Thursday, 14 November 2024

Bills

Tobacco Amendment (Tobacco Retailer and Wholesaler Licensing Scheme) Bill 2024

Second reading

Debate resumed.

Mathew HILAKARI (Point Cook) (14:39): I am hoping that I get the full 10 minutes back, but we will see how we go. The new regulator is the Department of Justice and Community Safety – I feel like I lost a few seconds there, but I am happy to continue anyway. The main thrust of the bill is, of course, if you do not have a licence, you will not be able to sell tobacco products. That is the thrust of the bill. We have not seen a tobacco licensor in Victoria before, but we all know that it is very much needed. The importance of having a licence is there are consequences for those people who are selling tobacco illegitimately. That is the point of a licensing system, and there should be consequences.

This government is seeking, should this bill pass through this place and the upper house, to impose the toughest penalties in all of Australia – up to $1.7 million in fines and up to 15 years in jail. What does that do? It imposes on those people who are seeking to sell illicit tobacco or seeking to sell tobacco illegally, once the licensing scheme is in place, the real cost of doing business. At the moment, and as we heard in the parliamentary Public Accounts and Estimates Committee, there is a minimal cost of doing business for people who are involved in the illicit tobacco industry.

Part of the licence scheme will be to make sure that an applicant is an appropriate person to hold a licence. That is an incredibly important part of any scheme. There will be broad powers set out as to who can hold a licence, and particularly there will be consultation with the Chief Commissioner of Police. It is another important element of the scheme, because the chief of police is often in the best position with some of the best information to provide that advice on whether a person is suitable for a licence. There are matters around suspending licences, varying licences and putting conditions on licences, which are all contained in this bill. A licence will be able to be reviewed at any time, as is appropriate. A licence will be able to be suspended. For those possessing illicit tobacco, there will be up to a $23,700 fine for people and almost $120,000 for a body corporate. With the limited time that I have had, I will of course commend this bill to the house, and I hope for its speedy passage.

Eden FOSTER (Mulgrave) (15:02): I am pleased to rise today in support of the Tobacco Amendment (Tobacco Retailer and Wholesaler Licensing Scheme) Bill 2024, and I thank the Minister for Casino, Gaming and Liquor Regulation for introducing the bill. In my community in the past several months there have been a number of arson attacks on tobacco stores, which is concerning. Thankfully, no-one has been injured, but one is too many. The police and the community have been calling for increased powers, and we have acted swiftly. Unfortunately, those opposite have attempted to delay this bill despite saying there is an urgency to get on top of this. So I am a bit confused as to whether they are Arthur or Martha; they are confused as to whether they are Arthur or Martha.

Everyone deserves to feel safe, which is why we are establishing a tobacco regulator and creating the toughest and harshest penalties in Australia. This bill will be implemented in two different stages. The first stage will come into effect towards the end of the year and will involve establishing a licence scheme and establishing a regulator, allowing for the appointment and training of inspectors. The two-stage approach is very deliberate. We understand that there are many small businesses, legitimate businesses, that are doing the right thing. We are not seeking to penalise those that are doing the right thing. As a government that supports small business, this grace period allows for licence applications to be made and determined in advance of new business requirements, giving certainty to business.

The new regulator will have powers to impose conditions on those with a licence. As part of the new licences, there will be reviews of suitability to ensure licensees meet the fit and proper person criterion. The information around what specifically will be required when gaining a licence will be decided through regulations following the passage of this bill. Some of the information that will likely be required by the regulator in allowing for an assessment of the person applying is their personal details, personal history and family history, as well as whom they associate with. Police checks may also be undertaken, although it is important to note that all of this information will remain confidential and will not be disclosed to applicants or licensees. The Chief Commissioner of Police will be required to be consulted on new licences and transfer applications for the Chief Commissioner of Police’s input, which may include varying, suspending or cancelling a licence if they have information which concludes the applicant is no longer suitable. Suspensions and cancellations will occur through a show cause notice when it relates to an associate of the licensee or a licensee breaches a condition of their licence or is no longer considered to be a suitable person to run or be associated with a tobacco supply business. The regulator may immediately suspend licences for up to 90 days in response to immediate escalating risks in the tobacco industry as well as being able to disqualify a body corporate from holding a licence for up to five years.

This bill will mean you have to have a licence to sell tobacco – no ifs, no buts. It is an absolute requirement, and the penalties for not having a licence will be substantial. The new laws coming in will be the harshest in Australia and will be brought forth to align with the Commonwealth legislation and make it easier to prosecute illegal tobacco possession and supply. Currently there are differences in the penalties for illicit tobacco offences based on whether the tobacco is smuggled or an excisable good, which is very difficult for inspectors to determine and makes enforcement harder. This is why we are removing this distinction so that enforcement can be undertaken in a far more swift and efficient manner, removing those grey areas and assisting inspectors. New penalties will include fines of up to $1.7 million or possible jail time. The new penalty for possessing illicit tobacco is up to 120 penalty units for a natural person and 600 penalty units for a body corporate. The penalty for possessing a commercial quantity of illicit tobacco is up to 840 penalty units and five years jail for a natural person and 4200 penalty units for a body corporate. There will also be new supply offences, with the penalty for supplying illicit tobacco being up to 120 penalty units for a natural person and 600 penalty units for a body corporate. The penalty for supplying a commercial quantity of illicit tobacco is up to 1800 ‍penalty units and 15 years jail for a natural person and 9000 penalty units for a body corporate. It is quite detailed there.

