Michelle Mulherin (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

258. To ask the Minister for Finance further to Parliamentary Question No. 194 of 10 March 2015, the reason there has been such a marked decline in spot checks and the number of samples of petrol and diesel which have been taken from bulk fuel transportation vehicles such that only 24 samples were taken in 2014, notwithstanding widespread complaints by motorists of damage to their vehicles arising out of petrol stretching throughout that year; and if he will make a statement on the matter. [12850/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that acting against illegal activities of this kind is a priority for them. They undertake, on an ongoing basis, an extensive programme of compliance and enforcement actions to ensure adherence to the legal requirements governing the supply and sale of mineral oil and to allow action to be taken against fraud. Among the key elements of this programme are the carrying out of control and compliance inspections at critical points of the fuel supply chain, including visits to mineral oil traders, to check records and take samples, and the checking and inspection of bulk fuel transportation vehicles (involving, from time to time, the taking of fuel samples from such vehicles).

The focus of Revenue's control and compliance actions at a particular point depends on the nature of the issue being addressed. In the case of reported problems with petrol quality, and the suggestions that these problems are attributable to petrol stretching, the priority has been to check out petrol stations about which a complaint was received. I am advised that the Revenue Commissioners are satisfied that this represents the best use of the investigative resources available to them in addressing this particular matter.

The Revenue Commissioners advise me that their activities to combat petrol and fuel fraud are based on risk evaluation and intelligence, and that fuel samples are taken mainly from where fuel is stored, at both wholesale and retail levels. The taking of samples from bulk fuel transportation vehicles is  carried out essentially as a backup to other compliance and enforcement activities.

As I indicated in my reply to the Deputy's Question No. 191 of 10 March 2015, all complaints received have been investigated and samples of petrol have been taken from the petrol stations concerned. Some 345 samples, from stations and other sources, have been referred to the State Laboratory.

The scientific analysis required is complex and time-consuming and the State Laboratory has conducted an extensive series of test and re-tests on the samples. Despite this, evidence of the presence of prohibited stretching agents has been found in only two samples, both from one location. The conclusive results received from those tests have resulted in the seizure of the product, and files are being prepared with a view to prosecution.

Following a series of further tests conducted by the State Laboratory, results were received which indicate the presence of traces of road diesel in several samples take from a variety of locations. This could indicate that petrol was contaminated with road diesel at some point in time. If the problems that came to light were caused by unintended contamination as a result of diesel being inadvertently mixed with petrol at some point along the supply chain, there would be no Revenue offence involved. However, the Revenue Commissioners are investigating vigorously the possibility of tax fraud being associated with the identified problems. In any instances where the analysis by the State Laboratory indicates the presence of illegal stretching agents in petrol, Revenue will take swift and robust action.

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