Oireachtas Joint and Select Committees
Thursday, 12 September 2013
Joint Oireachtas Committee on Finance, Public Expenditure and Reform
Overview of 2014 Pre-Budget Submissions: Discussion (Resumed)
12:20 pm
Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source
I wish to raise another issue with Mr. Bryan, the issue of the marked agricultural diesel. In his pre-budget submission, he reiterated the IFA's position that it wants to retain the current system. As Mr. Bryan is aware, the issue of illegal fuel laundering is a growing problem, and is a massive problem in the Border counties in particular, resulting in huge clean-up costs for many local authorities along the Border area. It is an issue the Government must examine seriously. It has tried all sorts of initiatives to combat the illegal dimension and I am aware the IFA welcomes the rebate system introduced for hauliers last year. From the State's point of view, would it not be better to have a system where everybody pays the same and then authorised users, like IFA members, could claim back the difference? Would it not be better to equalise the excise tax as such and for them to claim back the difference? While I agree there would be cashflow and administrative issues to be addressed, they could be addressed at the point of implementation. This would kill off the enormous amount of illegal activity which costs a significant amount for the State and local authorities. There are various estimates as to the amount involved, but it certainly amounts to tens of million, possibly between €100 million and €200 million. I would welcome Mr. Bryan's thoughts on that.
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