The Allan Labor government is serious about community safety and is actually getting on with the work of governing and ensuring community safety. This bill will also create inspectors who will be on the beat, with powers to search premises, suspend licences and seize illegal items. This will also include seizure of illegal vapes. As someone who has worked with young people in a school environment, I cannot tell you how often vapes are caught on students. It is unfortunate. Students are locking themselves in bathrooms at times, vaping and setting off smoke detectors and vaping detectors, and we know that it is becoming an addiction for many young people and an inappropriate coping mechanism. As is well known, there are also many health risks associated with smoking and vaping, but this is only amplified when illegal chop-chop and vapes are being used, since they are not regulated.

Smoking is still the most significant contributor to the burden of death and diseases including cancer, stroke, cardiovascular disease and kidney disease. It also costs the economy, with Quit Victoria estimating the tangible costs are $3.7 billion and an additional $5.8 billion in intangible costs associated with the loss of life every year. That is why the new regulator will work closely with the Department of Health. Our children should be kept away from these products, and it is crucial that this black market be tackled for the health of our society and for the sake of our future generations. Just to reiterate, the Victorian government believes in the importance of keeping our community safe. We all know that under those on the other side of this place the Victorian community would be less safe. This state is safer and more secure by having the Allan Labor government in power, because we actually care about making the community safe. We want to get on with the job, and we want to deliver for the people of Victoria.

Let us not forget that the previous coalition government slashed $100 million from the Victoria Police budget and did not fund a single new police officer – not one police officer. For all the chatter about being tough on crime from those on the other side of this place, there is never any action, and it is shameful. Speaking more on police, Victoria Police will continue to be responsible for the organised crime associated with illegal tobacco. A strong relationship between the regulator and Victoria Police will be key to disrupting and dismantling organised crime networks and tackling the illicit tobacco markets. Whilst this bill has been developed, Victoria Police have been undertaking targeted action in tackling illicit tobacco. It has required a multifaceted response, and the Victorian government is providing all the tools and resources they need to disrupt and dismantle crime networks. Part of this multifaceted response includes the introduction of the regulator. While this bill has been introduced, Victoria Police have been taking targeted action through Taskforce Lunar against the illicit tobacco trade, making arrests and seizing large quantities of illicit items. Taskforce Lunar has already had success with, in the last week alone, over 600,000 illegal cigarettes being seized across 25 properties; since September 2023, over 200 search warrants being executed; and 80 offenders arrested and the seizure of cash, vapes and illegal tobacco products worth $37 million as at September 2024.

These actions were only made possible due to our strong investment in Victoria Police and the police force, investing over $4.5 million in Victoria Police. Once again the Allan Labor government is actually getting on with the job and not only talking the talk but also walking the walk. Those on the other side want to oppose change, they want to delay, but we want to keep our community safe. We believe in doing whatever it takes so that families can feel safe in their homes. I know the effects that illicit tobacco has on my community, and I want to make a difference. I commend this bill to the house.

Paul MERCURIO (Hastings) (15:12): I am happy to rise to speak on and support the Tobacco Amendment (Tobacco Retailer and Wholesaler Licensing Scheme) Bill 2024. We are seeking to amend the Tobacco Act 1987 to create a new regulatory scheme with additional powers and a new licensing regime and also to introduce the toughest penalties in Australia. Jeez, my head is all a bit aflutter with all of the debate that has gone on. I am probably going to repeat a few things that other people have said, but what I am planning on not doing is talking fiction. I am not going to say anything about fantasy; I am not going to be disingenuous. I am just going to talk about the facts, and I think that is really important. I am also not going to do any fearmongering, and that is important. We are here to talk to our communities openly, honestly and with integrity so that they know that we are here to hear them and also to help them and support them. That is what this bill is doing.

I do not have any experience in my electorate of what has been going on. I know we have all been watching the news and seeing some awful things, and I am so glad that no-one has been hurt as yet. The government and the police are working consistently – they have not stopped and they will not stop working consistently – for the public, to stop the atrocities that are going on. But I will talk about that factually a little bit more. Why this bill? Simply put, we need it. We need to stop what is going on, simply put, because we said we would. The Premier announced back in March that we would have something to address what is happening to tobacco sellers across Victoria. That is what we are doing here today. We have heard recommendations from the Public Accounts and Estimates Committee inquiry into vaping and tobacco, which was completed in August of this year. We have heard from the community, who are sick of seeing shops ramraided, burnt down and robbed. We have listened, and now we are acting on it and introducing much-needed changes.

