Seanad debates

Thursday, 23 May 2013

Diesel Laundering: Statements

 

11:35 am

Photo of Jim D'ArcyJim D'Arcy (Fine Gael) | Oireachtas source

I welcome the Minister of State back to the House and acknowledge the great work he is doing to deal with this criminal activity, which is a national issue located on the Border. Anyone who thinks that laundered diesel is only sold in the Border counties misunderstands the position. While the plants may be located in or around Border counties in the main, there is a national distribution network of what I believe are small, independent suppliers that are delivering loads of laundered diesel to places as far apart as Tralee, Tipperary and Galway. This criminal activity is extremely difficult to stop because the perpetrators appear to be always one step ahead of the authorities. Activity appears to have lessened thus far this year, however, if one is to go by the amount of diesel sludge dumped in County Louth, which is less than in the comparable period last year and substantially less than the peak levels experienced in 2011.

It might be useful to read out some statistics from 2005 to 2012 on diesel sludge recovered in County Louth. The tonnages recovered in 2005, 2006, 2007, 2008, 2009, 2010, 2011 and 2012 were 157 tonnes, 149 tonnes, 69 tonnes, 125 tonnes, 71 tonnes, 186 tonnes, 868 tonnes and 615 tonnes, respectively. These figures provide Members with a picture of how this criminal activity has been developing.

Finds of diesel sludge are down a little this year. This time last year there were 272 tonnes of diesel sludge and there are 241 tonnes this year. The increase is due to the 90 tonnes discovered in Carrickarnon at the Border two weeks ago. That is a well-known dumping place for diesel sludge. We might treat the statistics and the recent reduction with a little caution as the launderers might have found a new way to dispose of sludge. The activity increased again in May this year. That is not to say there is not great work going on, as the Minister of State indicated, in very difficult conditions by the Revenue Commissioners, the Garda and the Customs and Excise who are very brave people who confront this criminal activity fearlessly and rigorously.

I concur with the Minister of State’s welcome of the discovery this week in Drumcahon, Castleblaney. The diesel laundering plant there resulted in an estimated €8 million in lost revenue to the State each year. Enforcement is an important part of the fight against laundered diesel. I again pay tribute to those who work in enforcement.

The Minister of State referred to the new licensing regulations. In the coming months he will be able to track all diesel movements and identify who is legal and by a process of elimination who is acting illegally. That is excellent news. I urge the Minister of State to keep us informed of progress in that regard through press releases or other means. It is important that people know what is going on because they are opposed to what is happening.

I would like the new licensing regulations to apply also in Northern Ireland. The Minister of State is aware that I have spoken on the issue with Mr. Danny Kennedy, MLA, Minister for Regional Development. The Minister of State has also spoken with him. Mr. Kennedy is keen to increase the level of co-operation between the two jurisdictions. I hope we can meet soon to further co-operation. Could the Minister of State indicate whether it would be possible to introduce equivalent legislation on laundered diesel in both jurisdictions?

The general opinion on the matter is that the most effective solution is a new marker which would be more difficult to remove. I am aware that scientific research is ongoing and I urge that the priority of the work would be upgraded so that we could finally eliminate this environmental and economic scourge which is costing the State dearly. We do not know the ultimate cost of fuel laundering but it costs the State in excess of €100 million in lost revenue each year. I congratulate the Minister of State on his response to the problem we face and encourage him to keep up the good work.

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