NSW government agrees to parliamentary inquiry into illegal tobacco

How criminal gangs are making millions from black market sales will be investigated by a parliamentary inquiry into the illegal tobacco trade – but vapes will not be the focus. Here’s what you can expect.

How criminal gangs are making millions from black market sales will be investigated by a parliamentary inquiry into the illegal tobacco trade – but vapes will not be the focus.

The Minns government agreed to the Liberals and Nationals terms for an inquiry into illegal tobacco on Wednesday night to find out “what has gone wrong” in NSW as illicit cigarettes flood the state.

The inquiry will look into eight key issues, including the links between organised crime syndicates and tobacconists; the impact on legitimate sellers in regional areas; and how tobacconists are using ATMs and money laundering schemes to clean their profits.

Escalating incidents of crime connected to tobacconists, such as firebombings, arson attacks and intimidation, will also be investigated.

However, the listed terms of reference for the inquiry – which sets out the guidelines for what will be looked into – does not mention vapes despite their disastrous impact across the state, particularly on young people.

Hundreds of thousands of cigarettes and thousands of vapes have been seized in the last year.

Opposition health spokeswoman Kellie Sloane said disposable vapes and “other substances” will “undoubtedly” come up during the course of the inquiry, but illicit tobacco will remain the key focus.

Federal issues such as tobacco excise policy will be sidelined as well under plans to target flaws in the state’s response.

Vapes will be drawn into the inquiry during its course but have not been set out in the terms of references. Picture, John Gass

“What we need to do in NSW is operate within the scope of our state laws and that’s enforcement, that’s the health impacts, that’s small business impacts, and that’s compliance,” Ms Sloane said.

Opposition Mark Speakman also ruled out sticking with the federal Coalition’s campaign promise to regulate and tax vapes following the election loss.

Instead, Mr Speakman said the state government should crackdown on existing bans by ramping up enforcement.

“I think we should stick with the current regime and let’s see whether it works,” he said.

“If there’s proper law enforcement, you have a law and then you enforce it, and that’s what needs to be done.”

Opposition leader Mark Spearman and health spokeswoman Kellie Sloane. Picture Thomas Lisson

It comes after the number of tobacconists in NSW increased from 14,500 four years ago to more than 19,500 this year, according to NSW Health data.

While a recent investigation by big tobacco firm Philip Morris International found at least 570 retailers across NSW were selling illegal cigarettes in the last year.

Despite this explosion in the illegal trade, only 24 NSW Health department inspectors are responsible for enforcing current bans.

The opposition said a key aim for the inquiry will be to consider whether NSW should follow other states, such as South Australia, and create a dedicated enforcement task-force.

The timeline for when the inquiry will start is yet to be determined.

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Originally published as NSW government agrees to parliamentary inquiry into illegal tobacco