Funding fight over tobacco wars: States argue they are ‘left to clean up the mess’

The Victorian, Queensland and New South Wales governments are vowing not to back down in their push for extra federal funding to tackle the tobacco wars.

Pressure is mounting on the Albanese government to bolster efforts to tackle the tobacco wars, with east coast states claiming they’re being left to “clean up this mess”.

It is understood that Victoria, NSW and Queensland “will not back down” and will form a “behind-the-scenes pact” to demand extra funding for enforcement, but will not yet speak out publicly.

NSW Health Minister Ryan Park raised the illicit tobacco issue during a meeting of health ministers this month. But the concerns were absent from the official communique.

States say they are left to clean up the mess of the tobacco wars. Picture: Andrew Henshaw

One source said there was “clear frustration in the room” over the growing problem.

“States were pushing back – they were explaining ‘we’re getting nothing, when are you going to help’,” the source said.

“We’re (the states) are being left to clean up this mess – someone else’s mess.”

Queensland Health Minister Tim Nicholls said: “The commonwealth government should be pulling every appropriate lever to stop illicit products from getting into the country in the first place”.

There is clear frustration at the growing problem of the tobacco wars.

“While we’re making significant inroads into tackling this black market, the size and scale of the problem remains immense,” Mr Nicholls said.

“Queensland’s public health officers are at the ‘end of the conveyor belt’ of this problem, taking enforcement action against the illegal sale of illicit goods already smuggled into the country.”

Further discussions are expected between the commonwealth and states about how to crack down on illicit tobacco.

Experts and economists have criticised the tobacco excise for fuelling black market sales.

The size and scale of the illegal tobacco problem is ‘immense’, Queensland Health Minister Tim Nicholls says. Picture: David Smith

NSW Premier Chris Minns earlier this month joining calls for the commonwealth to consider lowering the tax.

But the federal government at the meeting “made it clear it was not supportive of a reduction or even a freeze”, according to the source.

“Ultimately the excise is a matter for the commonwealth and it’s a question for them to look at the rise of illicit tobacco and the link to the tobacco excise,” a Victorian government spokeswoman said.

“Our tough new tobacco licensing scheme will start next month – backing the work of Victoria Police who are coming after crime lords,” the spokeswoman said.

Interim Illicit Tobacco and E-Cigarette Commissioner Erin Dale will not be kept on in the role and a process to find her replacement is under way.

Health Minister Mark Butler did not respond when asked why illicit tobacco was not mentioned in the communique, and if the government would boost measures to address the tobacco wars.

Mr Park was contacted for comment.

Originally published as Funding fight over tobacco wars: States argue they are ‘left to clean up the mess’