Oireachtas Joint and Select Committees

Wednesday, 19 November 2014

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance

Finance Bill 2014: Committee Stage (Resumed)

3:45 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent) | Oireachtas source

I thank the Minister for his response. He is right that much work has been done on diesel laundering and there is absolutely no doubt but that Revenue, customs and his Department are to be commended on that. The new marker, which will be introduced in the new year along with the licensing which has been introduced, will make a significant difference.

The Minister is also right that diesel laundering has more potential to undermine the finances of the State than petrol stretching but the difficulty is that from the consumer's point of view, petrol stretching has a far more dramatic impact and it happens far more quickly. I know of one local garage which sees two cars per day with their engines seized up because they have been filled with petrol which has been stretched. We are talking about in excess of 200 to 300 cars whose engines have completely seized up as a result of this. Many of these people do not have the financial resources available to them to replace their cars.

The Minister admitted in his response to me that there is different treatment in regard to the accounts which need to be submitted by petrol retailers to Revenue when dealing with diesel and when dealing with petrol. The reason Revenue has been so focused on the issue of diesel is that there is a huge financial loss to the State. The financial loss to the State is less from petrol stretching but the financial cost to consumers is significant and quite a number of people have been badly hit. I know of a couple, both of whom are on the minimum wage, with an eight year old car and a ten year old car, which they used to get to work. They had third party insurance and they do not know how they will get to work. Christmas has been cancelled for that particular family.

I need an assurance from the Minister that the Revenue Commissioners will now apply the same criteria in regard to accounting for petrol which currently apply to diesel to ensure that petrol supplies are being monitored in exactly the same way. This, in itself, will reduce the possibility of rogue traders using this as a mechanism to put stretch petrol into the system.

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