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

10:30 am

Photo of Michael ConaghanMichael Conaghan (Dublin South Central, Labour)
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Where the report details the impact on jobs in a fragile economy, it draws attention to the significance of what is happening and the absolute necessity to tackle the issue more effectively. It is almost a self-inflicted injury to the economy. I want to put the issue in perspective by asking Mr. Hickey a question about the modern origins and dynamic of smuggling and the financial implications for the country. There has always been smuggling along the Border, but the traditional form of smuggling is now part of romantic folklore. On the origins of the current phase, I am firmly of the view that the key authors were the paramilitaries, including the Provisional IRA. Obviously, the problem has spread, but it is very important to understand the origins of something if one is tackle it and call it by its proper name. Am I accurate in suggesting this is not old style smuggling, that it is qualitatively a different activity that has its origins in a particular time in modern history and involves the contextual presence of paramilitaries who are the parents of this phenomenon? I would like to get Mr. Hickey's angle. If we are trying to tackle something, we have to look at its origins and the dynamic to find whether it has changed. Obviously, it has because other categories of criminal have become involved. It is important that we try to find the original source and understand the dynamic.

I tabled a question to the Minister on fuel laundering and suggested a rebate to farmers on ordinary diesel, for example, would be a much tidier way of dealing with the issue and that it would undermine the dynamic of this category of illegal activity. The Minister's reply was that it would be too expensive. However, the expense involved in not tackling it by new methods is far greater and incalculable in terms of, for example, the increase in crime. I urge the committee to ask the Minister or one of his staff to come to deal with this issue, as there are more clever ways of dealing with the threat. Having a fragile economy is one thing, but these are self-inflicted injuries to the economy. We need to address the issue.

With regard to the figures in the report concerning tobacco, the Revenue Commissioners seem to have a different figure. The Retail Ireland figures seem to range to about 24%, while the Revenue Commissioners have a figure of 14%. It has been mentioned by the Irish Cancer Society that these figures have been deliberately inflated - I am using its language, not mine - or perhaps overstated for a particular reason. Do the delegates have a view on the matter?