Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 164 and 165 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 consumers' vehicles, legitimate businesses and the exchequer by all forms of fuel fraud.

Revenue has, over the recent past, received reports from a variety of locations around the country of problems relating to petrol quality, and suggestions that these problems are attributable to petrol stretching. Revenue investigates all complaints of this kind and fuel samples are taken from filling stations and referred to the State Laboratory for analysis where the investigating officers have reason to suspect excise fraud. Revenue is also working closely with An Garda Síochána in a joint investigation of a concentration of complaints in Co. Mayo.

Conclusive results have been received from the State Laboratory in one case which indicate the contamination of petrol through the presence of kerosene. A second positive result for contamination is currently under investigation. To date, no evidence of fraudulently contaminated petrol has been found in other samples referred for analysis.

Petrol stretching is an offence under section 102 (1A) of the Finance Act 1999 and if Revenue's investigations and the analysis of fuel samples by the State Laboratory indicate the presence of illegal stretching agents in petrol, Revenue will take action and pursue prosecutions against offenders where possible.

I am advised by the Revenue Commissioners that the orientation of a Revenue investigation is determined on the basis of a comprehensive evaluation of risk which takes account of all pertinent information. The charging of prices for fuel that are significantly at variance with the generality of prices in a given area is one of many risk factors that they take into account in deciding on the appropriate focus for their investigative work.

With regard to the question of insurance, I understand from Insurance Ireland that each insurer investigates individual cases in relation to damage done to car engines because of petrol stretching, it will be a matter of whether this financial loss is included or excluded under the terms and conditions of the individual contract. I understand that some insurers are paying out on these claims.

It should be noted that any person who has an unresolved insurance complaint can refer the matter to the Financial Services Ombudsman for investigation and adjudication at www. financialombudsman.ie or 1890 88 20 90.