John O'Mahony (Mayo, Fine Gael)

I thank the Ceann Comhairle for selecting this important topic. I have raised the issue of fuel laundering and fuel abuse on many occasions. Fuel smuggling and fuel laundering has been a problem here for many years but since the beginning of this year in particular when the sulphur content in off-road diesel was reduced, which made it much more difficult to detect illegal fuel, it has reached epidemic proportions.

The extent of the problem was illustrated when one of the fuel laundering operations uncovered this year was believed to be making a profit of €100,000 per week. Between 2005 and 2011 I understand nine illegal operations were uncovered. Up to June this year five were uncovered and I believe there have been more uncovered since then. One uncovered had the capacity to launder up to 18 million litres per annum, with a loss to the State of €9 million.

The question also arises as to how this fuel finds its way to the public. It is being sold in service stations that are rented on short-term leases. With a duty difference of almost 40 cent per litre, up to €15,000 per tanker is being made by these illegal operatives. These operations have been taken over essentially by criminal elements that have moved from the drugs trade or other criminal undertakings but the effects on the people who are upholding the law, paying their taxes and giving employment is that hundreds of jobs are being lost in the legitimate industry as a result of this activity.

The solutions to this problem are a detection method; a DNA tracer to be put in place; and an audit trail to find out where the fuel is being bought and to whom it is being sold.

In regard to fines and penalties, an issue arose this year where a garage was closed for one day and fined €3,000. If these people are making €14,000 a tanker that is not a very punitive sentence.

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