Federal Member for Cowper Pat Conaghan is calling on the Albanese Government to ‘get real’ when it comes to the effective control of illicit tobacco and vapes and is asking the Minns Government to wave the $1100 Tobacco Licensing Fee until the scourge of illicit tobacco and vape stores has been addressed.
In recent weeks, the Mid North Coast MP has visited a number of legal outlets crying out for assistance in removing illegal players from the market.
“On almost every high street right across the Mid North Coast is an illicit tobacco and vape store trading in plain sight. And while it has been great to see the spate of temporary closures over the past few months as a result of dedicated police action, with the closure periods now elapsed, these shops are right back up and running with absolutely no care of future repercussions. I went into one today that had boxes openly stacked against the wall, not even attempting to hide them! And I know this is happening right across the country.
“To add insult to injury, the stores that are trading cigarettes legally are currently paying $1100 a year in NSW licensing fees for the privilege, while simultaneously watching hundreds of thousands of dollars walk out their doors and into neighbouring illegal enterprises.
“At a Federal level, the Albanese Government needs to get real about this and start attacking the issue from all fronts. As a former Drug Squad Detective, I can tell you now that a press release and finger wags from the Canberra bubble isn’t scaring anyone!
“Firstly, drop the tax that has created this market to a more reasonable level. If a legal product costs up to five times more than an illicit one, then you’re just handing customers to criminal syndicates. Simultaneously, the Federal Government must work with state and territory Governments to enact universal and easily enforceable mandatory sentences to those caught selling or distributing product. This should include landlords. If criminal syndicates can’t rent the shops, they can’t sell out of them. And if staff are faced with a choice between a quick buck and jail time, they might think twice about manning a storefront.
“I’ve heard reports of a single illegal premises clearing thirty grand a day. When you are clearing sums like that, a little closure period really isn’t going to deter you from opening back up again, is it? Without serious personal repercussions, there’s no real downside.
“And yet legal businesses are slugged with licensing fees, display standards and stringent regulations that are enforced by fines. They are literally the ones to get punished while others are flagrantly trading illegally. Small businesses are already doing it tough with rampant input cost increases like energy, fuel and labour costs, in addition to seemingly never-ending red tape, increasingly cumbersome IR laws and tax upon tax. They deserve a break and some recognition that systematic government failures have forced revenue out of their stores and into the hands of criminal gangs. So Minns; I ask you to get rid of the $1100 fee today. And Albanese; get the necessary legislation onto Parliamentary floors in Canberra and across the country to ensure that these stores are closed down for good.”
