Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Deputies John O'Mahony and Michelle Mulherin for raising an issue that is causing considerable concern to constituents in Mayo. I am pleased to have this opportunity to respond to the issues raised on behalf of the Minister for Finance.

I am aware that the Revenue Commissioners have recently received reports of the alleged stretching of petrol using kerosene or other substances. Any illegal activity of this kind would be a matter of serious concern because of the significant risks to the Exchequer, the threat to legitimate businesses and the damage that can be caused to the vehicles of unsuspecting purchasers of adulterated fuel. Revenue is investigating the matter and is working in cooperation with representatives of the motor industry.

Petrol stretching is an offence under S102(1A) Finance Act 1999 and carries a penalty on summary conviction of €5,000 or at the discretion of the court to imprisonment for a term not exceeding 12 months or both. It is an indictable conviction and the fine is to a maximum of €126,970 and the prison term is to a maximum of five years or both. The public can take steps to protect itself from this activity by purchasing fuel from reputable dealers only. Where an individual is aware of, or has specific information relating to, shadow economy activity, he or she should pass that information to Revenue which will ensure it is sent to the relevant State agency for the necessary action. Such reports specifically relating to fuel fraud or indeed other areas of the shadow economy may be made in confidence to Revenue's free hotline, 1800 295 295.

The Revenue Commissioners review strategies on fuel fraud on a continuous basis and, where it identifies a need for legislative provisions to strengthen the legal framework for tackling illegal activity and protecting legitimate business, the Minister for Finance will consider such proposals very carefully. Action against the illicit oil trade in the period since 2011 has led to the detection and shutting down of 30 oil laundries and to the seizure of some 3 million litres of illicit fuel. In addition, more than 120 filling stations were closed for trading without a licence or for breach of licence conditions. I am satisfied with the progress made by Revenue in tackling fuel fraud and with the excellent co-operation between Revenue and the fuel sector in implementing very significant supply chain controls over the past three years. I am also pleased with the positive feedback from the fuel sector about the positive impact of the measures and the reduced incidence of laundered fuel on the market.

The Minister for Finance looks forward to continued co-operation with the implementation of the new fuel marker and in tackling continuing problems in the fuel sector, including petrol-stretching. I understand that Revenue, as part of the investigation of this illegal activity, is working in co-operation with the fuel and motor trades. The interests of consumers and compliant businesses are best served by them playing their part in combating shadow economy activity by knowing their suppliers and providing information, anonymously or otherwise, to Revenue or to other relevant State agencies on persons involved in the shadow economy. In that regard, Revenue has recently launched a dedicated section of its website specifically on the shadow economy and this includes an electronic reporting facility for anyone who has information about shadow economy practices. I take the point made by Deputy Mulherin about resourcing and the lack of attendance by the Customs and Excise at the meeting. These are matters I will raise with the Minister for Finance and the Minister for Justice and Equality.

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