Gerald Nash (Louth, Labour)
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Question 60: To ask the Minister for Finance if, in view of the growing problem of fuel smuggling, the growth in the illicit selling of such fuel and the estimated loss of substantial revenue to the Exchequer, he will review the legislation pertaining to the laundering and sale of such fuel; if he intends to introduce tougher penalties and sanctions under the legislation targeted at those who have been found to be involved in such activities by the courts; and if he will make a statement on the matter. [10896/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners, who are responsible for the collection of mineral oil tax and for tackling the illicit trade in fuel products, that they are conscious of the threat posed by laundered fuel, and that they have undertaken ongoing extensive enforcement action, which has led to the detection of oil laundries and the prosecution of individuals and companies involved. The Deputy will appreciate that, due to its nature, it is impossible to provide a reliably accurate estimate of the extent of any illegal activity. In 2010, four oil laundries and over 288,000 litres of laundered oil were seized. Also in 2010, nine retailers were found dealing in laundered oil, and eight haulage companies were detected using laundered oil. There were four convictions for laundered oil offences. Already, in the period January to 5 May this year, four laundries and 102,000 litres of laundered fuel have been seized. Two retailers and three haulage companies have been detected in respect of laundered oil offences and these cases are being considered for the institution of criminal proceedings.

The laundering of marked fuel, and dealing in and possession of the subsequent product are indictable offences under the following legal provisions:

Removal of a marker from marked fuel ("oil laundering"), dealing in laundered fuel, and keeping laundering equipment (section 102(3) Finance Act 1999).

Dealing in any illicit fuel (section 102 (1A) Finance Act 1999 as amended ).

Non compliance with the conditions for dealing in, and with, marked fuel (section 102(1B) Finance Act 1999 as amended ).

The last two provisions were introduced, in 2007 and 2011 respectively, in response to particular aspects of the illicit fuel problem. The penalty on summary conviction for these offences is €5,000 and/or a term of imprisonment not exceeding 12 months. The penalty on conviction on indictment is fine not exceeding €126,970 or a prison term of up to fine years, or both the fine and the imprisonment. It is worth noting that the latter penalty amount was introduced in the Finance Act 2010 and is a considerable increase on the previous penalty of €12,695.

Of course, as the Deputy is aware, the precise penalty imposed on conviction in each individual case is solely a matter for the Courts. These offence and penalty provisions will remain under review. I do not propose, however, to make a further increase to the level of penalties until the effectiveness of the most recent increases can be assessed.