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

Mr. John Bryan:

The IFA holds a strong view on this. Take for example the tillage sector where the net margin return has collapsed. Return on tillage is down over 30% this year in comparison with last year. However, inputs are up 20% or 25% and agricultural contractors - people who cut silage and corn, do wrapping and provide necessary services - are struggling with a cashflow problem. They find it difficult to collect money and most of them would not even dream of trying to collect it until the middle of October when the first half of the single farm payment is issued. If these contractors have to borrow extra money - many silage contractors find it hard to get credit in garages - this could put huge pressure on them. However, even in this situation, there is no stop to fuel laundering.

I believe more money should be spent on enforcement. I cannot understand that at a time when we can track every animal movement, every calf or sheep on our farms, we cannot track the diesel and petrol sold by a garage. I cannot understand why some level of enforcement cannot work, such as a satellite monitor. I was in Australia in an area where there is a problem with water. There, every well had a satellite monitor linked to it which could tell how many gallons of water are consumed in a day. We are not reinventing the wheel here. The technology exists and is cheap. If some garage is selling five times the diesel it purchases, it should be put out of business and all its assets seized. I believe there should be proper enforcement through the use of modern technology.

I attended the Virginia Show in Cavan about three weeks ago where I talked to farmers. These farmers can tell us where illegal diesel laundering is going on. Therefore, I cannot understand how the Revenue Commissioners and the Garda Síochána do not clamp down much harder on it. This is not something that is done in a small place. Big tankers are involved. There must be more effort put into enforcement and substantial penalties should be applied. There is red diesel north of the Border, and I presume a substantial amount of illegal diesel comes from there. I am amazed by the amount of money involved, but I accept that some tens of millions are lost to the State. However, it amazes me that tankers of the size necessary to bring that across the Border or from somewhere else come here and nobody knows where the diesel is coming from. This indicates there is a serious breakdown in enforcement here. We are talking about a huge tonnage, not litres. We are talking about 15,000 gallon tankers. It should be possible to track these and to put significant pressure on them.

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