Thomas Byrne (Fianna Fail) | Oireachtas source

Ireland currently faces an epidemic of illegal diesel. There is a huge problem with the sale of illegal diesel, and figures suggest at least 12% of all diesel in Ireland is sold illegally. When one goes to a garage, unless one knows it is wholly owned by one of the major oil companies, one is never 100% certain whether there is some illegal diesel in the tanks. This is not a victimless crime but has many victims. Fuel costs are at record levels, which is a separate but related issue. However, the victims of this crime include the Exchequer, which funds public services, as well as individuals whose cars are seriously damaged because of this activity. This matter has become so serious that in certain towns in the north east, rumours abound that all the garages are to be questioned. These rumours will persist until this problem is tackled and people realise there is no more illegal diesel in the system. I certainly will not make allegations on the floor of the Chamber because I do not have the evidence, but this suspicion certainly exists and public confidence in the market for petrol and diesel, particularly the latter, is at an all-time low. On the one hand, people do not know what is in the product, and on the other, they believe the product they are getting is too dear in any event.

I do not believe there will be a truly competitive market in motor fuels in Ireland until this problem is solved because when one sees a cheap price, one does not immediately or necessarily decide to buy it because it is cheap. While I acknowledge many people do because of the economic situation, others question that price and believe they should be paying a higher price because the fuel in question may be problematic. I believe some major fuel companies are profiteering on the basis of this fear, and that will not be rectified until the problem is solved. They can keep the price up because one feels confidence in going to them, as one is certain the fuel they offer is okay. However, this does not apply everywhere either, because there are even rumours in respect of major brands, of a little tip going in in the middle of the night. Members certainly hear such allegations regularly, and were I to receive any genuine allegations in that regard, I certainly would go to the Revenue Commissioners with them. However, the gangs involved in this activity must be pursued ruthlessly, and Fianna Fáil will give the Government every encouragement to do that.

The system described by the Minister of State regarding the electronic recording of what is coming in and out of the market will be critical. Nothing really will happen until the exact supply chain throughout the country is ascertained. The Exchequer is losing at least €120 million per year, the Minister of State may have had a different figure, but that equates to approximately 5 cent per litre of fuel. This is what this loss is costing motorists in additional taxation. Moreover, Louth County Council, unfortunately, is obliged to pay too much money, and I am familiar, as are Senators Jim D'Arcy, Brennan and Moran, with the costs it must bear in this regard. As I understand it, that money ultimately comes from central government, but it acts as a significant brake on resources and is to put down a criminal racket. The problem is that until the ins and outs of the supply chain and what actually is being sold are known, there will be no confidence anywhere. There is suspicion about almost all garages. For instance, there is a town in the north east in which I am told there are two garages that are wholly owned by a fuel company and people can have confidence in going there. However, I am told there are other garages that are wholly owned by other reputable fuel companies about which one simply cannot be sure. Until these measures are put in place, such rumours and suspicions will continue and there will not be a functioning market in diesel or indeed in petrol. There also is the general criminality associated with the ongoing intimidation, whereby people are being forced into accepting late-night deliveries. This also is taking place and such deliveries are not merely being accepted on a voluntary basis.

Fianna Fáil supports the Government and encourages it to do everything it can to implement these measures. There is a much wider debate to be had about the price of fuel, as people undoubtedly are being ripped off at all levels of the supply chain. I am glad the European Commission is investigating this matter at that level but I believe it must also be investigated on the forecourts. In the Meath East are there are approximately four of what I call motor fuel markets in which the prices are similar. It is highly competitive in one market, is cheaper than most other places nationwide and they are all reputable stations. However, it is not as competitive in other parts of the county. There are reasons for this and they are anti-competitive in nature. However, until the diesel laundering issue is solved and until people can be confident in what they are actually buying, they will be unable to make a judgment about the price. At present, they feel confident about paying a higher price in the hope that the product is good. This is wrong and the public is being ripped off in this regard, even if people are getting a good product.

Fianna Fáil sought a rebate system and proposed that duty rates between agricultural fuels should be equalised, with a rebate for agricultural fuel users. This could save the Exchequer more than €100 million per year, but of course it must be done on an all-Ireland basis. Members are due to meet representatives of the agricultural community later today - I hope I do not miss that meeting as some people consider it to be more important than debates in this House - and they perceive that proposal as entailing more paperwork for the farming community. Nevertheless, something must be done to turn the existing market into a proper, functioning motor fuel market in which people can have confidence in the product and in the price of it.