One of Australia’s biggest retail chains has dumped a franchisee after several of their stores were swept up in a NSW Health operation that shut 17 Sydney CBD outlets over alleged illicit tobacco and vape sales.
Eight stores in the city and nine in Haymarket were slapped with 90-day closure orders in a 10-day window this month.
It is understood health inspectors have already conducted surveillance on a significant number of other outlets, with further closures expected in coming weeks.
Among those forced to temporarily close is EzyMart, one of Australia’s biggest independent convenience chains, with four of its CBD stores shuttered last week.
At its George St location, health inspectors and police formally closed the premises, plastering closure stickers across the front window.
EzyMart management pinned their own notice alongside the government sticker, distancing themselves from the alleged sale of illicit products, declaring they were terminating the franchisee’s agreement.
“EzyMart supports the actions taken by NSW Health in relation to the alleged sale of illegal vaping products and non-compliant merchandise at this store,” the notice read.
“This store was operated by an independent partner license whose agreement is now being terminated. EzyMart Head Office is taking immediate steps to appoint new management.”
“EzyMart does not condone the sale of illegal products under any circumstances and is actively working with authorities to ensure full compliance across our network.
Sources say EzyMart has an internal compliance system to flag any illicit products being sold, but it failed to catch the alleged sales happening a stone’s throw from the chain’s own head office.
EzyMart did not respond to questions from The Daily Telegraph.
There are currently 169 stores across NSW under active 90-day closure orders, 10 of them EzyMarts.
The crackdown sees NSW Health inspectors conduct undercover surveillance on stores before swooping in days later with police to serve closure notices.
The Daily Telegraph has previously revealed many shuttered stores are reopening within days despite the orders remaining in force.
NSW Health also holds powers to impose 12-month closure orders under the same laws, yet not a single store has received the maximum penalty since the legislation was introduced.
Australian Association of Convenience Stores chief executive Theo Foukkare welcomed the raids but warned enforcement alone wouldn’t fix the problem.
“The majority of independently owned ‘so-called convenience stores’ in the CBD have been getting away with this for too long, so all enforcement action is welcome,” he said.
“But there is a long way to go and we still believe that enforcement is not the only solution.”
He said it was “disappointing” EzyMart had been caught up in the raids, given how hard head office teams work to keep franchisees compliant.
NSW Health Minister Ryan Park praised enforcement personnel but took aim at federal inaction on the tobacco excise fuelling the black market.
“So long as there remains a sizeable gap between legal and illegal tobacco created by the federal tobacco excise, it will continue to perpetuate a black market,” Mr Park said.
“To bad actors out there, if you do the wrong thing, sooner or later our enforcement personnel will come for you.”
Mr Foukkare urged Prime Minister Anthony Albanese and Treasurer Jim Chalmers to revisit their tobacco excise settings, saying the current policy had helped create a $10 billion black market.
“It’s about time they listened to the NSW Premier, NSW Police Minister and NSW Health Minister in their calls to reduce excise as the key lever, along with enforcement, to tackle this illicit market,” he said.
Extracted in full from: https://www.dailytelegraph.com.au/news/nsw/huge-crackdown-on-illegal-tobacco-and-vapes-in-sydney-cbd-sees-17-sydney-closed/news-story/9d2e6e9950a473abc0e56a50b6502372
