Robert Troy (Longford-Westmeath, Fianna Fail)
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56. To ask the Minister for Finance if his attention has been drawn to the practice of petrol stretching; if his attention has been drawn to the pressure that has been placed on gardaí to resolve a series of issues resulting from this practice; if his attention has been drawn to the financial hardship that has been placed on motorists who through no fault of their own have lost considerable money as a result of this practice; and if he will instruct Garda management to allocate extra resources to affected areas as a matter of urgency. [36094/14]

Robert Troy (Longford-Westmeath, Fianna Fail)
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57. To ask the Minister for Finance if his attention has been drawn to the practice of petrol stretching; if his attention has been drawn to the pressure placed on Customs and Excise to resolve a series of issues resulting from this practice; if his attention has been drawn to the financial hardship placed on motorists who through no fault of their own have lost considerable money as a result of this practice; and if he will ask the Motor Insurance Bureau of Ireland to investigate the matter and ascertain role they may have in compensating affected motorists. [36095/14]

Denis Naughten (Roscommon-South Leitrim, Independent)
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62. To ask the Minister for Finance the steps he is taking to encourage motor insurance companies to assist with the financial cost of replacing engines on foot of petrol stretching; if he will put a fund in place to assist families struggling to meet the cost of repairing vehicles after such damage; and if he will make a statement on the matter. [36020/14]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 56, 57 and 62 together.

I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to the Exchequer and to consumers by all forms of fuel fraud. Revenue has made great progress in tackling the problem of diesel laundering over the past three years and now media reports indicate the emergence of another form of fuel fraud, commonly referred to as petrol-stretching.  This involves the illegal addition of kerosene or some other low tax commodity to petrol to defraud the Exchequer and the motorist.

Petrol stretching is an offence under S102 (1A) Finance Act 1999 and carries a penalty on summary conviction of €5,000 or, at the discretion of the court to imprisonment for a term not exceeding 12 months, or both. If convicted on indictment the fine is to a maximum of €126,970 and the prison term is to a maximum of 5 years or both.

I am advised by Revenue that they are investigating the recent reports concerning petrol stretching and have been in contact with the motor trade in this regard. I am also advised that they have taken samples from a number of filling stations that it has claimed may have been the source of adulterated fuel. These enquiries will seek to establish if there is evidence that kerosene has been added to the petrol being sold by the retailers in question and whether there is evidence to support a prosecution.

Revenue and the oil sector have cooperated very successfully to tackle diesel laundering and I am confident that with this cooperation, and with the supply chain information available to Revenue,  the problem of petrol stretching can also be tackled successfully. In this regard it is essential that petrol distributors report on any reduction in the pattern of legitimate supplies of fuel to the retail trade which may indicate that specific retailers are shifting some of their sourcing to laundered or 'stretched' fuel. 

Motorists themselves should take care about where they source their petrol from, and report any suspicions concerning the source of adulterated petrol that may have damaged their engines to Revenue. Revenue will investigate such reports and pursue prosecutions against offenders where possible. In that regard, Revenue has recently launched a dedicated section of its website specifically on the shadow economy and this includes an electronic reporting facility for anyone who has information about shadow economy practices such as petrol stretching.

A key part of the mineral oil tax regulatory system to protect the Exchequer and consumers is the licensing system that ensures that dealers in mineral oil, including forecourt operators, keep proper records and only source and supply legitimate fuel. At Revenue's request, I have strengthened the legislative framework to refuse and /or revoke mineral oil licences. Revenue has been very pro-active in this sector over the last three years and from mid-2011 to the end of August 2014, 132 filling stations were closed, mainly for breaches of licensing conditions.

I will carefully consider any new proposals by Revenue to ensure that the licensing system is robust and acts to protect consumers, the legitimate trade and Exchequer receipts. 

I would also like to advise the Deputies that the first point of contact for motorists whose vehicles have been affected should be the insurance companies they hold their policies with.   Further to that, those affected should also contact the point of purchase and seek redress through them.  If they remain unsatisfied they may have recourse to civil remedies and as such could seek legal advice.