Oireachtas Joint and Select Committees

Thursday, 15 November 2012

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Tackling the Black Market and Retail Crime Report: Discussion

10:20 am

Photo of David CullinaneDavid Cullinane (Sinn Fein)
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I thank Mr. Gleeson, Mr. Lynam and Mr. Hickey for their presentations. We are all agreed that the black market undermines our domestic economy, costs jobs and has implications for workers' rights, which I will explain later. It also costs lives. Mr. Hickey made the point that there is a connection between the black market, criminality, drug gangs and gun crime. This problem needs to be eradicated. It is important that resources are put in place to do so.

For me the core issue is tax compliance. It is important all individuals and companies are tax compliant. Those operating in the black market do not pay tax. It is in this area that some of the energy, in terms of resources, needs to be targeted. When there is an unlevel playing field, with some companies and people involved in smuggling and so on not paying taxes, this has implications for legitimate businesses which do pay their taxes. It is true to say that some companies are involved in the black market in terms of not paying their employees' PRSI contributions, which means employees are in turn not protected in terms of their benefits. This impacts on competing companies resulting in their having to cut costs which, in turn, impacts on employees. The black market impacts not alone on the economy, which is important, but on workers.

We must be innovative in how we address this issue. Mr. Hickey hinted at one way we could address the issue of fuel smuggling. There is no doubt that we need to deal with the criminal element of this. I agree with intensifying inspections and the introduction of more punitive penalties and so on. However, perhaps harmonisation of taxes across the island could also be considered. Working with our counterparts in the Assembly in the North we could pull the rug from under those people engaged in fuel smuggling. As also mentioned by Mr. Hickey, while we need to address the issue of supply and sale we also need to address the issue of demand, which is a big issue. There are people who will buy illegal goods, including cigarettes and other contraband items.

As was said, they do not make the connection between what they are doing and building criminal gangs, criminal empires and all that goes with this. In the view of Mr. Gleeson and Mr. Hickey, what more could be done to increase awareness of this issue which is critical? I agree on all of the measures we need to put in place to deal with the criminal gangs, the sale and distribution of goods, but reducing the demand is also as important, if not more so. We see this, for example, in the case of DVDs, on which a message is played at the beginning. Work is being done, but more could be done. Will Mr. Gleeson and Mr. Hickey comment on the issue of reducing demand, as well as dealing with the supply side?