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Illicit Trade

Dáil Éireann Debate, Wednesday - 31 March 2021

Wednesday, 31 March 2021

Ceisteanna (66)

Brendan Smith

Ceist:

66. Deputy Brendan Smith asked the Minister for Finance the additional measures he will implement to counteract the illegal and cross-Border trade in tobacco and drink products and household fuel products; and if he will make a statement on the matter. [17154/21]

Amharc ar fhreagra

Freagraí ó Béal (7 píosaí cainte)

The Minister may recall that I table questions on a regular basis regarding the need to ensure the statutory agencies have the resources and tools available to them to deal with illicit trade and cross-Border smuggling. Sadly, despite all the good measures and the good work of our statutory agencies at local level, substantial illegal trade is still happening. I ask that we be vigilant at all times and that we introduce new measures, if needed, to counteract such illicit behaviour by gangsters and criminal gangs.

I am assured by Revenue that combating the threat which fuel fraud and the illicit alcohol and tobacco trades pose to legitimate businesses, consumers and the Exchequer continues to be a priority. Steps taken by Revenue to combat the illegal mineral oils trade, including home heating oils, include the introduction of stringent supply chain controls and reporting requirements, a rigorous programme of risk-focused enforcement action and the application of robust legislation. In addition, Revenue and the UK Revenue and Customs undertook a joint initiative to introduce a new marker for use in marked fuels, which came into operation in April 2015. The industry view, I believe, is that the actions taken have been successful in curtailing fuel fraud.

Solid fuel carbon tax is an excise duty that applies to coal and peat when first supplied in the State for use as a fuel. Neither the movement of solid fuel into the State nor the physical presence of solid fuel in the State generate a liability to solid fuel carbon tax. Therefore, there is no smuggling offence, in terms of evasion of solid fuel carbon tax, attaching to coal coming into the State from Northern Ireland. It is collected by Revenue on a self-assessment basis and compliance with the law is enforced using the full range of compliance interventions and enforcement provisions for self-assessed taxes. I am advised that a solid fuel carbon tax compliance module has been included in Revenue’s ongoing mineral oil tax national compliance project.

I am well aware of the importance of this matter and all of the work that goes on between Revenue and An Garda Síochána to deal with the very serious issues that Deputy Smith has persistently raised with me on behalf of his constituents.

I thank the Minister for his reply. I want to take the opportunity to complement the members of the Garda, the Revenue Commissioners and other statutory agencies and local authorities who have had to deal with these thugs and criminal gangs over the years. They are a very sophisticated outfit and I know there has been very good work done. However, we need to be vigilant. Our measures, legislation and regulations need to be monitored and reviewed because we know things move on with technology and so on. It is a bit of a misnomer to use the term "self-assessment" in regard to smugglers. I know what type of self-assessment they do.

There will be an additional problem after 1 May in that there will be an extra carbon tax here on smokeless and smoky coal, and there will be a big differential between the price charged by legitimate businesses in our State in comparison to what is being charged north of the Border. I see those depots right along the Border. I spoke to some of the people in small and medium companies who are working extremely hard to survive.

They are at their wits' end in regard to the uncompetitive environment they are working in, trying to deal with imports of much cheaper product from Northern Ireland. I ask that officials would look again at that issue after 1 May.

I assure the Deputy that all that can be done is being done by An Garda Síochána, their counterparts in Northern Ireland and Revenue on this matter. I accept that the changes to our carbon tax that come into force in May will have an impact on the differentials to which Deputy Smith refers. However, the differentials that can lie behind the smuggling to which the Deputy referred will be the subject of a minor change that can be attributed to the increase in carbon pricing in May. I know that there will be a change but I do not believe that, of itself, will be a contributor to some of the issues referred to by him.

I will give the House an example of the kind of work that is under way. Cigarettes and other tobacco goods to the value of €36.9 million were seized by the Revenue Commissioners across 2020. I am advised that at the beginning of this year, Revenue participated in a number of joint operations within low smoke zones to deal with some of the issues of concern to the Deputy.

For some time, I have advocated more cross-Border agency work and a joint approach by both police forces and Revenue offices. That is happening and it is very welcome. Again, I take the opportunity to compliment officials at local level who are dealing with these matters but there is a trade going on out there and small-scale traders, the owners of legitimate businesses who dutifully pay their taxes and dues to this State, are finding it hard to survive. My message is that we must be constantly vigilant and attentive to this matter. If additional resources or powers are needed by statutory agencies, these should be provided. At times there are additional demands on our local authorities to conduct additional inspections but no additional resources are provided. That happened last year with regard to the monitoring of smokeless fuels. Local authorities were not given the additional resources they needed to carry out their statutory obligations. I ask that the Department would look at that in the overall context.

Resources are being made available, particularly to the Revenue Commissioners, to deal with the issues referred to by the Deputy. I mentioned earlier the work now being done by Revenue in terms of the joint operations being conducted in low smoke zones. Revenue is collaborating with the Department of the Environment, Climate and Communications and local authority solid fuel inspection teams with a view to checking compliance with the important taxes in this area. If the Deputy is aware of any particular issues in terms of additional resources that are needed to enhance this work, I ask him to let me know. Although it is not directly connected to the issues he raises now, he might be interested to know that in relation to seizures of oil, there were 601 different activities by Revenue across 2020 alone. These are really serious issues which are being taken very seriously by the Revenue Commissioners and the Government.

I am afraid that we only have time for one more question. We will move on to Question No. 70 in the name of Deputy Doherty.

Questions Nos. 67 to 69, inclusive, replied to with Written Answers.
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