming increasingly worried about their safety and fear insurers will jack up premiums to cover the risks.

A convenience and tobacco store in Hadfield was firebombed twice. Picture: David Crosling

More than a dozen retailers, particularly local newsagents, have expressed concern over the widespread arsons which often put uninvolved neighbouring businesses in the firing line.

One senior newsagency industry figure said he expected insurance companies to raise the cost of premiums for businesses operating near tobacco and vape stores to cover the added risk.

He says the retailers are “nervous” as there is a “specific risk” posed to those who often share a roof with the tobacco stores.

A spokesman for the Insurance Council of Australia said it had not been approached about tobacco shop fires in Melbourne and declined to comment on implications for premiums.

Last week, law firm Local Lawyers suffered smoke damage after the business beneath if, Wolf Cafe & Eatery, was targeted by arsonists in Altona North.

In October, an accounting firm operating next to a tobacco shop on Station St in Oakleigh was set alight as offenders torched both businesses operating under the same building.

A cafe next door to the West St smoke shop in Hadfield was also forced to turn customers away after it suffered minor damage as a result of the tobacco shop next door being torched in August.

And several residential properties in Craigieburn were also damaged when a tobacco shop was set alight in the early hours of January 14.