Denis Naughten (Roscommon-South Leitrim, Independent)
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6. To ask the Minister for Finance further to the meeting between Teachtaí Dála, the Minister of State and senior officials, the progress, to date, on investigations into petrol stretching; and if he will make a statement on the matter. [12950/15]

Denis Naughten (Roscommon-South Leitrim, Independent)
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It has come to my attention that only about a third of the reports of petrol stretching that have been given to An Garda Síochána have been recorded by the Revenue Commissioners. Even though I have highlighted this discrepancy before, nothing seems to have happened. It raises the question of the priority the Revenue Commissioners are giving to the issue of petrol stretching, in light of the devastating impact it is having on families and individuals who have had their vehicles destroyed.

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to consumers' vehicles, legitimate businesses and the Exchequer by all forms of fuel fraud. The Revenue Commissioners have, since last summer, received reports from a variety of locations around the country of problems relating to petrol quality, and suggestions that these problems are attributable to petrol stretching. Petrol stretching involves the illegal addition of a low-tax commodity to petrol, and the motive of the criminals who engage in this activity is to profit from the sale of adulterated petrol, thereby defrauding motorists and the State.

The Revenue Commissioners have received 141 complaints to date, the majority of which originated in its Border, midlands and west region. Every filling station about which a complaint was made has been visited by Revenue Commissioners enforcement officers and fuel samples taken from them have been sent for analysis to the State Laboratory. In total, 345 samples of petrol from filling stations and other sources have been referred to the State Laboratory. The scientific analysis required is complex and time-consuming, and the State Laboratory has conducted an extensive series of tests and re-tests on the samples. Despite this extensive testing, evidence of the presence of prohibited stretching agents has been found in only two samples, both from one location. The conclusive results received from those tests have resulted in the seizure of the product, and files are being prepared with a view to prosecution.

Following a series of further tests conducted by the State Laboratory, results were received which indicate the presence of traces of road diesel in several samples taken from a variety of locations. This could indicate that petrol was contaminated with road diesel at some point in time. There is no rational economic reason or fraudulent incentive for anyone to mix normal road diesel with petrol. If the problems that have come to light were caused by unintended contamination as a result of diesel being inadvertently mixed with petrol at some point along the supply chain, there would be no Revenue offence involved. However, the Revenue Commissioners are investigating vigorously the possibility of tax fraud being associated with the identified problems. In any instances where the analysis of samples by the State Laboratory indicates the presence of illegal stretching agents in petrol, Revenue will take swift and robust action and pursue prosecutions against alleged offenders where possible. They have been working closely with An Garda Síochána on this matter, and will continue to do so.

Denis Naughten (Roscommon-South Leitrim, Independent)
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The fundamental problem here is that because there does not seem to be a loss to the Exchequer, it is not really an issue for the Revenue Commissioners. In my constituency and the adjoining counties we have families that have had two cars destroyed. In some cases, the replacement car has also been destroyed by this practice. Something serious went on here. The Minister has said 141 cases have been reported to the Revenue Commissioners. Close to 400 cases have been reported to An Garda Síochána, and we were advised by the Revenue Commissioners that if the information was given to the Garda it would then be passed on to the Revenue Commissioners. How can Revenue get to the source of the problem when up to two thirds of the reports that have been made have not actually been investigated by it? Will it not make it far more difficult to identify the source of the problem?

Even though there may not be a loss to the Exchequer, will the Revenue Commissioners act in the interests of the motorists who had their vehicles damaged and try and source where this fuel came from in the first place, whether it is diesel or some other contaminant?

Michael Noonan (Limerick City, Fine Gael)
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We must distinguish between what may have occurred as a result of negligence and what may have occurred as a result of fraud. In the test carried out by the Revenue Commissioners in the State Laboratory, 345 samples were tested.

Only in two samples is there clear evidence of petrol stretching as defined. There is no economic point or any economic advantage in mixing diesel with petrol, yet in many of the samples the petrol is contaminated by diesel. That is not petrol stretching. Something happened in the supply chain which caused the adulteration or the contamination, but there is no profit margin or motive in that. Revenue are examining to see if there is some kind of connection with tax, but it is not quite clear that there is a connection.

There is no doubt that something happened and that damage was caused to many individuals' cars, but there is not evidence that there was widespread petrol stretching as defined. There was wide spread contamination of petrol, but with diesel and not with a low-excise product to allow profit.

Denis Naughten (Roscommon-South Leitrim, Independent)
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I accept what the Minister says. The fundamental problem, however, is that because the Minister believes there is not fraud involved, it is not an issue for the Revenue Commissioners.

Michael Noonan (Limerick City, Fine Gael)
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I never said that.

Denis Naughten (Roscommon-South Leitrim, Independent)
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The difficulty is that, at the very minimum, negligence is involved. Vehicles have been damaged. Families have been decimated economically by this action. The culprits need to be identified. If it is negligence, the car owners are covered by insurance and the insurance companies should kick in here. However, if the Revenue Commissioners have only received one third of the reports that have been presented to the Garda Síochána, how can they identify the source of this?

I ask the Minister for an assurance that the Revenue Commissioners will do everything possible to identify the source of the contamination, whether caused by negligence or fraud. If the information cannot be used for a criminal prosecution, this information should be made available for a civil prosecution.

Why are there two completely different standards for the recording of the deliveries of petrol fuel and diesel fuel? If these recording systems were similar, it would have been much easier to identify the source of the problem and ensure people were adequately compensated.

Michael Noonan (Limerick City, Fine Gael)
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I do not have the data to which the Deputy refers. It is news to me that complaints have been made to the Garda Síochána about petrol stretching which have not been passed on to Revenue.

Denis Naughten (Roscommon-South Leitrim, Independent)
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I have raised it previously in the House.

Michael Noonan (Limerick City, Fine Gael)
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The Deputy has raised it, but if he has a file on it ,he might provide it and we will give it to the Revenue Commissioners.

Denis Naughten (Roscommon-South Leitrim, Independent)
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I will do that.

Michael Noonan (Limerick City, Fine Gael)
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We will let the Revenue Commissioners investigate, if there is a way to do so. One of the central points in my reply to the Deputy's question is that if there is no fraud or if there is no intention of fraud, it is outside the legal powers of the Revenue Commissioners. They pursue fraud and criminal offences. If there is no evidence of a criminal offence and if it looks as if there was contamination of a petrol supply by the addition of diesel, where there is no obvious profit motive, that is a different issue and it is not for Revenue-----

Denis Naughten (Roscommon-South Leitrim, Independent)
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Revenue cannot wash its hands of it. Everyone is turning their backs.

Michael Noonan (Limerick City, Fine Gael)
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It is not for Revenue to sort it.