‘You have to learn by our mistakes’: Warning from Australia over black market tobacco

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Source: Radio New Zealand

A seasoned Australian homicide detective says New Zealand can soften the blow of fire bombed shops and violent organised crime seen in Australia, if black market tobacco is stamped out now.

An RNZ investigation last month found black market cigarettes were being openly sold in Auckland shops at huge discounts.

Now, Retail NZ has released a report calling for the establishment of a taskforce to stop the illegal sale of tobacco, which it says is putting communities at risk.

It said the situation across the ditch was a stark warning of how a booming black market can undermine decades of public health progress and trigger a rise in violent crime.

Illicit tobacco accounts for an estimated 50 to 60 percent of the Australian market share, according to statistics cited by Retail NZ.

Retired Australian homicide detective Charlie Bezzina said the genie was out of the bottle over the Tasman sea.

“Given the fact that we’ve let this ferment, and it’s fermented, it’s grown, it’s spread, it’s like a cancer, and then to try and then start implementing resources is quite difficult,” he said.

“If it’s in its infancy in New Zealand, you have to learn by our mistakes.”

Bezzina said New Zealand law enforcement should speak with Australian law enforcement, who possessed a wealth of information on the issue.

He said Victoria’s state government had been slow to respond to the organised crime element.

“They’ve got no powers to shut down shops, they’ve got no powers to address the landlords who are happy to put illicit people into their premises … so we are losing the battle there.”

Dr James Martin is an associate criminology professor at Melbourne’s Deakin University. He said illicit nicotine was now worth more to organised crime groups than cocaine, cannabis, heroin, and ecstasy … combined.

“We’ve seen really a nationwide crime wave,” he said.

There had been over 280 arson attacks on both legal and illicit nicotine retailers, he said.

“There have been multiple homicides, kidnappings, torture, and what government has described as countless instances of intimidation and extortion of the retail sector.”

Martin New Zealand’s efforts to move smokers onto vapes has helped reduce smoking rates.

“More than 95 percent of the vaping products sold in Australia are now illicit as well,” he said.

“That’s a critical harm reduction difference in policy that I think has been much better implemented in New Zealand, and this is helping prevent some of the worst effects that we’re seeing here.”

He was not surprised to seeing the illicit trade in New Zealand.

“Australia has the number one highest tobacco taxes in the world, and New Zealand is number two, so it’s not surprising to see, even though your tobacco trade is much diminished now because of the success of your vaping policy, it’s not surprising to see some of the similar dynamics taking place albeit on a smaller kind of scale.”

Retail NZ’s chief executive Carolyn Young told RNZ a multi-agency taskforce should be set up, made up of police, Customs and health professionals.

Retail NZ’s chief executive Carolyn Young. Supplied

Chief customs officer for fraud and prohibition Nigel Barnes said they were continually investing in intelligence and targeting measures to adapt to organised crime groups, but he would not be drawn on a potential task force.

“Customs has long regarded illicit tobacco smuggling as a transnational organised crime issue, and these networks are vast,” Barnes said.

“I won’t speculate on the suggestion of a taskforce but what we do know is that it takes a network to defeat a network, and we have been working with our partners, domestically and internationally, to that end.”

They did not want what was happening in Australia to make its way over here, Barnes said.

“The Australian market is something that we definitely want to avoid, and it’s been mentioned before, is that we don’t want to end up in that situation,” he said.

“If we do everything within our power then we would hopefully would be able to avoid that.”

Last month, RNZ visited an east Auckland store selling cigarettes for less than half the amount of excise required by law to be paid.

Those caught selling illicit cigarettes, could face a six-month prison sentence, a $20,000 fine or both.

Importing cigarettes without paying the excise duty is illegal under Customs law.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

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