Frank Feighan (Fine Gael) | Oireachtas source

I will address the need for the Minister for Finance to ensure all necessary resources are available to the Revenue Commissioners in order to protect the livelihoods of solid fuel traders located near the Border in light of the price differential in the North and the continued threat of fuel smuggling.

I thank the Minister for coming before the House today. I am glad to get the opportunity to raise this issue on what has become an increasingly serious problem for many small businesses operating within close proximity of the Border. In recent weeks, I spoke to businesses and families in north Roscommon and south Leitrim who make their living from the solid fuel trade and who are increasingly worried about real threats to businesses and jobs. There is growing anecdotal evidence to suggest that the solid fuel trade this side of the Border has been affected by a combination of cheaper prices for similar products in the North, and fuel smuggling. To give an example of the current risks posed, a standard truck bringing 20 tonnes of coal from Northern Ireland across the Border without the application of carbon tax can bring a saving of almost €1,200. How can a legitimate business compete south of the Border with such a price differential? That is without even applying the difference in VAT between the two jurisdictions, which would increase the margins further for legal traders. This price differential is also significant when it comes to briquettes and turf because, again, no carbon tax is applied to these fuels north of the Border. This unacceptable situation is not just detrimental to local businesses located in the Border region, but the Exchequer is also essentially robbed of tax income as a result.

In light of these real threats to businesses and jobs, I ask the Minister if he is satisfied that there are enough safeguards in place to protect legal traders this side of the Border. Are we satisfied that there is a fully co-ordinated approach between Revenue, its UK equivalent, the Garda, the Police Service of Northern Ireland, PSNI, and other relevant agencies to crack down on these rogue traders? It goes without saying that we must do everything possible to catch these perpetrators, which are damaging legitimate business. Many of these legitimate businesses are based in rural Ireland and provide vital jobs for local economies. Retail Excellence Ireland, the representative organisation supporting Irish retailers, recently highlighted that €2.35 billion has been lost to the Irish economy as a result of smuggling in general. This is not just to do with fuel. It also says that there is deep concern within the fuel industry regarding the influx of illegal sales. Retail Excellence Ireland has always said that it has received reports that gangs, courtesy of our good road network, are travelling across the country selling illegal fuel.

There is also another sinister dimension to this which could have health consequences for consumers. Retail Excellence Ireland also say that counterfeit coal bags are being used and that these contain coal which is unsafe because it has a higher sulphur content and can, as a result, be explosive. Brexit is highlighted almost daily as another factor creating much uncertainty for businesses along the Border. It is another concern that legal solid fuel traders have to contend with. I cannot over-emphasise the need to eliminate all threats to small businesses based in the Border region. To protect our solid fuel traders we must ensure that the crackdown on fuel smuggling is as rigorous as possible. Otherwise, these traders will be forced to close their doors for good with the loss of many jobs. We simply cannot allow that to happen.