Michelle Mulherin (Mayo, Fine Gael)
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56. To ask the Minister for Finance further to the Topical Issue on the problem of the considerable volume of cases of petrol stretching in the County Mayo area in the past couple of months of 18 September 2014, if he will confirm that he has taken up the issue of financial redress for victims whose car engines have been destroyed on account of contaminated fuel with the motor insurance industry with a view to setting up a compensation fund and also to ensure insurance companies are not slow in honouring their commitments in motor insurance policies; and if he will make a statement on the matter. [38981/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to consumers' vehicles, legitimate businesses and the exchequer by all forms of such fraud. Revenue has made great progress in tackling the problem of diesel laundering over the past three years, and reports now indicate the emergence of another form of fuel fraud, commonly referred to as petrol stretching. This involves the illegal addition of a low tax commodity to petrol to defraud the exchequer and the motorist.

Petrol stretching is an offence under section 102 (IA) of the Finance Act 1999. It carries a penalty on summary conviction of a fine of €5,000 or a term of imprisonment not exceeding 12 months, or both a fine and imprisonment. Where conviction occurs on indictment, a fine of up to €126,970, or a term  of imprisonment of up to 5 years, or both a fine and imprisonment, may be imposed. Revenue will investigate any reports of illegal activity in this area and pursue prosecutions where possible.

I would like to advise the Deputy that the first point of contact for motorists whose vehicles have been affected by petrol stretching 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.