Seanad debates

Thursday, 23 May 2013

Diesel Laundering: Statements

 

12:05 pm

Photo of Brian Ó DomhnaillBrian Ó Domhnaill (Fianna Fail) | Oireachtas source

Tá lúchair orm an deis seo a bheith agam labhairt ar an ábhar seo.

The Minister of State will note there is cross-party support for Government efforts to deal with diesel laundering. The trade in illicit products, from fuel and tobacco products to alcohol, is a scourge on society. Fuel laundering has become rampant, in no small part as a result of increases in fuel prices. I welcome the advances made by the Revenue Commissioners. While we are sometimes critical of the Revenue in certain areas, it enjoys the full support of the Oireachtas and citizens in gathering intelligence and taking on the criminals involved in fuel laundering. Recent successes include raids on a fuel laundering plant in County Monaghan and a number of arrests in Dublin. Diesel laundering is also taking place north of the Border, including south Armagh.

I understand the annual cost of diesel laundering to the taxpayer is between €120 million and €150 million, although the figure could be much higher. This activity also has consequences for consumers who purchase laundered fuel in the belief that they are getting value for money. While they may be able to buy fuel at a lower price than that available at legitimate fuel suppliers, I know an individual in County Donegal who had the engine of his car wrecked as a result of buying laundered diesel.

Fuel laundering is a scourge. Former paramilitaries who were involved in so-called republicanism and loyalism in the past are involved in it. These people are what I would describe as "financial republicans" and, as I am sure Sinn Féin Senators will agree, they deserve to face time in jail for stealing from citizens revenue that would be otherwise used to fund critical health services, services for people with disabilities and so forth. Diesel laundering is an unacceptable activity.

Against a background of rising fuel prices on the legitimate market, Revenue must be fully supported in its efforts to thwart the sale of cheaper laundered diesel. Additional steps must be taken and I am aware that proposals have been made following consultations between Revenue and Her Majesty's Customs in the North. These are being considered in the Department of Finance and include the option of refusing to provide rebates unless paperwork is provided. It is likely that some changes will be introduced as a result of the consultations. Perhaps consideration will be given to Senator Harte's proposal that farmers be allocated a supply of cheaper diesel calculated on the basis of their activities or consumption the previous year, with additional amounts above a certain threshold to be provided only where further paperwork is produced. All options should be on the table given the amount of money and criminality involved in the business and the manner in which the crime of diesel laundering has escalated in recent years. A joined-up approach should also be taken to the trade in illicit tobacco and alcohol. Large containers of alcohol from France are making their way via Belfast to stores in the Republic and causing all sorts of social problems.

The Government deserves the support of the Oireachtas in dealing with this issue. I look forward to the public consultation. Perhaps the Minister of State will provide a timeframe for the completion of the consultations. Perhaps he did so in my absence for part of this important debate, for which I apologise. Unfortunately, I had to attend another meeting.

Senator Jim D'Arcy has raised the issue of fuel laundering on many occasions. The trade in illegal fuel must be stopped. The Judiciary has a responsibility to ensure that those who are brought before the courts for engaging in diesel laundering face the full rigours of the law. They deserve to spend time behind bars because the gravity of the crime merits a serious custodial sentence. There would be no fuel laundering in an ideal society but we do not live in an ideal world. As such, we must try to keep the escalating problem of diesel laundering to a minimum.

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