Carolyn Young: Retail NZ CEO on the growing illicit tobacco black market in New Zealand

Retail NZ is warning time's running out to counter a tobacco black market crisis. 

The group's released a new report detailing the rise in illicit tobacco, including reports from retailers of sales happening near their premises.  

The group wants an Illicit Tobacco Taskforce setup to bring Customs, Police and Health officials together to fight the growing problem.  

CEO Carolyn Young told Ryan Bridge that when organised crime infiltrates the legitimate market it changes the landscape, and brings with it more crime. 

She says we need to act now while we still have this window of opportunity. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Charlie Z sounding the alarm on illegal tobacco. A new
report has found as much as twenty seven percent of
tobacco consumed here is illegally imported and not being taxed.
There's a warning as well, the black market could turn violent,
just like we've seen in Australia. Carolyn Young, Retail and
Z chief executive, with me this morning. Hey Carolyn, Carolyn,

(00:21):
good to hear from you. Good morning, Yeah, good morning.

Speaker 2 (00:25):
Hey.

Speaker 1 (00:25):
Why have you guys decided to do a report on
illegal tobacco.

Speaker 2 (00:30):
Look, it's such a major issue in Australia with international
organized crime groups running the tobacco market in Australia. We
see over one hundred fire bombs that have occurred in
the state of Victoria alone, and organized crime on an
international scale brings with it a lot of other things.

(00:52):
We obviously support retailers, We support legitimate businesses doing providing
great services to our communities. As soon as you start
looking at organized crime infiltrating into a legitimate market, it
changes the landscape, brings with it more crime that we
already know is difficult in New Zealand to manage retail crime,

(01:13):
and we believe that we need to act now while
we've got this window of opportunity before we reach the
stages that it's at in Australia.

Speaker 1 (01:19):
Retailers, some retailers are part of the problem here, aren't they.
And I saw that there was this case study in
your piece about a retailer who was selling illegal tobacco products.

Speaker 2 (01:30):
Yes, and I think for that particular store, we did
that case study. And I would use the term retailer
loosely because you know that store is only illicit product
and we believe is run by an organized crime group.

Speaker 1 (01:46):
It's a car boot situation. Our retailer's aredea dairies selling
illegal tobacco.

Speaker 2 (01:53):
There will be some that will be selling it under
the counter illegal, that's correct, and model happened. What happened
in Australia is that explosion where we've got to now
we're nearly eighty percent of sales in Australia are illicit.
You know, basically, the international gangs come in and they
run a lot of out of the Middle East and
out of China. They're running these illicit tobacco stores and

(02:16):
then they're setting them up quite close to other businesses
like a superses or like a dairy or like a
vape store. And then what happens is that those stores
their business just to clines, so they pressured into selling
the illicit tobacco as well.

Speaker 1 (02:34):
You're wanting to it. There's a whole bunch of stuff
if you've asked for, including a working group and some
money and stuff. But it's like drugs. You'll never stop
at all, will you end in. The reason it's happening
is because of the price the tax on them. They're
like fifty bucks for a packet of twenty, so people
are going to go to the black market.

Speaker 2 (02:50):
That's right, there's an opportunity therefore, a black market to infiltration.
In Australia, the exercise is even higher, which is why
it's really taken off. You know in Australia they're trying
to close the gate autter. The horse has already bolted
because it's so far at heead and they didn't acknowledge
there was an issue. We have spoken to the minister.
She's aware of the issue and wants to take action.

(03:12):
And so you know, this report ready outlines some immediate
things that should be done and you know the need
to get together around table of all of the interested
parties your customs, health Police, ourselves to sit down and
investigate further. Some of these recommendations we've made because we
don't have all the answers, but what we do know
is that something needs to be done and we need

(03:32):
to act now.

Speaker 1 (03:33):
Carol and Young Retailing is their chief executive. For more
from Early Edition with Ryan Bridge, Listen live to news
talks there'd be from five am weekdays, or follow the
podcast on iHeartRadio