There is exception in subsection (2) for fuel "in the fuel tank of a motor vehicle or in a portable fuel tank the capacity of which does not exceed ten litres". What is the position for a motor launch visiting the country with fuel in its tank or of a pleasure craft? What would be the position of a yacht visiting one of the southern ports with a gas tank which may be working off an auxiliary motor using a portable fuel tank in excess of ten litres? The likely capacity of the fuel tank would be 35 or 40 litres.
SECTION 101.
Question proposed: "That section 101 stand part of the Bill."
Is the Deputy asking about a vehicle such as a yacht, a plane or vehicle carrying more than ten litres?
There is an exemption on a motor vehicle.
In the case of a visiting vehicle, whether a cruiser, boat or other type of vehicle, a tank of over ten litres would present no difficulty. It would be exempt.
Why is it necessary to specify the exemption for a motor vehicle?
It is part of the council directive on this issue. Deputy Noonan's concern is that the customs and excise provisions of this section might be imposed on somebody visiting Ireland in a cruiser with a tank capacity of 50 litres.
Ireland attracts much yachting traffic now.
I can assure the Deputy that customs and excise officials would not concern themselves with visiting vehicles such as those.
I accept that. Motor cruisers are a category which may carry more than ten litres of fuel as are yachts. Many French yachts come into Baltimore or Dingle and could be using an auxiliary motor and carrying a portable tank of 50 litres of diesel. I know that customs and excise officials would not bother themselves with it in normal circumstances but is a technical offence being committed?
I am advised that a yacht travelling in international waters would be entitled to carry fuel in a storage tank. Under normal law the customs and excise officials would not consider that to be in breach of any Act.
This presupposes an equalisation of excise duty and VAT rates between here and the other side of the Border. Under the section, if different rates applied here and across the Border would it be possible for me to drive across the Border with a petrol tanker and say that the petrol was for my own use? As I read the section, it seems possible. I may be misreading it.
Is the Deputy concerned about smuggling?
If there was a difference in excise duty between two States, would it be possible for me to do as I outlined?
The Deputy would be liable for duty under this section.
What about a situation——
The exemption is for fuel in the tank under this section.
Suppose that, instead of bringing back fuel for the car which was put into a diesel tank in the back yard, Deputy Ahern brought back 1,000 litres of diesel central heating oil. Would he be entitled to an exemption?
No, he would be liable to duty on that.
There will not be any free movement of excisable goods, then?
That is the way it will be for every country and that is what is laid down in the Directive.
In order to protect the excise base in each state? Presumably the assumption is that, over time, market forces will harmonise prices?
That is the theory.
Question put and agreed to.