Shayne Neumann (Blair, Australian Labor Party) Share this | Hansard source

Engaging in the illicit tobacco trade is a very serious offence, and it deprives the Australian community of the kind of funding that we need for our hospitals, schools, infrastructure and essential community services. Tobacco is illicit when it's grown, manufactured or produced in Australia without an appropriate export licence, even if that tobacco is intended for personal use, or when it's imported into the domestic market without customs duty being paid. It's illegal to grow tobacco in Australia without the appropriate excise licence, and in Australia there have been no licensed tobacco growers since 2006 or manufacturers since 2015.

The illicit tobacco market has been a growing concern for law enforcement around the world. It's a key concern here in Australia and also for health agencies. It undermines tobacco control policies designed to reduce levels of smoking, and it involves organised criminal gangs, as the member for Wide Bay said so eloquently, who are involved in the importation, manufacture and distribution of illicit tobacco products. The WHO Framework Convention on Tobacco Control was the first global health treaty developed in response to the tobacco epidemic. It's an evidence based treaty that reaffirms the right of all people to the highest standard of health. The convention came into force in February 2005, and it has 181 signatories, including Australia.

There are generally two types of illicit tobacco products produced: loose-leaf tobacco and pre-rolled cigarettes. The first type is often called chop-chop, or molasses tobacco, and the second is counterfeit tobacco or contraband tobacco. This is so prevalent in Australia. There is no level at which tobacco consumption could be considered healthy in this country. I applaud the sentiment of the motion and the seriousness with which people on both sides have taken to the issue today. The reality is that we've had to play catch-up, and that's the truth of the matter. For our part, the government have put in place a range of strong measures and serious resources to address the problem.

This is a trade engaged in by organised criminals across the country, and it's growing very rapidly. Organised criminals are ignoring the law and opening shops that sell these products without fear of prosecution, and that's happening all too often. This is undercutting legitimate businesses, and many have come to see me. I've met retailers in my electorate who are concerned about the impact of the illicit trade on their business.

The Albanese government is ramping up compliance to address illicit tobacco and work with the relevant agencies. In January we announced a major Australian Border Force crackdown on the importation of illegal tobacco to ensure we put a tough cop on the beat, and there was a massive increase of $188.5 million over four years to deliver a new compliance model in partnership with the states and territories. Under this new national approach, the ABF will lead Commonwealth, state and territory organisations in a coordinated effort. This is a strengthened package. When we were in opposition we did support the previous government's creation of the Illicit Tobacco Taskforce, in July 2018, and the motion acknowledges that. It's all about deterring illegal tobacco use and distribution and sending a clear message to crooks and syndicates that dealing in illegal tobacco is a serious offence involving a serious tax crime, and people should be aware of that. There are long periods in jail and high penalty units.

This new model strengthens our existing efforts by working in partnership with the states and territories, and I want to assure the member for Cowper that we will work across jurisdictions in this space. In my home state of Queensland we've introduced a licensed scheme for the sale of tobacco, and it makes it an offence to supply illicit tobacco or for retailers to even store illicit tobacco, including with severe penalties for doing so. Of course it's not just a budgetary problem; it's a health challenge and a challenge to our border security. It's estimated that, every day, about 50 people die in Australia of a smoking-related illness.

We have to reduce the availability of illicit tobacco, and that's critical to tobacco control. We know that the main driver involves criminal activity, but we need to engage in a health response, and that's why the things that we did when Nicola Roxon was the health minister, like plain packaging and education programs, were so critical. Increased investment in health to get people away from the scourge and addiction of tobacco was so important. It's about enforcement on the one hand and a health response on the other. That's why the Albanese Labor government is so committed. We need to work together across parties and jurisdictions in this space. We need to make sure the ABF have the ability to stop illicit tobacco at the borders and before it ever reaches our shores, our air or our seaports. We need to stamp it out with criminal prosecution at the state and federal levels to the best of our ability.

See this speech in context