City of Sydney Urges Crackdown On Law-Breaking Vape Shops

Illegally-operating vape shops have become a common blot on high streets – and the City of Sydney is calling on the state government to take action.

At a council meeting on Monday 22 September, two motions calling for a tougher stance were passed unanimously. One was tabled by Liberal councillor Lyndon Gannon, and the other by independent Yvonne Weldon.

The motions endorsed recent legislation imposing harsh penalties on businesses selling illicit tobacco and e-cigarettes, including fines of up to $1.5 million and imprisonment for up to seven years. Councillors called for a “compliance blitz” in which the police would target illegally operating businesses.

Gannon said it was “an indictment on our high streets” that there are 13 tobacconists in Kings Cross alone.

“There’s not a single butcher shop in Kings Cross. There’s not a fruit and veg shop outside of the supermarkets. There’s no fishmonger because they’re all being priced out of our high streets, which is a massive shame.”

Weldon echoed this sentiment. “The retail sale of vapes has been prohibited for over a year, but walking around our streets, you wouldn’t know it,” she told councillors.

Local governments “powerless” against illegal stores

Later, Weldon commented that the proliferation of vape shops is “choking” local streets. She cautiously welcomed the latest reform. 

“The new regulations and penalties are a critical step. But the legislation isn’t worth the paper it’s printed on without real enforcement. I’m calling for a coordinated response from the New South Wales Government. Rather than point fingers, NSW Health and the police must start working together.”

“Local governments are powerless to stop the spread of these stores, even when local communities clearly oppose them.”

She called on the Government to cap the number of tobacco licences which can be issued in an area, “or establish a minimum distance between licensed sellers.”

“At the very least, we should restrict these stores close to schools, childcare centres, playgrounds and medical facilities. We’d never allow bottle shops to open on every corner. But when it comes to tobacco, it’s open slather.”

Organised crime is “competing” with local retailers

Gannon noted to the City Hub that organised crime is “competing with genuine retail operators.”

“It’s not just Kings Cross – these shops are a rash on our whole city.”

“It’s peak Sydney – you can’t get a meal past 9pm, but you can get illegal smokes anytime on our high streets.” He said that law-breaking tobacconists are a national problem, too. 

“Let’s wait and see if the Premier takes up my request for a compliance blitz. I mean, how hard can it be for the Government to actually enforce the law?”

Inner West Council supports reform

Kings Cross is unique in how closely packed tobacconists are, with several just metres away from the railway station. However, many may also be found in parts of the Inner West, some of which are similarly law-breaking.

Inner West Greens councillor Liz Atkins represents the Stanmore (Damun) ward. Atkins said that the “proliferation of these shops is definitely concerning, especially when they pop up near schools or with signs that are intended to target young people.”

“What we need are good laws to regulate their signage and location. Council can act to deal with inappropriate signage, such as references to cartoon characters as they have done in Stanmore and Marrickville.”

However, tobacconists are defined as shops under the Inner West Local Environment Plan. As a result, “they can generally operate without planning approval as exempt development.”

“Council has already passed unanimous resolutions calling on the state government to make regulations to mandate that tobacco stores require approval through a development application. I think these powers are more important than enforcement blitzes which can often target vulnerable employees.”

Labor councillor Vicki Clay, from the same ward, told this masthead that she has only had one constituent express concern, “about the possible sale of vapes near a school in Stanmore.” 

Clay supports the “comprehensive” change recently passed. She also favours the Government’s “initiative of undertaking consultation regarding making it an offence if landlords knowingly lease to tenants engaged in illegal tobacco and vape supplies.” The main challenge, she noted, would be establishing proof.

Tax revenue has declined amidst tobacco black market

Revenue from the Commonwealth tax on tobacco products has been severely affected by the thriving illegal trade. Approximately $7.4 billion is expected to be accrued this financial year from the excise and the equivalent customs duty – less than half of the peak five years prior.

Earlier this year, that led premier Chris Minns to call for the “massive” tax to be reviewed. He warned that enforcing it could draw police away from domestic violence and organised crime.

“The biggest supporters of the massive excise on tobacco sales in New South Wales are probably organised criminals, because it’s created a giant black market that they can exploit on every street in every suburb,” he said at the time.

The issue goes even beyond Australia. The rise of high street shops selling illegal tobacco and vapes has been a significant problem in Britain, with criminal gangs operating behind the scenes. Residents there are set to be empowered to block such unwanted shops from opening.