Heather Humphreys (Cavan-Monaghan, Fine Gael)

I welcome the opportunity to speak on the Motorist Emergency Relief Bill 2012. There has been a sharp rise in the cost of fuel in recent times largely due to external factors such as the price of oil internationally. This is not a new phenomenon, however, because it has always been inevitable that if the price of a barrel of oil went up the cost of petrol and diesel would follow suit. This is exactly what has been happening in recent times mainly due to political tensions in the Middle East and North Africa and the potential for disruption in supply as a result of these conflicts.

The excise rates for petrol and diesel were increased in December's budget following the increase in the carbon charge for those fuels from €15 to €20 per tonne. This represents an increase of less than 1.5 cent per litre for petrol and slightly over 1.5 cent for diesel. As the memorandum of understanding with the troika, which the previous Fianna Fáil-led Government signed the country up to, commits us to a carbon tax increase, these increases were unavoidable.

It is ironic that after 15 years of inaction while in government Fianna Fáil has now decided to raise the issue of the fuel market. It was not as quick to act on the long running problems of fuel laundering and washed diesel which became rampant during its tenure in office. My own constituency of Cavan-Monaghan is probably the region that is worst affected by these problems. It is for this reason that Monaghan County Council was called before the Joint Committee on the Environment, Transport, Culture and the Gaeltacht earlier this year. Over the period from 2004 to January 2012 Monaghan County Council has dealt with over 150 separate incidents of diesel wash dumping. These incidents require the involvement of the fire brigade, specialist contractors, environmental staff from the council, the Garda and the Customs and Excise. The end result is clean-up costs amounting to over €1.5 million.

If this amount of fuel is being washed it is obvious that a considerable amount of illegal fuel is entering the market. The haulage industry has been severely affected as a result of these high levels of fuel laundering. I have met a number of representatives from the haulage industry, both locally and nationally, on this matter. In February a meeting was arranged with the Minister for Finance, officials from the Department of Finance and representatives from the Irish Road Hauliers Association. Following the meeting a special working group was established to examine the matter and to find a workable solution to this problem and other issues relating to the haulage industry. I am a member of the working group, which has met on a number of occasions since our initial meeting in February. Our meetings have been very useful in terms of permitting frank discussions and an exchange of ideas aimed at finding a workable solution. I acknowledge the commitment and work of the representatives of the Irish Road Haulage Association in this regard.

While there is no quick fix solution to this problem the will now exists to combat fuel laundering. This will has been sadly lacking in the past. In this regard, I welcome the changes introduced by the Minister for Finance in the Finance Act, which will provide for more effective controls in the fuel market. Under the new arrangements persons dealing in marked fuel will be required to hold a licence. The granting of this licence will be subject to tax clearance requirements and Revenue will have the power to revoke a licence if any condition is breached. The requirements for record keeping will also be strengthened and traders will have to make regular returns detailing their fuel transactions. The penalties for those found to be involved in fuel laundering have also significantly increased.

Revenue is in talks with the UK authorities regarding the marking of diesel and is looking to go to market shortly to seek a new marker. The big issue with regard to enforcement in fuel smuggling is traceability and it is clear that steps need to be taken to ensure greater traceability in the fuel market. The introduction of a new marker would be a welcome start in this regard.

These positive steps have been taken by the Government since it entered office in order to curtail the level of abuse that is ongoing in the Irish fuel market. It is not right that legitimate, law abiding fuel retailers are struggling due to the fact that those engaging in illegal activity have an unfair advantage and I strongly support any measure that will provide Revenue with sharper teeth in policing this area. At the end of the day, a legitimate fuel market will ultimately lead to a fair price for both the retailer and the consumer.

It goes without saying that we would all prefer for the price of fuel to be cheaper but if the Government were to reduce the excise duty on petrol and diesel by 4 cent per litre, as this Bill proposes, where does Fianna Fáil expect that shortfall in revenue to be recovered? The Minister stated earlier that Fianna Fáil is living in an economic dreamland with regard to its proposal. It is about time it woke up. The reality of the situation is that the Government is working within extremely difficult financial constraints as a result of the irresponsible budgetary measures introduced while Fianna Fáil was in power. Unfortunately it appears that the party has not learnt from the mistakes of the past. I will not be supporting this Bill.

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