John Perry (Sligo-North Leitrim, Fine Gael)

In addition to the ongoing enforcement action, legislative changes that will enable more effective control in this sector have been included in this year's Finance Bill. They include the introduction of new licensing requirements for marked fuel traders. The new arrangements will, for the first time, require any person dealing in marked fuel to hold a licence for the purpose. The granting of a licence will be subject to tax clearance requirements and the applicant will have to show to Revenue that any conditions subject to which the licence may be granted will be complied with. Revenue will be empowered to revoke a licence. In parallel with the introduction of this new licensing system, the regulations that lay down the detailed rules and requirements in mineral oil matters are being reviewed. It is intended that the requirements for record keeping will be strengthened and that a new requirement to make periodic returns to Revenue will be introduced. All mineral oil traders, including traders in marked fuels, will have to make regular returns.

Steps are being taken, in close co-operation with the British authorities, to acquire a more effective fuel marker. Revenue is planning to go to the market shortly, with the British authorities, to seek a new marker. A good deal of preparatory research has been undertaken both here and in Britain and we expect to proceed with this project shortly.

The problem of fuel laundering and smuggling is a serious one and the extensive enforcement action being taken on an ongoing basis highlights Revenue's commitment to combat it. The new legislative steps being taken, together with the work being done on the development of a more effective fuel marker, will serve to enhance the effectiveness of this action.

With regard to alleviating the problems being experienced by the haulage industry, a working group was set up involving officials from the Department of Finance, representatives of the Irish Road Haulage Association, IRHA, and some Members of the Oireachtas. This working group is discussing a number of issues of concern to the haulage industry, and the Deputy will understand that I cannot pre-empt the outcome of those ongoing discussions. A fuel rebate system, as sought by the IRHA, could not under EU law be restricted to Irish licensed hauliers but would have to be extended to all vehicles intended exclusively for the carriage of goods by road, with a maximum permissible gross laden weight of not less than 7.5 tonnes. In addition, the rebate would have to include the carriage of passengers by a motor vehicle of category M2.

My final point relates to the gain of €64 million. The amount of money lost to the Exchequer as a result of fuel laundering is considerable, in excess of €250 million per year, and the Government is very conscious of that and the need to deal with it effectively. The gain is in excess of €1 million per week due to the increase in VAT, not in excise. The IMF restrictions and the fact that we are borrowing €41 million per day to run the economy show the scale of the challenge currently facing the Government. Any income to the Exchequer at present is being spent in a very effective way on behalf of the taxpayer, but we are under immense pressure to secure tax take at present. However, I accept the point made by the Deputy.

The Government is being very decisive on the fuel laundering issue. It is also conscious of the cost of doing business and the importance of lowering those costs. Being from a business background, I am aware it is important to reduce costs for people in the delivery trade. Hauliers are under huge pressure at present. The job of the Government is to reduce the regulatory and other costs of doing business and the Minister for Finance is very conscious of that in all the actions he takes that impact on the creation of jobs.

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