Oireachtas Joint and Select Committees

Wednesday, 3 December 2014

Joint Oireachtas Committee on Transport and Communications

Fuel Fraud: Revenue Commissioners

10:30 am

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail) | Oireachtas source

I thank Mr. Moran and Mr. Butler for attending and for their presentations. I accept that the remit of the Revenue Commissioners is to collect taxes on behalf of the State. As Mr. Moran has said, resources are deployed based on potential risk and, in particular, the scale of that risk.

Petrol stretching is different from other fraudulent activities because it has two victims. In the first instance, the State is a victim due to a loss of revenue. In many cases of other fraud activity the State is the only victim. In petrol stretching, the consumer is a significant victim. I have spoken to many people and families who have been destroyed by the effects of petrol stretching. Sometimes two or three cars belonging to a household are affected because of loyalty to a particular petrol station where they purchase fuel. I am aware of a myriad of cases. In one case both cars were destroyed by petrol stretching, the husband and wife must repay car loans for both cars but the bank will not provide finance to repair the cars. That means the couple must avail of public transport to get to work, yet pay for cars parked on the forecourt of a garage that require between €10,000 and €12,000 for repairs. That couple do not have the money for the repairs.

I am concerned by what was said about the risk involved. Effectively, there is no arm of State looking to protect such consumers or to resolve their issues. In the case I mentioned the insurance company has turned its back on the couple and has refused to provide support. In some cases insurance companies have paid compensation because they deemed petrol stretching as an insurable risk.

The Government has not made a coherent response to petrol stretching. I do not want to be overly critical of the Revenue Commissioners but they are just part of the arm of the State. Over the next couple of weeks the committee will bring together all the stakeholders involved to see if we can design a mechanism for redress. Is there legislation that the Revenue Commissioners do not have in their toolbox? Is there anything additional that we can provide through legislative support that would assist them to better address this matter? Is there a method by which we can make petrol stations more responsible for the fuel they sell?

I have dealt with some cases where only one filling station was involved. The people concerned purchased their fuel from the same location for the previous five years so there is no other potential supplier. Should we increase the fines and prison terms for the crime? Is there anything we can do that will make it easier for Revenue and the Garda to do their job?

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