Mr. Gerard Moran:

Deputy Kenny raised the question about the estimated loss of revenue from diesel fraud. As I said earlier, with any illegal activity, there is a huge difficulty in estimating the cost to the Exchequer. We are able to make a stab at it in regard to illegal tobacco on the basis of surveys conducted on the packets people have and from where they got them. Therefore, we are able to come up with a notional loss to the Exchequer in regard to tobacco. With regard to most other areas where there is a degree of non-compliance or tax fraud, there are not very solid ways of coming up with satisfactory estimates. I am afraid that I am not able to say that we have got one of what it has cost us over the years. We are doing some work currently on the basis of the increased legitimate consumption we are seeing and the increased revenues that have flowed from diesel consumption in the past few years. If that amounts to something, we will publish it, but as things stand we are not able to put an estimate on what the cost is.

The Deputy mentioned the organised crime groups with paramilitary connections. They exist and they are a big part of the problem. It is for that reason that we have very well developed and solid working relationships with the Garda, Criminal Assets Bureau, CAB, the Police Service of Northern Ireland and HM Revenue & Customs in Northern Ireland. As I mentioned earlier, there is a cross-Border fuel fraud group and a cross-Border tobacco fraud group. Those activities are being tackled. There are forums for sharing of intelligence in regard to individual targets and all of that work proceeds. The CAB is very much a key player in targeting the organised crime groups and that happens as a matter of course. The CAB publishes its annual report every year and the assets it would seize, or the tax assessments it would raise, on figures in organised crime groups will not be attributable to particular areas of activity that they have got. It pursues them across the spectrum of their activities and goes after whatever assets or income it can find. To reassure the Deputy, the CAB is a crucial part of the machinery of the State in tackling organised crime groups and it is very successful in doing that.

The question of penalties was raised by a number of Deputies. In terms of the penalties in place, on a summary conviction, the maximum fine is €5,000 and or a term of imprisonment not exceeding 12 months and on conviction on indictment, the maximum fine is €126,970 and or a custodial sentence not exceeding five years. In practice we have been securing rather modest court fines because what seems to happen is that when we proceed with an indictable an indictable prosecution, we will either secure a custodial sentence, although it may be suspended in many cases. Looking at the total, we have had five people sentenced for fuel fraud crimes. We have had two custodial sentences and three suspended sentences and in those cases I understand there have not been any fines imposed. What happens if they are giving a custodial sentence, regardless of whether it is suspended, there is not a fine. The other fines we have got are where there is a summary prosecution. The average fine they were getting in those cases is about €2,500.

In terms of how we proceed, if there is evidence for a prosecution, we will take a prosecution, but much of our activity proceeds on the basis of their compliance first, with the law and second, with the requirement to keep records and comply with licensing conditions. As I said earlier that is where the business of dealing with the 130 filling stations and our ongoing challenges to traders, whether it is filling stations or suppliers, comes in.

Regarding the filling stations that we would close, it would not necessarily be because we have discovered that a prosecutable offence was committed or an offence as such. What we are discovering is that they are not satisfying the conditions of their licence and, therefore, we withdraw the licence. If they continue to trade, and that is where many of the seizures of fuel arose, we have gone in and pumped out that filling station or that trader. We seize the product.

As a tool for tackling problems in the sector, licensing is the key. A number of Deputies drew attention to the significance of that, and that has been our approach also. We want to have stringent conditions attaching to all the players in the sector.

We have to pursue them and where they are not meeting those conditions we are aggressive in seeking to have their licence revoked. That said, we have had some push-back on this and as a result of that we have had to strengthen the primary legislation. Where we have had push-back we are appealing to the Supreme Court, but in the meantime we are strengthening the primary legislation to clarify the grounds we have to take on operators that are not meeting the standards prescribed in excise law that are attached to their licences.