Concerned about the number of 'illegal' tobacco and vape shops in the Lismore CBD block, Lismore City Councillor Jasmine Knight-Smith put forward a motion that would see Council write to to the Federal Minister for Health, the Hon Mark Butler MP and the Minister for Home Affairs, the Hon Tony Burke MP, to express its concern about the involvement of organised crime and what compliance measures the federal government is undertaking to control the increasing number of shops selling illegal tobacco and vapes.

"At last count, I identified eight in the (CBD) block as the closest level of government to the community. It is incumbent on us to tell the Feds when our community has a concern, which is governed by their legislation and their enforcement.

"What is happening in our city right now is a concern. This is not just a local issue; it's a national crisis. These illegal operations undermine public health, community safety and the rule of law, and most alarmingly, I believe, and the media has reported accordingly, they are linked to organised crime.

"Australia's illegal tobacco trade has grown to an estimated $10 billion a year black market, with organised crime groups profiting from excise-evading cigarettes and vapes and now make up half of all nicotine products sold in the country."

In one of its news stories about illegal tobacco, the ABC said that internal tobacco industry data estimates the illicit tobacco market now makes up 64 per cent of all tobacco consumed in Australia and 82 per cent of the total nicotine consumed.

If 64 per cent of the 10.5 per cent of smokers in Australia (2024 data) are buying illegal cigarettes and vapes, the two questions being asked are whether the federal government excise is too high, thus creating the black market that currently exists? Or, is the high tobacco excise justified as the smoking rate in this country has reduced from 25 per cent in the early 1990s to 10.5 per cent in 2024?

Lismore City Councillors didn't address the fact that 64 per cent of smokers are purchasing illegal cigarettes at $9 to $10 a packet; instead, they focused their attention on organised crime and the criminal activity it creates.

"Since March of 2023, there have been 125 fire bombings of illegal tobacco and vape shops in stores in Victoria and dozens more across other states, including here in New South Wales and close to our home and our community in Ballina, in Casino and in Tweed Heads," Cr Knight-Smith said.

"These attacks are not random, it's been reported. They're part of a violent turf war between rival criminal organisations. Just recently, a man linked to the industry was shot dead in broad daylight in a laneway behind his own home. Agree or disagree with smoking, but legitimate businesses are suffering. Petrol stations and actual convenience stores have been robbed, intimidated and lost significant trade. Retailers are considering exiting the industry. I know of at least one legitimate retailer previously located in Magellan Street that has exited the industry."

"What we're seeing in Lismore right now is deeply concerning. This motion is about protecting our community, advocating for our community, supporting lawful businesses and ensuring that Lismore is not a safe haven for illegal trade. I want the federal government to take coordinated action and to work with state and local authorities to ensure enforcement is effective and communities like ours are supported. We need to tell them what is happening right now in Lismore on the ground."

Questions were asked of the General Manager, Eber Butron, about enforcing smoke-free areas in the CBD and if DAs could be refused; however, the response was that there is no real action that Lismore City Council can take to stop new retail shops opening and selling illegal tobacco if they go through the correct licensing process and it is approved.

Cr Dalton-Earls said, "It doesn't sound like we have a strategic plan in terms of what businesses we're approving and in what areas, in particular in the CBD."

That point was refuted by the GM. "We do have a strategic plan. We've got a Local Environmental Plan, we've got a Development Control Plan, and all our assessments of the relevant developments are assessed in accordance with that. There's also state legislation in terms of exempt and compliant development. So, all the shops are operating in relation to what you'd refer to as a legislative framework, but also the strategic planning and all the requirements under the Planning Act."

Mayor Krieg jumped in and said You can't regulate the number of convenience/tobacco stores just as much as you can't regulate the number of cafes in a strip. "That's not our place. That's up to the landlord," he said.

When he spoke in favour of the motion, Cr Dalton-Earls spoke again about the number of tobacco shops in the CBD.

"I'm not necessarily opposed outright to tobacconists at all, but I do have deep concerns when they are very close together, and it can create a number of social issues, which we are seeing. I think this is an important motion to say that in Lismore, we have identified this as an issue, and we would like further support and guidance in how we manage this problem moving forward, essentially."

Councillor Rob's view was that this is not a Lismore City Council issue but a state government issue, just like crime. Cr Battista said that the councillors also represent the ratepayers who are business owners in the CBD.

"They're actually doing the right thing. They actually license and they sell legal tobacco, and they pay rates where these people may or may not pay rates, but definitely make a lot of money out of it, illegal practices in our CBD. And I don't think that's fair.

At this point, Cr Jensen suggested they add Member for Lismore's name to the recipient of council's letter as it was a state issue, which was accepted by Cr Knight-Smith.

Cr Hall entered the discussion by asking, "Do we know that all eight convenience stores are selling illegal products? Are they selling anything else that's actually a legal trade in town? For me, I hate seeing empty shops. I don't want anyone doing anything illegal, obviously, or untoward, or encouraging criminal activity or anti-social activity, but if they are, if some of them are just convenience stores, it's good to have the shops filled in town."

Cr Knight-Smith said that she went into every single vape shop in the CBD, "And every single one sold disposable vapes. Disposable vapes are the one that is particularly illegal."

When it came to the vote, Crs Knight Smith, Guise, Dalton-Earls, Jensen, Waters, Battista, Hall and Krieg voted for, and Crs Rob and Bing voted against. So, a letter will be written to the Federal Minister for Health, the Hon Mark Butler MP, the Minister for Home Affairs, the Hon Tony Burke MP, and Member for Lismore, Janelle Saffin.

In September, the Federal Government increased the excise by a further 5 per cent on top of regular indexing, so a 6.8 per cent increase. That brings the excise to just under $1.50 per stick. Now, for a packet of 20 legal cigarettes, the government excise is $30, bringing the cost to well over $40 to the consumer.

It is difficult to argue that the Federal Government (both political parties) has created a black market that is out of control, and a market that is now supported by 64 per cent of tobacco smokers who are buying illegal cigarettes at $9-$10 a packet at a time when there is a cost-of-living crisis.

Since 2020, government revenue has fallen from $16 billion to $7.4 billion in 2025. Further falls are being forecast. A $345 million investment from the Federal Government has been the response to curb the illegal trade.

The war on illegal tobacco and vapes has only just begun.