John O'Mahony (Mayo, Fine Gael)

I thank the Ceann Comhairle for selecting this matter. I also thank the Minister for Communications, Energy and Natural Resources for being present in the Chamber to hear what I have to say.

Everyone is aware of the fact that fuel prices have been spiralling upwards. This matter affects every citizen, business and industry, especially the haulage industry, in the State. I am aware that there are no easy solutions in respect of the problem of rising fuel prices, especially as Ireland is powerless to influence international oil prices. I am not, therefore, raising this matter from the point of view of having a go at someone. I am, however, convinced that we have passed the point of diminishing returns as far as rising fuel prices are concerned. This was confirmed yesterday by the Irish Petrol Retail Association which indicated that there has been a decrease of up to 10% in fuel sales. This is because people are reducing their level of travel, which might be no bad thing in one sense. We need, however, to stimulate businesses, including those of taxi drivers and hauliers, industry and our transport services.

It should be noted that when fuel prices increase, the Exchequer takes an increased percentage. A system was implemented in the UK under which, as prices increase, the percentage taken by Her Majesty's Revenue and Customs is adjusted in order that Treasury would take in the same rather than a larger amount.

I accept that resources are scarce. In that context, I wish to raise another issue that has been brought to my attention by a number of legitimate oil distributors in recent weeks. The latter have indicated to me that there has been a massive increase in the laundering of marked gas oil from the North which has found its way across the Border. This issue has not been brought to the attention of many people but I have contacted various Ministers and the Revenue Commissioners in respect of it. On 1 January last the specification used for off-road transportation was changed from 1,000 parts per million, ppm, of sulphur to 10 ppm. In effect, this means that it is more difficult to detect diesel which has been washed. As a result, this fuel can get through the system.

Once the dye marker is removed, the relevant test will not show a fuel to be a marked product which is supposed to be sold with a duty rebate. The type of product to which I refer is being sold through service stations that are leased on a short-term basis by the distributors who are purchasing it. The duty difference is 37.84 cent per litre and this gives rise to a loss of €14,380 in excise duties on a standard truckload of fuel. Most of this trade is conducted by subversive elements which are located in the Border area and which have a great deal of experience in chemistry.

A simple and quick solution in respect of the matter to which I refer would be to require all oil distributors to leave marked gas oil with the dye intact and to require a separate registration for each distributor to claim back the rebate of duty. Those who register would be obliged to meet certain criteria, such as the provision of tax clearance certificates, submission to inspections and the provision of information relating to gas oil sales. Duty could be refunded weekly. If the approach to which I refer were adopted, the problem that exists could be wiped out overnight.

A solution such as that which I propose would not cause any reduction in revenue to the State. It would, however, ease the burden on hard-pressed motorists, businesses and hauliers. A jobs initiative is due to be announced in the House next week and we want to make it less costly for businesses to operate. I am trying to be constructive with regard to that matter and, as a result, I suggest that there is a ready-made solution available in the context of adjusting fuel prices in so far as is possible, ensuring that all distributors are operating legitimately and obtaining the revenue that is due to the State. I look forward with interest to the Minister's reply in respect of this matter.

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