Businesses hurting

GUS MCCUBBING
FEBRUARY 07, 2018

Despite recently losing about $20,000 worth of stock in a police raid, a gift shop on Station St in Seymour is allegedly back selling illegally imported tobacco, undercutting and financially damaging legitimate local businesses.

A pack of Double Happiness brand cigarettes purchased from Yara Gifts and Accessories last Friday for $15 — just over a week after the raid — was shown to The Telegraph.

The manager of the King of the Pack tobacconist on Wallis St, Suzanne Wirtitsch, said she knew of nine illegal tobacco stores within a 50km radius of her business.

Suzanne estimates she loses between $9000 and $15000 a week because of illegal tobacco stores in town, and said if they did not exist she would be able to offer two extra people up to 20 hours of work a week.

‘‘For a single mum or someone on a carer’s pension, that work is significant — that’s the cost of the black market,’’ she said.

While Suzanne said she expected to enjoy a brief windfall after the raid on Yara Gifts and Accessories, she said she was not at all surprised by how quickly the operation restarted.

‘‘It’s just the cost of them doing business — sure, they might have lost $20000 worth of stock last week, but if they have two or more businesses, they could make that back in one day,’’ she said.

Suzanne said illegal tobacco stores enjoyed increased profits while legitimate businesses were required to jack up prices due to tax hikes.

When she began running King of the Pack in 2015, she said an illegal pack of cigarettes would retail for between $8 and $10, with the norm now being $12 to $15.

‘‘But their cost of goods is exactly the same,’’ she said.

‘‘So their profits are increasing twice a year; as our legal products become more expensive, they can freely charge more for their illegal product.

‘‘We’re not being done out of business by bigger retailers such as Coles and Woollies, we’re being done out of business by criminals, and by our own government.’’

Australasian Association of Convenience Stores chief executive Jeff Rogut said the price of tobacco was now at a level where his members’ stores were being regularly robbed for tobacco.

‘‘Tobacco is now more valuable than cash, so what we’re finding is that when people rob a store, they first thing take is tobacco … because it’s just so easy to turn it into money,’’ he said.

‘‘We’ve said to the government they almost need to consider putting a moratorium on these excises, because it’s just creating an enormous magnet for criminal activity.

‘‘And for a small business — a convenience store or service station — it’s a lot of money off their bottom line that’s funding criminal activity.’’

Ritchies Stores chief executive Fred Harrison said cigarettes had become the prime target for crime gangs, who sold the stolen goods onto the skyrocketing black market.

‘‘The illegal tobacco black market is thriving and crime gangs can make tens of thousands of dollars in a single night to fund further illegal activities,’’ he said.

‘‘No-one should have to go to work knowing they are a major target for violent crime gangs.’’