Mary Moran (Labour) | Oireachtas source

Diesel laundering has traditionally been associated with the Border, but we know that it reaches into and damages many sectors of society. The practice is moving southwards so it has become a national problem and can no longer be categorised as simply being a Border problem.

Being from County Louth, I would like to speak about how this issue affects the county. Louth has been dealing with diesel laundering for many years and had to bear the large cost. In May 2010, almost 10,000 litres of toxic diesel sludge, the by-product of washing the diesel, was found in four different locations in the county. This cost the county council €10,000 to clean up. Three more diesel laundries were uncovered in October of 2012, one of which could have cost the State €9 million in lost revenue. This raid uncovered 40 tonnes of toxic waste, which is extremely worrying for the people of Louth. I do not want even to imagine the environmental or health ramifications of this toxic waste entering the water system. In 2011, Louth County Council estimated the cost for cleaning up toxic diesel waste was €1 million. There is huge demand elsewhere for this money.

Incidents like those have occurred regularly and have for many years cost the taxpayer and legitimate local businesses. I do not need to go into the facts and figures for the House to know local businesses are struggling, but I find it appalling that it is estimated that one in ten garages is selling laundered diesel. This places a massive burden on the legitimate proprietors and unsuspecting consumers. My husband is in the motor trade and he will frequently get a call at weekends or late at night. The first question he asks is where the person bought their diesel. Depending on the answer, he can tell them what the damage will be to the car. Laundered diesel wreaks havoc on cars, with repairs costing anything between €1,500 to €16,000. In 2012, the Society of the Irish Motor Industry recorded a sharp rise in vehicles experiencing damage due to diesel fuel laundering. We must urge people to remember it is too good to be true if they believe they are getting a great deal on their fuel. The economy is stabilising but we must provide support for legitimate diesel traders and business people. We must allow them to practise unhindered by criminals and not to get a bad reputation on the strength of one unscrupulous garage owner.

I commend the Garda Síochána and the Revenue Commissioners on the recent raids. I spent much of my teaching career in County Monaghan and officials from Customs and Excise were always very efficient when stopping cars. I did not always enjoy being stopped on the way home, but very often they were very efficient. There are, however, many windy roads that cross the Border and it is easy to slip across and back. Each raid and arrest helps to restore another element to the legitimate business undertaken by honest people every day. We must stay vigilant, however, and not allow others to pick up where these criminals left off.

The Government has realised the scale of the problem and produced new orders in the Finance Act 2012. Under the Act, Revenue has further powers to vary the mineral oil licence and introduce a registration scheme for marked oil products, which will assist the Revenue Commissioners in identifying where the laundered fuel is entering the market. Those within the industry have made efforts to complement this legislation by introducing a quality insurance logo to show consumers that the diesel and the retailer can be trusted.

The Revenue, Garda Síochána and customs have detected more diesel laundries in the lifetime of this Government than in the period from 2006 to 2009. The Government has made significant strides in dealing with the problem, as evidenced by previous legislation and the increased number of raids on diesel laundering plants. I thank the Cathaoirleach for his patience.