An explosion of tobacco shop arson attacks in Victoria occurred after an underworld bid to control the price of illicit products failed, police believe.
It has been a year since Victoria police established the Lunar taskforce to investigate a spate of arson attacks in the state. Police confirmed the number of attacks has surpassed 100, and was at 105 on Wednesday.
The genesis for a rolling gangland conflict that is responsible for much of the violence was a meeting of several key players in the illegal tobacco industry around March 2023.
The meeting was called to discuss forming a commission that would control the market for illicit tobacco that was being sold in an ever-expanding number of retail stores, Det Insp Graham Banks told Guardian Australia. The prospective commission was first reported by the Age.
Banks said it was believed the group of fewer than six individuals met in person, and that an agreement was being pursued until it became clear a significant organised crime figure based offshore would not take part in the commission.
He said those in the meeting included a significant outlaw motorcycle group member at a national level, a significant family within organised crime who dealt with illicit tobacco themselves, and other “pretty serious parties”.
“It got to a point in March [2023], where you had various people start to step on each other,” he told Guardian Australia.
“Their view was to try and holistically control the market, we think, and that created obviously friction straight away. Police didn’t probably understand the extent of that friction occurring within the parties involved, but certainly it started to morph into arson as the most evident thing.
“Around about September last year Victoria police made an executive decision to get on top of this and try and turn it around.”
The taskforce was formed because of the increased threat of violence caused by the trade, despite illicit tobacco generally not being considered a state law enforcement responsibility.
Taskforce officers have arrested 82 people, many of whom have been charged with serious offences including extortion, arson, firearms offences and aggravated burglary, police said in a statement.
More than 200 search warrants have been executed at tobacco stores around Victoria, suspected of selling illicit tobacco and vapes.
Banks said that while Victoria had been the centre of the issue nationally, other arson attacks had occurred across the country, including in Western Australia, South Australia and Queensland.
“The five or six outlaw motorcycle gangs who pose the most serious threats to community safety have all got an involvement of some sort [in the illicit tobacco trade] across various parts of the nation,” he alleged.
“They’re in the market in one way shape or form … they’re a party to it, whether they’re running shops, running protection, or just basically collecting money.”
Det Supt Jason Kelly said in a statement that he was concerned that these arson attacks could claim a life.
“As arson attacks continue, both in Victoria and interstate, we remain concerned over the safety of the broader community.
“The likelihood of serious injury or death occurring is both a real possibility and concerning.
“We will continue to target these serious and organised crime networks and work with industry, government agencies at the local, state and national level to reduce the risk of harm to the community.”
