John O'Mahony (Mayo, Fine Gael)
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I thank the Ceann Comhairle for selecting the topic and I thank the Minister of State, Deputy Simon Harris, for cancelling other business to reply to this debate. I also congratulate him on his appointment.

This concerns fuel contamination, which has been happening throughout the west, the midlands and in the Mayo constituency. It involves mixing kerosene into petrol. Kerosene costs 80 cent per litre and petrol is €1.55 per litre and doing this increases the amount of petrol but it destroys the engines of cars more quickly than laundered diesel was doing some years ago.

It has reached epidemic proportions in my constituency over the past number of weeks, as unsuspecting motorists buy fuel at certain outlets. Some people have had more than one engine destroyed and some insurance companies are excluding it from cover or not covering it in new policies that are issued. Almost 400 people attended a public meeting in Swinford, County Mayo on Tuesday. What measures are in place to deal with this? There must be immediate action to identify and eliminate the source of the practice. There must be some help for unsuspecting motorists, some of whom have also had a replacement engine destroyed by this.

A few years ago, there was diesel laundering and legislation was introduced making the amount of green diesel purchased by retailers traceable. When I checked, I found that it is not true for petrol. It would help to eliminate the source of this fuel.

Michelle Mulherin (Mayo, Fine Gael)
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I welcome the Minister of State in his new capacity agus go n-éirí leis. This is a massive problem and it urgently needs attention. There is a crisis of consumer confidence and a crisis of public confidence, particularly in east Mayo where there are numerous cases of petrol stretching. I attended the meeting last Monday, along with 400 people. More than half of them stood up and said they had problems with their vehicles stretching back to July. It is shocking that people can go into the forecourt, get a fill of petrol and find the engine is destroyed. Our local garages are full of these vehicles. I have spoken to several assessors in garages and they listed the various scenarios that arise. They are dealing with insurance companies. We need immediate intervention because I cannot answer the question of where it is safe to buy petrol. Imagine that in this day and age. There is uproar and outrage about the issue.

This falls under the remit of Customs and Excise, which is why the Minister of State at the Department of Finance is present, but there was no one from Customs and Excise at that meeting. The Garda Síochána attended and are trying but this is within the expertise and gift of Customs and Excise. If people's confidence is to be encouraged, we must know we are getting to the bottom of this and that culprits are taken to task.

With regard to the Garda Síochána, there is only one public service vehicle officer in County Mayo and if resources are needed they must be pumped in now. It may not be simple because the fuel is burned off and taking a fuel sample will not help. In any event, a criminal prosecution takes time and victims are seriously out of pocket. It is estimated that only 30% of people are covered by insurance and new cars are clapped-out because of this. Warranties do not cover this and only people with comprehensive insurance are covered. People cannot afford the thousands of euro to fix their vehicles. There must be some scheme for this. Of course, the culprits should ultimately pay but the victims do not have the time or deep pockets of the insurance companies or the State to get to the bottom of this. It needs urgent attention.

Simon Harris (Wicklow, Fine Gael)
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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.

John O'Mahony (Mayo, Fine Gael)
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I raise the issue of the innocent motorists who have been caught out and have incurred significant costs as a result. I ask if there could be some form of engagement with insurance companies on their behalf so these motorists might not be at a disadvantage. The legitimate outlets are paying their taxes and doing everything by the book. I acknowledge the great work of the Customs and Excise service and the Garda Síochána to combat fuel laundering. The independent petrol retailers' association is an independent group with whom I have worked over recent years. The association's members guarantee the quality of fuel sold in their forecourts. They carry out independent testing regularly and their premises are designated by a flag.

A concerted approach is needed from the Customs and Excise service, the Garda Síochána, the Minister and all involved. The issue of fuel laundering was dealt with and the people involved are now moving on to petrol stretching. It will be necessary to weed them out. The traceability of petrol needs to be regarded as a matter to be dealt with urgently.

Michelle Mulherin (Mayo, Fine Gael)
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The Minister will agree that I have described a crisis situation. Confidence must be restored. People are unsure where to buy fuel even though there are reputable dealers. It is not good for business in general. Petrol stations send returns to Revenue every month stating where they source their petrol supplies. What is the Customs and Excise doing about the situation which has been ongoing for a couple of months? If it is a resources problem I ask that it be nailed and resources injected into the service, including the drafting of staff from elsewhere. We cannot ignore the apparent 70% of people who are neither covered by their insurance nor by warranty. I ask what can be done for them. I am aware of people who are unable to afford the several thousand euro to buy a new vehicle and many have been left without the use of a vehicle. The case is similar for new vehicles.

I have attended many public meetings in my area. The main agitators who are throwing oil on the fire are Sinn Féin members but not one Sinn Féin person attended a meeting of 400 people. It begs the question whether Sinn Féin condones the practice. I ask if it could be intrinsically associated with the fact that the IRA has been oft associated with fuel laundering. We know of the very close ties of Sinn Féin with the IRA. I wondered with great interest on the night whether it is condoning what is going on.

Simon Harris (Wicklow, Fine Gael)
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I reiterate my thanks to both Mayo Deputies, Deputy O'Mahony and Deputy Mulherin, for raising and highlighting this issue in the House and giving me an opportunity to outline to the House the seriousness with which the Minister for Finance treats this matter, as does the Revenue Commissioners. The Deputies have both made the point that as well as this illegal activity a significant number of innocent motorists who are going about their business trying to purchase cars and to keep their car on the road, are falling victim to this crime. The practice of petrol stretching is illegal for which a concerted approach is required. I agree there is a role for Revenue and also for the Garda Síochána and the Customs and Excise. There is also a role for the public and this is a message I wish to publicise on behalf of the Minister for Finance. Anyone with information about such activity can avail of at least two fora to convey that information, by means of the Freefone telephone number, to pass on tip-offs anonymously to Revenue on 1800 295 295, or by means of the new section on the Revenue website where it is possible to log electronically any complaints or concerns in this regard.

If either Deputy or any Member or the Revenue Commissioners has ideas for legislative solutions or shortcomings in this regard, the Minister for Finance will treat these very carefully and seriously, as he always does. Petrol stretching is affecting legitimate business at a very difficult time for them. I look forward to a continued engagement with Members on this issue.

Michael Kitt (Galway East, Fianna Fail)
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Deputies Clare Daly, Mick Wallace and Ruth Coppinger have raised the next matter and are sharing time with two minutes each.