Illicit tobacco
David LIMBRICK (South-Eastern Metropolitan) (12:10): (1495) My question is for the Minister for Casino, Gaming and Liquor Regulation. The government’s tobacco licensing scheme revolves around licences and shutdown orders for physical stores, but as was alluded to by the minister I think yesterday, it would appear that organised crime is already one step ahead of the government and is shifting its distribution model. I have previously made light of the fact that only metres from Parliament you can buy illegal tobacco and vapes. That is no longer the case, and it is not because the government has shut the stores down. My question to the minister is this: is it not the case that the government is not actually stopping illegal tobacco distribution in Victoria, because organised crime has already shifted to an online model?
Enver ERDOGAN (Northern Metropolitan – Minister for Finance, Minister for Casino, Gaming and Liquor Regulation, Minister for Government Services) (12:11): I thank Mr Limbrick for his question and his longstanding interest in this matter. It is clear that the goal of government is to make it harder to sell and to profit from – and easier to shut down these illegal operators that are selling – these illicit products and dangerous products on our streets. That is why we have set up the first-ever tobacco regulator in the state’s history, and that is why we have made record arrests in relation to tobacco crime through Victoria Police and federal agencies.
Mr Limbrick does point out that with this issue there are multiple factors for the growth of this sector, which we have talked about before – whether it be the price differential, the federal tax settings, or whether it be the fact that record volumes are entering into our country in the first place. Some of these issues cross jurisdictions and cross borders. There is a concern that with such tough local enforcement – many stores are being closed down across our city as we speak – they may shift their model, and some of those models shift to areas that will be more difficult for the Victorian jurisdiction or state and territory jurisdictions to take action on. Especially when we are talking about models that involve the internet, we know that communication is a federal responsibility, and that does pose different challenges for state legislature and the state government. Nonetheless we will continue to coordinate with the Commonwealth on an approach to take action. As the business model will change because we are closing down more stores, we will see that we will need to change the way we operate. This is constantly catching up, but the underlying causes are there for everyone to see. There are multiple factors, but from a state perspective we will continue to work with the Commonwealth to see greater action in this area.
Enver ERDOGAN (Northern Metropolitan – Minister for Finance, Minister for Casino, Gaming and Liquor Regulation, Minister for Government Services) (12:13): The sale or production of this illicit product is illegal in our state, so Victoria Police can make arrests. But more importantly, there is a federal approach, a national approach, that is needed, because a lot of it is cross-jurisdictional. A lot of it is international organised crime, and therefore we need to work together with federal agencies. I know Victoria Police and Tobacco Licensing Victoria are part of a national disruption group that involves the federal police and customs. We need to continue that approach to make sure that it is stopped at the border, that it is stopped wherever it is occurring and that those people that are responsible are brought to justice.