Retail workers forced to flee to ‘safe rooms’ as Australia’s illicit tobacco crisis takes hold

Retail workers have been forced to retreat from increasing violence and aggression from customers as Australia’s illicit tobacco crisis takes hold in the community, a parliamentary inquiry has been told. Members of the industry groups for convenience stores and grocers on Monday fronted a Senate inquiry into the country’s growing illicit tobacco trade, which is costing the federal government $5.4bn in lost tax revenue, according to this year’s budget papers. Australian Association of Convenience Stores chief executive Theo Foukkare said there had been instances of retail workers fleeing to a back room of their store to escape threats of violence from customers, causing significant distress. “We’ve had instances (where) some retailers in bad areas are setting up safe rooms, they’re converting their back office into a room where the staff can escape to should they be attacked,” Mr Foukkare told the inquiry. “Retailers are doing everything they can to protect their people but also their products. “It’s really just about making sure the staff are going to be OK to go home to their families.” Master Grocers Australia chief executive Martin Sterling told the inquiry that customers were becoming frustrated at the increased cost of tobacco in stores compared with illegally traded tobacco, and that had led to aggression towards retail workers. “The price of illicit tobacco has now been normalised. There is a normalised baseline of about $10 per pack (of cigarettes),” he said. “When customers complete their grocery shop at an independent supermarket and perhaps want to purchase some tobacco, they become irate when they’re told (the price) will be $50 or $60. “That then leads to aggression and it leads to incredibly dangerous and uncomfortable situations, especially for young retail workers who might be confronting that kind of aggression for the first time in their lives.” Earlier on Monday, the Australian Federal Police (AFP) and the Australian Criminal Intelligence Commission (ACIC) told the inquiry the black market had sparked violence between organised crime gangs that has spilt onto the streets, claiming three lives as a result. ACIC deputy chief executive officer of intelligence Adam Meyer said the figure as “very concerning”. “We’ve seen a range of violent activities, whether it be violence against individuals or over 200 arson attacks that we’ve seen at tobacconists and a range of other facilities, which is largely linked to inter-group violence,” Mr Meyer said. “Various groups (have been) trying to take greater control of the illicit tobacco market themselves, and that violence has unfortunately spilt into the community.” Mr Meyer added the black market had a high level of profitability and “lower barriers for entry” into criminal activities. “It’s easier for actors to become involved. The penalties against them are generally lower for other illicit commodities, drugs in particular,” Mr Meyer said. “It’s often co-mingled with a range of other organised criminality … whether it be drugs or money laundering or a range of other activities. They also see it as a way of building up other criminal enterprise within their business model.” During the inquiry, Tasmanian senator Richard Colbeck pressed AFP Deputy Commissioner Hilda Serec on whether the AFP was monitoring shipments of illicit tobacco through Australia Post and other private parcel carriers. Senator Colbeck added that Australia Post did not require a declaration on the contents of domestic parcels – a measure he said left the carrier “terribly exposed” to the trade. Ms Serec said the AFP would work closely with freight carriers and other partner agencies. “There has been some engagement with Australia Post … and we will consider anything that frustrates criminality,” she said. The Albanese government said in the May 12 budget it would provide $20.3m over four years to combat illicit tobacco, including $14m of additional funding to boost state and territory compliance and enforcement capabilities. The NSW government has introduced a range of measures to crack down on illicit tobacco sales, including bolstering powers for health officials to shutter stores and tougher enforcement, while other jurisdictions, including Queensland, Victoria, and the ACT, have made similar moves.