Paul Bradford (Independent) | Oireachtas source

I welcome the Minister of State and the consolidation Bill he has proposed to the House. It is very interesting to reflect on the proposals being repealed. It shows the history of regulation in the customs area, from the Smuggling Act 1805 and subsequent legislation in 1807 up to the present day. Consolidation of the legislation is necessary. However, reflecting on what needs to be repealed reminds us that customs, barriers to trade and control of imports and exports have been a feature of world economic activity or non-activity for hundreds of years. We must all welcome the Bill.

I noted from the Minister of State’s opening speech that, in the lingo of our administrative masters, it is another significant milestone in the Revenue Commissioners’ comprehensive programme to consolidate and modernise our tax and duty legislation. When the public at large hear such a reference, they will be reminded of what Ronald Reagan deemed to be the most feared words in the English language, namely, "I'm from the government, and I'm here to help." Notwithstanding that, I welcome the legislation.

I have one or two observations which may be relevant. Section 28 concerns the power to examine goods, which is a necessary power. We are advised that a customs officer may examine goods that have been imported where he or she considers that there are grounds for certain suspicion. I might be on the wrong page, dealing with the wrong legislation or even addressing the matter to the wrong Minister. Reference has been made to smuggling, fuel laundering, petrol stretching, which is the new lingo, and diesel laundering. I have been asked by a number of persons in the trade to pose the question of why it is possible for a motorist driving a diesel car to be stopped by the Garda or customs officers so that they can check whether the appropriate diesel is being used. I do not think we can object to that, but it appears that such inspectors are not able to visit a fuel depot or filling station to sample the product stored on the premises. Perhaps I am incorrect, but the argument has been presented to me that while an inspector can sample diesel in a car tank, he or she cannot sample diesel in a filling station. If that is correct, could such a power be granted under section 28? Could the Minister of State clarify the position? It might have been clarified already for him.

The broader aspects of the Bill cause us to reflect on the fact that we have moved significantly over the past 30 to 40 years to a Europe of very free trade. We are progressing in some ways towards a world of even more free trade. Once we reach a better destination in that regard, customs and trade barriers will become less of a problem. We must also be cognisant of the debate that will take place in the United Kingdom in the next 12 months or two years on its relationship with the European Union. It is quite frightening to think of what might be the case along the northern borders of this island if the UK exits the European Union. One must pose the question of whether we will again be facing customs controls and Border checkpoints. It is so much in our interests economically and politically that the UK remain in the European Union. We are discussing the need for consolidation and progress in terms of our customs legislation, yet, from a North-South perspective, if the UK leaves the European Union, which hopefully it will not, the question of customs control will be very much back on our agenda. There is an obligation on all of us to ensure in particular that the sizeable Irish electorate in the United Kingdom who will vote on this referendum next year or the following year are very much aware of what a negative impact it would have on the economy of this country and the entire North-South project if Britain were to leave the European Union.

Senator Hayden presented an interesting figure in terms of staffing levels - namely, that there are 2,000 people, all of whom are no doubt busy. It must cause us to focus a little on the general cost of administration of taxation, with 2,000 people in the customs service, the people in charge of calculating, arguing and collecting property taxes, local authority motor taxation staff, those involved in collecting water charges and people checking for compliance with television licence regulations. Many of our taxation measures are hugely expensive to monitor and administer. If we drew up a balance sheet and came up with the cost of collection compared to the revenue that accrues, we would conclude that we must consider ways of introducing smarter taxation. The obvious one is motor tax, but that is a debate for another day. According to Senator Hayden, 2,000 people are employed in the customs unit. I am sure they are all very busy, but we must focus on the balance between the cost of administration and income generated.

The Minister of State might be able to answer my question. The question on diesel laundering might not be a valid one. I welcome the consolidation legislation, which is obviously necessary. Could the Minister of State ensure that the Government remains committed to ensuring that we will not have to reintroduce border controls on this island?In so far as we can play any role in ensuring that the UK remains in the EU, we should do so.