To implement these changes effectively the bill proposes a two-stage rollout. In the first stage, which will commence by the end of the year, we will establish the licensing scheme and appoint and train the inspectors responsible for enforcement. This takes time. This will allow businesses to begin applying for licences ahead of that time, ensuring that they have the opportunity to comply with the new requirements. This is not about pushing to penalise business owners. It is about giving law-abiding businesses a fair chance to operate within the new laws and regulations. It is about giving law-abiding businesses the opportunity to have a safe workplace where they are not intimidated or fearful for their businesses and their safety and the safety of their workers.

Stage 2 introduces enforcement powers and penalties, providing licensing inspectors with the authority to issue immediate penalties for noncompliance. I will talk about that a bit more too. This includes the power to search premises, suspend licences on the spot and seize illegal items, like illegal tobacco and vapes. This phased approach is about doing what is fair, giving retailers the time they need while also equipping inspectors to act quickly against illegal operations. If we do not give them the time they need, none of this will be effective. Dedicated inspectors will be focused on tobacco enforcement, working alongside police to strengthen our ability to identify, disrupt and ultimately dismantle the networks that provide that profit from illicit tobacco. Our commitment to protecting law-abiding businesses is evident in this bill. By establishing clear licensing and suitability requirements, we are not only addressing the problem of organised crime in the tobacco industry but also levelling the playing field for legitimate businesses. Honest businesses who play by the rules should not have to compete with illegal operations that undermine their livelihoods. By introducing these licensing standards, we provide these businesses with the protection they deserve, while making it crystal clear that unlawful activity will face the harshest of consequences.

This bill introduces new offences for possessing and supplying illegal tobacco, with the amount of the fine being increased and in some cases jail time. Some of my fellow MPs and members have already talked about the penalties and the increases, and I think it is important that these are increased and are severe. This bill gives the enforcement agencies the teeth they need and the ability to use those teeth to bite the people that are doing the wrong thing. We have already talked about how big those things are.

On this idea that this government is doing nothing, I know a member on the other side – I think a shadow minister, actually – said that from today until July 2026, when they figure the bill is actually going to start working, the Allan Labor government and the Premier will be responsible for every firebombing that occurs in the next 18 months or two years. It is really a completely ludicrous idea and offensive too. The fact is this bill is like going for your drivers licence. When you want to get your licence, you have got to go through 110 hours of training. This bill is similar to that. When it can finally really bite and do the work it needs to do, people will be trained and will be able to action what they need to do. But it takes time. In the meantime, whilst that is happening, we are still working. The Labor government is still working, and the police force is still working. Furthermore, this bill’s enforcement measures are complemented by the essential work of Taskforce Lunar, which has been instrumental in the fight against illegal tobacco. Since being created, Taskforce Lunar has created over 200 search warrants, arrested 80 offenders and seized illicit items worth $37 million. I would call that doing something. That is not sitting around doing nothing, waiting for this bill to apparently start working in July 2026.

This level of enforcement is not possible without significant investment and support. Our government has allocated a record $4.5 billion to Victoria Police, funding over 3600 new officers and empowering them to form taskforces like Taskforce Lunar to target organised crime. Taskforce Lunar’s success demonstrates the critical importance of a multifaceted approach. As the Chief Commissioner of Victoria Police has said, a licensing system could ensure only fit and proper individuals operate tobacco shops, but it will not completely solve the problem. This is why Victoria’s police enforcement actions combined with the powers introduced through this bill provide the required response needed to tackle the issues from all sides. The bill also strengthens the collaboration between the regulator and Victoria Police, allowing the regulator to focus on compliance, inspections and day-to-day enforcement while police concentrate on investigating and disrupting organised criminal activity.

I would like to also highlight the bill’s provisions on protected information, which support a fair and secure licensing system. This framework allows confidential police intelligence to be shared with the regulator, ensuring that the licensing decisions are informed by the best available information. At the same time applicants are afforded the right to appeal these decisions at VCAT, upholding principles of justice while keeping sensitive information confidential.

One of the other things that I want to mention that I think is really important about this bill is it is obviously about getting cheap and illegal cigarettes off the streets. The rates of smoking are going up and health issues are going up, and it concerns me that kids have easier access to illegal tobacco. I worry very much for their health. Unfortunately, I started smoking at the age of nine. There is not much I remember. I do not remember how I got that cigarette. I probably pinched it off my mum, but I still remember the effect of the very first cigarette I had. Afterwards, with the addictive nature of that, I just wanted another one. Kids’ brains are not formed – I am not sure if mine is still yet. But this bill is about protecting children. Their brains are not formed. They are not thinking about what is right and what is healthy. They are not thinking about whether they are going to have emphysema or cancer of the throat or anything later on when they are in their 40s, 50s or 60s. They need to, but they cannot, so we need to be looking after them. Part of what this bill does is ensure that young kids – children, our children, your children and my grandchildren – will not have access to tobacco, to cigarettes and to vapes. There is a lot in this, but I commend the bill to the house.

Colin BROOKS (Bundoora – Minister for Development Victoria, Minister for Precincts, Minister for Creative Industries) (15:22): I move:

That debate be now adjourned.

Motion agreed to and debate adjourned until later this day.