Calls for the government to ‘tackle the excise tax’ on tobacco products

Key Concepts

• Illegal tobacco trade
• Tobacco excise tax
• Organized crime
• Ram raids
• Retailer safety
• Law enforcement resources
• Energy policy (Reliability, Affordability, Sustainability)
• Net zero emissions
• Protest management

Tackling the Illegal Tobacco Trade

Mary Aldridge, Liberal MP for Gippsland, argues that both federal and state Labor governments, particularly in Victoria, need to adopt a tougher stance on the escalating issue of illegal tobacco. She identifies two primary areas for intervention:

1. Tobacco Excise Tax Reduction

• Current Situation: The tobacco excise tax has increased by 282% since 2013, with a further 5% increase this year. A pack of cigarettes costing $50 has approximately $28 in tax. This price point is significantly higher than the $10-$15 cost of an illegal cigarette, rendering the tax ineffective as a deterrent.
• Proposed Solution: Aldridge advocates for reducing the excise tax to 2018-19 levels, which would bring the tax on a pack down to around $25. At a minimum, she suggests freezing the automatic, indexed increases.
• Government Stance: She criticizes Health Minister Mark Butler and other federal government figures for their reluctance to lower the excise, citing concerns that it would encourage smoking. Aldridge counters that the smoking rate has already fallen significantly and believes that making legitimate cigarettes as affordable as illegal imports would not lead to a spike in smoking.

2. Enhanced Law Enforcement and Task Force

• Problem: The proliferation of illegal smoke shops in shopping complexes and the lack of enforcement are major concerns. Local police are reportedly hesitant to conduct spot checks due to safety concerns and a lack of resources.
• Proposed Solution: Aldridge calls for a "beefed up AFP task force" to address the issue. She references a Coalition policy from the last election that proposed state-by-state stop-and-search powers.
• Organized Crime Involvement: She highlights that outlaw criminals based overseas are extorting legitimate small business owners with ransom notes, threatening to destroy their businesses if demands are not met. There are also instances of assault and theft from within Australia.
• Evidence of Scale: The Australian Taxation Office (ATO) reported stopping $6 billion worth of illegal tobacco in 2022-23, indicating the significant financial incentive for organized crime.
• Consequences for Legal Retailers: The current situation is forcing legal grocery stores and independent retailers to stop selling legal cigarettes due to concerns for staff safety and the risk of ram raids and fires. Aldridge argues that this will not reduce smoking but rather push consumers to the black market.
• Shane Patton's Insight: Former Police Commissioner Shane Patton stated that organized crime is increasingly turning to the tobacco trade because the prison sentences for tobacco smuggling are lower than for illicit drugs.

Conflicting Data on Smoking Rates

• ABS Statistics: Show a 22% decrease in smoking in the last 12 months.
• Australian Crime Intelligence Commission Wastewater Reports: Indicate that smoking rates are actually higher now than they were eight years ago. Aldridge argues this discrepancy suggests the current approach is not working and that behavioral economics, driven by price points, is a key factor.

Personal Motivation and Local Impact

• Gippsland Electorate: Aldridge's personal commitment stems from the impact on her local community in Gippsland.
• Ram Raid Incident: She cites a well-publicized ram raid attack on a friendly grocery store in Longwarry, within her electorate, as a prime example of the problem.
• Retailer Concerns: She is meeting with local retailers who are concerned about new illegal smoke shops opening, the threat of ram raids and fires, and the impact on their businesses.

Protests and Public Order

Aldridge also addresses concerns about protests, particularly those involving violence against police.

• Melbourne University Incident: She mentions evidence of protesters planning to attack police and learning how to throw bricks.
• Brad Battin's Statement: She quotes Brad Battin, who described Melbourne and Victoria as becoming the "protest capital of the world."
• University Response: Aldridge criticizes Melbourne and Sydney Universities for not acting strongly enough against anti-Semitic protests.
• Police Morale: She notes that local police in her electorate feel demoralized and undervalued.

Liberal Party Energy Policy and Net Zero

Aldridge discusses the Liberal Party's approach to energy policy and the upcoming debate on net zero emissions.

• Party Unity: She expresses confidence that the Liberal Party can reach agreement on net zero emissions at their upcoming conference.
• Energy Policy Imperatives: She outlines three key imperatives for energy policy:
  1. Reliability: Must be the top priority.
  2. Affordability: A crucial consideration.
  3. Sustainability: Also important.
• Critique of Labor's Policy: Aldridge describes Labor's energy policy as an "absolute mess" and highlights how regional communities are bearing the burden of the energy transition, citing a large battery storage project in Darnum, Gippsland, impacting prime agricultural land.
• Coalition Approach: She emphasizes the importance of strong voices within the party room and her commitment to being a "strong coalitionist," working collaboratively with colleagues.

Conclusion

Mary Aldridge advocates for a decisive and multi-faceted approach to combatting the illegal tobacco trade, focusing on reducing excise taxes and strengthening law enforcement. She also touches upon concerns regarding public order and the Liberal Party's commitment to a balanced energy policy.