Illicit tobacco shops ‘outsmarting’ authorities, as new laws set to allow for 28-day shutdowns

Shops hawking illegal cigarettes and vapes are “outsmarting” authorities, state parliament has been told.

Illicit tobacco traders are “outsmarting” authorities by selling illegal products on weekends or after 5pm on weekdays – when they know compliance officers are off-duty – while shopkeepers are being tipped off about likely upcoming raids, state parliament has been told.

It comes as stores selling illegal cigarettes and vapes could soon be forced to close indefinitely in rolling 28-day intervals – while a magistrate could order 12-month closures – under new laws introduced into parliament on Thursday.

Independent MLC Frank Pangallo told the Upper House some illicit traders were “outsmarting” Consumer and Business Affairs officials, who are responsible for regulating the tobacco industry.

“I have recently been informed these outlets know that CBS officials do not work after 5pm or on weekends,” he said.

“They also know the raids or visits are conducted by relatively junior CBS officers without any of the powers that SAPOL has.

“They also get tip off of where and when CBS are active and take steps to avoid detection.”

Independent MLC Frank Pangallo.

Consumer and Business Services Minister Andrea Michaels denies this claim.

“Mr Pangallo’s claims including that CBS officials do not work after 5pm or on weekends are false,” Ms Michaels said.

“The Malinauskas Government has invested $16m into a dedicated CBS taskforce which is working hard around the clock and right across the state in partnership with SAPOL and other agencies to shut down the illicit tobacco market in South Australia.

“We have the harshest penalties of any state or territory in the nation and we will continue to crack down and put these criminals out of business.”

Mr Pangallo also said he held “grave concerns abut the ability of the Consumer and Business Services portfolio to police and enforce (illicit tobacco) laws, including the current bill”.

“If, like I have, you have tried to get CBS onto an issue or a case as a matter of urgency, you will often get the response, as shocking as it is, that they do not have sufficient resources to deal with the problem,” he said.

Mr Pangallo introduced amendments to illegal tobacco legislation on Thursday that would empower the Consumer and Business Services Minister to shut down stores that were, or were likely to be, unlawfully selling or supplying tobacco or vape products for 28 days.

The mooted legislation would also allow the Minister to apply to a magistrate to 12-month closures of shops selling or suspected of selling illicit tobacco products.

The amendments passed the Upper House on Thursday. They will now need to be considered by the lower house, however the State Government has already flagged it will support the amendments.

The amendments build on laws that came into effect late last year which gave the Minister the authority to shut down shops for 72-housr and apply to a magistrate to impose a six-month closures.

However, Mr Pangallo said those laws were failing to deter illicit trades, who simply reopen and continue illegal trading unperturbed after the three-day closures.

He has initially intended to push 60-day closures however he amended his proposal after discussions with the government.

Consumer and Business Affairs Minister Andrea Michaels. Picture: Keryn Stevens.

Ms Michaels confirmed the government would support Mr Pangallo’s 28-day and 12-month closure amendments.

“The government will continue to work with the crossbench as we assess the ongoing effectiveness of these laws and will undertake further reform if necessary to ensure we are cracking down on these illicit tobacco stores,” she said.

So far, 28 stores believed to be selling illegal tobacco products have been shut down for 72-hour periods, with seven closures occurring in recent days, and one shop has been closed for six months.

The Advertiser on Saturday reported illegal tobacco shops were raking in up to $1.3m a month selling illicit cigarettes and vapes.

Meanwhile, organised crime syndicates, who supply the shops, are believed to be pocketing several million a month off the underground market.

The huge revenues have been fuelling South Australia’s illicit tobacco war, which has been raging in the state since mid-last year.

Originally published as Illicit tobacco shops ‘outsmarting’ authorities, as new laws set to allow for 28-day shutdowns