Dáil Éireann Debate, Tuesday - 3 July 2018
83. Deputy Declan Breathnach asked the Minister for Finance if additional measures will be introduced to deal with the problem of fuel smuggling and trading in illicit diesel products; if his attention has been drawn to the fact that this illegal activity is responsible for an increase in the number of intermediate bulk containers of sludge being dumped in County Louth; and if he will make a statement on the matter. [29029/18]
View answerI am aware of reports of incidents involving the illegal dumping of sludge in Co. Louth, and recognise the serious threat that fuel fraud poses to legitimate business, consumers and the Exchequer. I am advised by Revenue that tackling fuel fraud has been one of their priorities over recent years.
While it is very disappointing that incidents such as this still occur, I am advised that the level of such activity is greatly reduced. I am advised by Revenue that a total of 100 intermediate bulk containers of mineral oil waste have been detected to date in 2018, in Co. Louth. A further 18 containers were found in Co. Monaghan, but these have been classified as historical dumps that had been previously undiscovered. These figures compare positively when set against 500 intermediate bulk containers that were detected in 2013.
The aforementioned improvement reflects the success Revenue has had in tackling this problem and the impact of legislative changes that I and my predecessor introduced over a number of Finance Acts to strengthen Revenue’s powers in tackling fraud in the fuel sector. The measures implemented by Revenue to tackle the problem included the introduction of stringent new supply chain controls and reporting requirements for fuel transactions to minimise the scope for fraud. It also included a rigorous programme of enforcement action by Revenue. In addition, Revenue and HM Revenue and Customs in the United Kingdom undertook a joint initiative to find a new fiscal marker for use in marked fuels, which was introduced in Ireland and the United Kingdom from the beginning of April 2015.
The industry view is that the measures implemented to date have been successful in curtailing the problem in Ireland. This view is supported by a significant increase in tax revenues from road diesel over the past couple of years. I am also advised that Revenue conducted a random National Sampling Programme in 2016 and 2017, to assess the extent of the fuel laundering problem. The programme involved selecting a random sample comprising nearly one in every ten of the 2,500 holders of Auto Fuel Trader Licences (any trader that produces, sells, deals in, or keeps for sale or delivery road diesel is legally obliged to hold such a licence). Road diesel samples were taken from all traders in the programme and tested for the presence of the new marker. No evidence of the new fiscal marker was found in any of the samples tested.
Although the available evidence to date indicates that the new marker cannot be laundered by conventional methods, I am advised by Revenue that it remains vigilant. A further sampling programme in 2018 was expanded to include hauliers and other businesses in the transport sector as well as auto fuel traders. Data from this sampling programme is currently under analysis.
I am satisfied that Revenue’s work against fuel fraud has delivered significant success, that Revenue is alert to the resourcefulness of those involved in fuel fraud, and that appropriate action in this area continues to be a high priority. I will fully consider any additional proposals for legislative change that may be brought forward by Revenue which would enhance its capacity to deal effectively with fraud and criminality in this area.
