Written answers

Tuesday, 2 December 2014

Department of Finance

Petrol Stretching

Photo of Michelle MulherinMichelle Mulherin (Mayo, Fine Gael)
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172. To ask the Minister for Finance further to Parliamentary Question No. 69 of 2 October 2014, the number of new complaints of petrol stretching in County Mayo that the Customs and Excise Service has been investigating in each month since June 2014 to date in 2014; the position regarding current investigations; and if he will make a statement on the matter. [45780/14]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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209. To ask the Minister for Finance the number of inspections undertaken by either the Customs and Excise service or the Revenue Commissioners of fuel delivery tankers in the country between 1 June and 31 October 2014; if he will provide this information on a county basis and by location of inspection; and if he will make a statement on the matter. [46160/14]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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210. To ask the Minister for Finance the number of inspections undertaken by either the Customs and Excise service or the Revenue Commissioners at fuel import centres or distribution centres in the country between 1 June and 31 October 2014, if he will provide this information on a county basis and by location of inspection; and if he will make a statement on the matter. [46161/14]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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211. To ask the Minister for Finance the action undertaken by the Revenue Commissioners and by An Garda Síochána since the launch of their joint task force to address the petrol stretching issue; and if he will make a statement on the matter. [46162/14]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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212. To ask the Minister for Finance his plans to restore consumer confidence in the motor fuel sector in view of the ongoing petrol stretching problem; his views on introducing testing of petrol, diesel and other fuels at the point of import as well as at the point of sale; and if he will make a statement on the matter. [46163/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 172, 209 and 210 to 212, inclusive, 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.

Every Filling Station about which a complaint was made has been visited by Revenue Enforcement officers and samples were taken for analysis by the State Laboratory. A total of 175 samples of petrol from Filling Stations and other sources have been taken for analysis following checks conducted from June 2014 to date. The scientific analysis required is complex and time consuming and the State Laboratory has conducted extensive tests and re-tests on the samples. Normally, when fraudsters attempt to "stretch" petrol, they add methanol, kerosene or other low excise duty agents. Despite extensive testing by the State Laboratory, no evidence of the presence of methanol, kerosene or any other known prohibited stretching agent has been found in any of the samples, except two samples taken from one site on the eastern seaboard. The conclusive results received in that particular case has resulted in seizure of the product, closure of the facility and a file is being prepared for prosecution.

Following a series of further tests conducted by the State Laboratory, results have been received in recent days which indicate the presence of traces of road diesel in several samples taken from a variety of locations (including Co Mayo) during August and September. This could indicate that petrol was contaminated with road diesel at some point in time. There is no rational economic reason or fraudulent incentive for anyone to deliberately mix normal road diesel with petrol. This contamination could have taken place earlier in the summer, well ahead of the problems manifesting themselves in cars in Co Mayo and elsewhere.

If the problems that have come to light were caused by an unintended contamination as a result of diesel being inadvertently mixed into petrol at some point along the supply chain, there would be no Revenue offence involved. However, the Deputies can be assured that the Revenue Commissioners are vigorously investigating the possibility of tax fraud being associated with the identified problems. In any instances where the analysis of petrol samples by the State Laboratory indicates the presence of illegal stretching agents, Revenue will take swift and robust action and pursue prosecutions against offenders where possible.

In regard to the Deputy's question regarding new complaints in Co Mayo, I am advised by the Revenue Commissioners that they have received a total of 19 additional complaints from the public in Co. Mayo since 2 October 2014 (16 in October and 3 in November) with regard to problems relating to petrol quality, and suggestions that these problems are attributable to petrol stretching.

The Revenue Commissioners are continuing their investigation in conjunction with An Garda Síochána. The investigation includes sharing of information and intelligence and intensive monitoring of the situation.

Revenue are continuing to sample suspect fuel and to challenge fuel delivery tankers when encountered by Enforcement officers particularly throughout the Border Midlands West Region. No cases of contaminated petrol have been identified as a result of these checks from June 2014 to date. In Co Mayo 6 fuel delivery tankers were stopped and inspected during the month of October. In the time available it is not possible to provide national figures.

In regard to the Deputy's question regarding fuel import and distribution centres, I am advised by the Revenue Commissioners that such centres must be approved by them as Authorised Warehouses. Once approved, an authorised warehouse-keeper is at all times responsible for the duty on all oil products in the warehouse and must ensure that the oil in the warehouse is safeguarded and properly and fully accounted for. Revenue maintains a permanent presence of control staff at the main Mineral Oil import depots throughout the country. These officers engage on a daily basis with the authorised warehouse keepers and industry personnel on all compliance matters relating to oil, supervision of warehouse activities, approval of warehouse requests, accounting for excise duties and VAT, accounting for Customs duty, provision of statistics, and generally ensuring compliance by the various oil companies with relevant Revenue regulations.

In addition, as part of its routine compliance work Revenue actively monitor the mineral oil sector through analysis of monthly Return of Oil Movements and supply chain data. Any anomalies or breaches of Regulations detected are fully investigated as a matter of course.

I am further advised by the Revenue Commissioners that the main mineral oil distributors take daily samples of imported fuel on which they carry out quality assurance checks. I have no plans currently to introduce testing at point of importation but I will of course keep the matter under review.

I wish to assure the Deputy I am satisfied the Revenue Commissioners are taking all possible actions to identify the problem and challenge any instances of identified fuel fraud including, where possible, pursuing prosecutions against offenders.

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