Niall Collins (Limerick, Fianna Fail)
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To ask the Minister for Finance his actions on tackling illegal fuel laundering; his future plans in confronting the problem; and if he will make a statement on the matter. [54525/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that they are conscious of the threat that fuel laundering poses to legitimate business and the exchequer and that they have adopted a comprehensive strategy to tackle the problem. This strategy includes supply chain controls designed to deny fuel launderers access to marked fuel for laundering and to deny them access to the market for laundered fuel. It also includes close cooperation with Her Majesty’s Revenue and Customs (HMRC) in the UK in relation to the policy response to this problem, including the pursuit of a new more effective marker for rebated fuel. In addition Revenue continues to take robust and effective enforcement action against fuel launderers and others involved in this illegal trade. This action involves close cooperation with An Garda Síochána, the Police Service of Northern Ireland, HMRC and other law enforcement agencies. Measures taken to date include the introduction of a stronger licensing regime for the auto-fuel sector in 2011 and, following legislation in the Finance Act 2012, the introduction of a new licensing regime for marked fuel traders in October 2012. From January 2013 new reporting requirements will also take effect, which require all licensed fuel traders to report their transactions to Revenue on a monthly basis. This supply chain data will enable Revenue to identify suspicious or anomalous activity for investigation.

The measures taken to date by Revenue have already provided the basis for a very effective response; in the past two years approximately two million litres of fuel have been seized, 20 oil laundries have been detected and over 70 filling stations have been closed. In addition, Revenue and HMRC signed a Memorandum of Understanding in May 2012 on a joint approach to seeking a new marker for rebated fuel and issued a joint ‘Invitation to Make Submissions’ (IMS) in June 2012 for this purpose. There was a very good response to the IMS and submissions are now being evaluated. It is planned that this process will be completed by mid-2013.