Smokes minister admits high excise makes crackdown 'challenging'

THE man in charge of Victoria’s crackdown on the state’s illicit tobacco shops, Minister Enver Erdogan, acknowledged on a visit to Wonthaggi this week that he’s battling against organised crime with two hands tied behind his back.

Whilst being highly complimentary of the work police and the Tobacco Licensing Victoria taskforce are doing in closing more than 100 stores and making more than 200 arrests, two “fundamental issues” in the Commonwealth Government’s domain were making it incredibly challenging - the excise on tobacco and the illegal importation.

Speaking to the Sentinel-Times he said that while the incentive of the price differential remained and the sheer volume of illicit tobacco continued to find its way into the country, the states were fighting a losing battle.

“So, we need to work closely with the Commonwealth. I think we know Premier Minns has been upfront about the price differential being the biggest factor,” said the Victorian Minister for Casino, Gaming and Liquor Regulation.

“Also, the fact that record quantities are entering our country in the first place,” he said.

“We've closed over 100 stores now already in just a few weeks. I'll continue to do more work, but fundamentally, we need to look at the other factors that are those levers that sit with the Commonwealth.”

The Sentinel-Times put it to Minister Erdogan that with between 1000 and 1600 illicit tobacco stores in Victoria, it would take upwards of two years to close them all, even temporarily.

Why don't you just activate the police and close them all in one hit?

“I think the police have made over 200 arrests, so, I think we've got to set that record straight. They've done a fantastic job, but we know that in New South Wales they've closed hundreds of stores as well, and they've still proliferated.

“Whilst those factors remain, that is the incentive from the price differential, and the record amounts entering into our country in the first place, I think we'll continue to have challenges.

“We need to be honest and work with the Commonwealth for a national approach. I know the Commonwealth has now stepped up to the table, and I want to thank Minister Burke, but we also need to look at Treasury as well, about those settings and greater support for our state.

“We set up the first-ever regulator. We didn't even have a regulator in Victoria.

“We've done that over the last two years, and over 100 store closures in only a few weeks.

“We'll continue to do that, but ultimately, when the price differential continues to exist, there'll be challenges, and we've seen that nationwide.

“So, we need to be working closely with the Commonwealth.”

Meanwhile, little more than 500 metres from where the Minister was standing, outside the Bass Coast secondary college in Wonthaggi, the illicit tobacco trade was flourishing, and continues to do so across Bass Coast, South Gippsland and regional Victoria where there have only been 12 closure orders issued, outside the Melbourne and Geelong metro areas.

Since the so-called crackdown started on September 9, the government’s taskforce has closed down fewer than 15 shops-a-week, and only one in either of the Bass Coast or South Gippsland LGAs, at Mirboo North.

Minister Tony Burke’s office has been contacted for comment.