Dáil Éireann Debate, Tuesday - 17 January 2012
152 Deputy Derek Keating asked the Minister for Finance if he would outline to Dáil Éireann the plan of action of Custom and Excise Services to deal with the problem of cross-Border fuel smuggling; and if he will make a statement on the matter. [2460/12]
View answerI am informed by the Revenue Commissioners, who are responsible for the collection of mineral oil tax and for tackling the illicit trade in fuel products, that the price in Northern Ireland for regular diesel and petrol is approximately 15% higher than in the State and that consequently illegal imports of these commodities are not an issue. However, illegal activity in the form of diesel fuel laundering, which takes place mainly in the State, does pose a serious threat to the Exchequer. Fuel laundering involves large-scale removal of markers from rebated mineral oil, which is subject to a reduced rate of mineral oil tax on condition that it is not used in road vehicles. This form of tax evasion is a matter the Revenue Commissioners and the Government take very seriously, particularly given the current economic climate. Revenue employs a broad range of compliance and enforcement strategies to detect and counteract illegal practices involving mineral oils. These include ongoing analysis of the nature and extent of the problem; development and sharing of intelligence with agencies on both sides of the border; the conduct of intelligence driven operations using covert surveillance to identify oil laundry locations; seizure of illicit product, laundering equipment and vehicles; physical sampling at road checkpoints; closure of unlicensed or improperly licensed outlets and seizure of stock, and prosecution of those involved in illegal activities in relation to mineral oils.
In 2010, Revenue enforcement staff detected four oil-laundering plants in this jurisdiction and seized 228,000 litres of laundered oil. In addition, nine retailers were found dealing in laundered oil and eight haulage companies were detected using it in their vehicles. There were four court convictions in 2010 for laundered oil offences.
In 2011 nine oil laundries and 327,000 litres of laundered fuel were seized, together with nine oil tankers and twenty-nine other vehicles. Sixteen persons were arrested in the course of these operations and files have been sent to the Director of Public Prosecutions, who has to date issued directions to prosecute on indictment in respect of two of the cases. In addition, a further 718,181 litres of illicit mineral oil has been seized, the large majority from retail outlets or in the course of delivery to such outlets
Revenue is currently engaged in a vigorous campaign targeting specific locations nationwide, with the intention of immediate closure of unlicensed outlets and the challenging of other instances of non-compliance. As part of this drive, warning letters have been issued to unlicensed retail outlets and a number of these have been effectively closed down by the actions of Revenue enforcement teams. This campaign is ongoing and Revenue is in the process of seizing illicit product and closing down a further number of unlicensed or otherwise illegal retail outlets.
Revenue is currently reviewing its enforcement options to ensure that its action against this illegal activity continues to be as effective as possible. The matters being addressed include the potential development of an enhanced fuel marker. In this regard, close liaison has been established with HM Revenue & Customs. Consideration is being given also, in the context of the forthcoming Finance Bill, to possible changes in the law, particularly from the point of view of the control of the supply of oil, which would enhance the capacity to combat this illegality.
