Pearse Doherty (Donegal South West, Sinn Fein)
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65. To ask the Minister for Finance his views on transport providers providing the Revenue Commissioners with the invoices for purchases of petrol-diesel on a quarterly basis and as a 2,000 litre minimum is achieved for the purposes of the excise rebate. [18878/14]

Michael Noonan (Limerick City, Fine Gael)
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I introduced this scheme in the Finance Act 2013 in order to provide for a repayment to qualifying road haulage and bus operators of a part of the mineral oil tax paid on their purchases of auto-diesel for use in the course of business. The scheme does not apply to sales of petrol.   In order to address the risk of widespread abuse of the scheme, provision was made for certain restrictions on the means by which the auto-diesel concerned may be purchased. Purchases in bulk must be made from a licensed mineral oil trader, and delivered, in a quantity exceeding 2,000 litres, to a premises or place that is under the control of that qualifying road transport operator.

Bulk purchases from licensed mineral oil traders can be verified by reference to the monthly electronic returns that the oil traders are required to make to Revenue. These returns form part of the supply chain controls introduced by Revenue to tackle the problem of illicit fuel, prior to the introduction of the diesel rebate scheme. The return provides an electronic record of the purchases, stock movements and sales of mineral oil each month by licenced mineral oil traders, by oil product type, including bulk sales to customers exceeding 2000 litres. This information can be used to verify electronically claims for bulk purchases under the diesel rebate scheme. A reduction in the minimum bulk purchase requirement for the diesel rebate scheme would require a corresponding reduction in the minimum threshold for purchases to be reported by mineral oil traders in their monthly returns, greatly increasing the number of transactions to be reported in these returns and the related administrative burden on the mineral oil traders.

Purchases by means of a fuel card, approved by Revenue for the purpose of the scheme, also qualify for repayment and there is no minimum requirement on purchases made in this way. A fuel card will be approved where Revenue is satisfied that the fuel card provider will supply it with the information required about purchases of auto-diesel by means of that card. Fuel cards are widely available and are usable across the road network and there are a number of fuel card providers who can supply suitable fuel cards to road transport operators and fuel retailers.

The current purchasing arrangements under the scheme are necessary to enable Revenue to manage repayments to qualifying transport operators while controlling the risk of fraud. I am satisfied that the purchasing arrangements achieve the right balance between making the scheme available to compliant transport operators and allowing Revenue to manage effectively the risk of fraud and I do not plan to change these arrangements.