Seanad debates

Wednesday, 14 September 2011

3:00 pm

Photo of Feargal QuinnFeargal Quinn (Independent)

My attention was drawn to the scandal of imported diesel and the problems it is creating for many people who are in the business of selling diesel. The estimated cost to the State of the contaminated, or washed, diesel is between €100 and €200 million. There are 35,000 litres in a tanker of diesel. The profit from a full tanker, bought legitimately, is approximately €1,500. However, the profit from a tanker of imported diesel, without VAT being paid on it, is approximately €16,000. This should be a huge concern for the State. It is certainly a huge concern for those who are in competition with this diesel anywhere in Ireland. The imported diesel is agricultural diesel that has had the dye washed out of it so that it looks like normal diesel.

I was delighted to see last week that the Garda had arrested four garage owners. I was pleased that attention was being drawn to the problem and that something was being done about it. However, my attention was then drawn to the fact that one garage owner, not one of those arrested on this occasion, had been fined €3,500 and was instructed to close for 24 hours. Some garage owners who have been instructed to close for 24 hours are open again within 24 hours. The cost to the State is huge and the cost to individual garage owners who are trying to compete with this activity is such that it is making a mockery of legitimate trading in Ireland.

How does one solve the problem? I was interested to hear the Northern Ireland Minister talk this morning on the BBC about the difficulty this is creating north and south of the Border. He mentioned the removal of the dye by washing agricultural diesel. The answer would appear to be to allow farmers to buy normal diesel and make a subsequent claim for the amount they use for agricultural purposes. I am sure the problem is not easy to solve but this is certainly a better solution than the one being used at present.

I call on the Minister for Justice, Equality and Defence to have an investigation into this matter and to see how we should handle the problem. It is clearly a huge scandal, it is bringing the law into disrepute and it is a huge cost to the State.

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