Stronger penalties, regular inspections and legislative overhaul necessary to combat fuel laundering

More punitive penalties, regular inspections, the introduction of a registration system and an overhaul of current legislation for licensing people who sell oil are crucial to tackling the problem of fuel laundering.

Following meetings with a number of stakeholders and interested parties, the Joint Committee on Environment, Transport, Culture and the Gaeltacht identified five key recommendations for consideration and for possible inclusion by the Minister for Finance in the context of the Finance Bill. Among the recommendations are:

•    The introduction of a registration system for fuel users, distributors and retailers thereby providing a verifiable ‘track and trace system’ which would facilitate a supply chain analysis.

•    Current legislation governing the licensing of persons to sell oil should be strengthened to make it more difficult for launderers to get their product into the market place. It should also include a condition that a trader must have planning permission to sell fuel on a premises or to acquire a change of use.

•    Consideration should be given to carrying out inspections on a more regular and consistent basis. The inspection regime should be strengthened to ensure dealers are more accountable with improvements required in record keeping. This would enable better traceability and the tracking of the movement of fuel. 

•    More punitive penalties should be introduced for retailers who engage in selling illegal fuel with the aim of deterring this activity and to also ensure that rogue operators cannot set up in business again. 

•    Consideration should be given to the introduction of an Essential User Fuel Rebate for Irish road hauliers to assist in relieving the pressures on the industry. These pressures have been exacerbated by fuel price increases and such a system could help to sustain the long-term viability of an industry which is of strategic importance in facilitating the export-led economic recovery and ultimately the economic growth of the country.

Committee Chairman Ciarán Lynch, TD said: “Over the past number of weeks the Committee met with the Irish Farmers’ Association, Professional Agricultural Contractors’ Association, Irish Petrol Retail Association, Revenue Commissioners, Department of the Environment, Community and Local Government and Monaghan County Council to discuss the issue of fuel laundering and the loss of revenue to the State, and its impact on the road haulage sector and retailers in the industry. It was clear from our meeting that fuel laundering is a big problem in Ireland and is harming the real economy. Laundered diesel is costing the State as much as millions of euros each year in lost revenue. It is also costing jobs in legitimate businesses which are finding it difficult to compete against black market operators. On top of this, there is a massive environmental issue from the illegal washing out of agricultural diesel to sell it on for road use. As a result the Committee has agreed to forward these recommendations to the Minister for Finance for consideration and for possible inclusion in the context of the Finance Bill.

However, this is just the first step in the Committee’s deliberations on this very important issue. We will compile a much more detailed report which will encompass many of the remaining issues around the subject of fuel laundering and its wider impact.”

To obtain a copy of the report, click here:
http://www.oireachtas.ie/parliament/oireachtasbusiness/committees_list/etcg/reports/


For further information please contact:

Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2

P: +3531 618 3903
M: 086-0496518
F: +3531 618 4551

Committee Membership

Deputies:

Ciarán Lynch, Labour Party (Chairman)
Noel Coonan, Fine Gael (Vice-Chairman)
James Bannon, Fine Gael
Paudie Coffey, Fine Gael
Terence Flanagan, Fine Gael
Marcella Corcoran Kennedy, Fine Gael
Tony McLoughlin, Fine Gael
Patrick O’Donovan, Fine Gael
Brian Walsh, Fine Gael
Kevin Humphreys, Labour Party
Gerald Nash, Labour Party
Seán Kenny, Labour Party
Robert Troy, Fianna Fáil
Timmy Dooley, Fianna Fáil
Niall Collins, Fianna Fáil
Sandra McLellan, Sinn Féin
Dessie Ellis, Sinn Féin
Brian Stanley, Sinn Féin
Clare Daly, Socialist Party
Catherine Murphy, Independent
Luke ‘Ming’ Flanagan, Independent
 
Senators:

Cáit Keane, Fine Gael
Catherine Noone, Fine Gael
Labhrás Ó’Murchú, Fianna Fáil
Ned O’Sullivan, Fianna Fáil
Fiach Mac Conghail