Black market tobacco shops to be hit with new licensing laws

Retailers across the state will now only be able to sell tobacco products with a licence under new laws proposed by the Minns government.

Retailers across the state will only be able to sell tobacco products with a licence under new laws proposed by the Minns government, with black market peddlers stripped of their right to sell any tobacco products if they are found to be breaking the law.

The Daily Telegraph can reveal that NSW for the first time will have a tobacco licensing scheme which will require both retailers and wholesalers of tobacco and non-tobacco smoking products to pay an annual fee to maintain their licence.

Under the scheme, any retailer caught selling illegal tobacco would have their licence stripped, preventing them from selling tobacco products legally, as well as whacking them with heftier fines.

Tobacconists who get caught selling without a licence will cop up to $220,000 in fines.

The move comes as the NSW government attempts to crack down on the state’s booming illegal tobacco industry which has seen organised crime move into the sector and the firebombing of tobacconist stores.

Retailers across the state will only be able to sell tobacco products with a licence.

The proposed legislation also doubles the maximum fines tobacco sellers can cop for doing the wrong thing.

Individuals selling tobacco products to kids would be fined up to $22,000 for a first offence and $110,000 for any subsequent offences, with corporations liable for up to $220,000.

Fines for retailers selling tobacco products not in proper packaging would also be doubled, to $110,000 from $55,000. Fines would also be increased for people impersonating or obstructing a health inspector.

Currently NSW Health inspectors enforce the rules around tobacco sales, with only 14 inspectors covering the whole state. Along with the new legislation an additional 14 enforcement officers would be recruited to enforce the laws.

Health Minister Ryan Park said the new licensing scheme would allow the government to have better oversight of the tobacco industry.

“Retailers should be put on notice that if they are caught breaking tobacco retailing laws they will be penalised,” he said.

While industry stakeholders said the licensing scheme was “a step in the right direction”, enforcement measures were still weaker than in other states.

Australian Association of Convenience Stores chief executive Theo Foukkare said the new fines were not strong enough to deter bad actors.

“It’s time to match South Australia’s tougher penalties and enforcement which start at $1 million,” he said.

“Leaving enforcement with the Department of Health is where this Bill misses the mark.”

South Australia currently has enforcement with Consumer and Business services, while Victoria is currently in the process of transferring enforcement to the Department of Justice.

Theo Foukkare, Director of Australian Association of Convenience Stores. Picture: Sam Ruttyn

Opposition Health spokeswoman Kellie Sloane will this week call for a parliamentary inquiry into illegal tobacco, which she says should investigate which department is best to enforce tobacco laws and to delve into organised crime links in NSW.

“Profits from illegal tobacco sales are lining the pockets of criminals, with the growing trade

estimated to be worth billions in Australia,” she said.

“This inquiry will give parliament the opportunity to hear from experts, small businesses, health professionals and law enforcement to ensure we have the right legislation in NSW to crack down on this illegal trade.”

Originally published as Black market tobacco shops to be hit with new licensing laws