The recent unveiling of a new regulatory regime for tobacco in Victoria has received criticism from opposition and crossbench MPs due to the limited number of enforcers assigned to administer the new code. The government under the leadership of Premier Jacinta Allan is introducing these regulations as part of a larger strategy targeting the widespread problems associated with the illegal tobacco trade within the state.
This illicit trade has contributed to several conflicts, including an alarming number of arson attacks and resulting arrests. Since March 2023, records show more than 125 arson incidents and around 130 detentions tied to this strife. The black market for tobacco in the state is believed to be a lucrative industry manipulated by criminal rings and outlaw motorcycle gangs, with an estimated worth of around $5 billion.
Specifics of the new tobacco regulatory program were made public on a recent Wednesday. The Allan government maintains this step commences efforts to dismantle the operational frameworks of these organised criminal activities. Starting in July, firms will have the opportunity to request licenses to vend cigarettes and other tobacco commodities, with the administration of the regulatory regime commencing in February next year.
Penalties under this new regulation are quite draconian, with individuals caught distributing illegal tobacco products potentially facing fines reaching up to $355,000, or a maximum jail term of 15 years. Businesses caught in violation could be looking at fiscal penalties of up to $1.7 million. As part of the announcement, the Allan administration stressed its commitment to deploy resources effectively to disrupt infractions and to bolster the efforts of the Victoria Police in the fight against the illegal tobacco market.
However, there are concerns regarding the government’s intended implementation of this $46 million scheme, with just 14 designated inspectors. The government’s proposition is to have these regulators operating under the umbrella of Tobacco Licensing Victoria. Their responsibilities would include carrying out field surveillance and holding illicit operators accountable.
The assigned inspectors are also expected to complement the operations of Victoria Police’s Taskforce Lunar, which is specifically aimed at tackling the illegal tobacco trade. They will provide the task force with additional intelligence to streamline their work. Despite these provisions, there are critics who question the feasibility of these measures.
Opposition leader in Victoria, Brad Battin, compared the government’s plan to deploying parking inspectors to handle hardened criminals, a view that highlights the perceived inadequacy of the resources being deployed. He argued that the problem involved serious criminal activity orchestrated by biker gangs, including bombings and arson, and that deploying 14 inspectors seemed insignificant.
In his view, this approach feels as though parking officers are being entrusted with the task of confronting extensive crime and corruption in Victoria. Battin, who served as a police officer in the past, posits that Victoria’s tobacco-related issues can only be addressed sufficiently by a well-equipped and well-staffed police force.
He emphasizes the organized criminal nature of these crimes, citing numerous instances of fire-bombings statewide. According to him, tackling this not a job for someone without the right qualifications and training. He advocates for the police force to be assigned to address the issue because of their training and ability to step in promptly.
This would necessitate empowering Victoria’s police with the necessary resources to halt these criminal activities. According to Battin, Victoria Police needs to be properly equipped and reinforced to handle this significant problem. Battin’s sentiment echoes the sentiment of several critics who have questioned the adequacy of the government’s approach.
Critics argue that the government’s recent announcement lacks practicality. Victorian Libertarian MP David Limbrick drew a parallel between the decision to hire only 14 inspectors to monitor Victoria’s multi-billion-dollar industry and the approximately 300 inspectors employed in Chicago during the 1920s alcohol prohibition, despite Chicago being a smaller city.
Limbrick has stated that the government appears disconnected from the actual magnitude of organized crime and the illicit tobacco trade within the state. If they believe that 14 inspectors can suppress a commercial operation worth billions, he said, they are not being realistic.
Among those adding to the criticism is NSW Premier Chris Minns, who made a recent call to the federal government for a review of the tobacco excise, which is understood to be a key factor fueling the illicit tobacco trade. Limbrick joined Minns in his call and added that as long as the federal excise remains high, illegal activities will continue to run the industry.
The case brought forward by the critics thus highlights a number of concerns about the incoming tobacco licensing scheme. These objections are not about combating the illicit tobacco trade, for which there is broad agreement, but rather about the proposed methodology.
However the government chooses to proceed, it is clear from these diverse voices that a careful assessment of strategies and available resources will be key to achieving the twin goals of disrupting the black market trade while avoiding burdening legal businesses unnecessarily.
The post New Tobacco Regulatory Regime in Victoria Faces Criticism appeared first on Real News Now.
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