Written answers

Thursday, 16 July 2015

Department of Finance

Petrol Stretching

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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211. To ask the Minister for Finance further to Parliamentary Question No. 6 of 1 April 2015, the progress to date on the issue of petrol stretching and contamination; and if he will make a statement on the matter. [30264/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that they fully recognise the serious threats that fuel fraud poses to legitimate businesses, motorists and to Exchequer returns. They continue to undertake on an ongoing basis the implementation of a wide-ranging programme of measures to tackle all forms of illegal fraud.  This programme of compliance and enforcement activities are designed to ensure adherence to the legal requirements governing the supply and sale of fuels and to allow action to be taken against fraud. Some of the main elements of the programme include the carrying out of control and compliance inspections at critical points of the fuel supply chain, and the targeting, in co-operation with other enforcement authorities, of the organised crime groups that are responsible for a large proportion of fraudulent activity.

The Finance (No. 2) Act 2013 provides that a supplier who is reckless in supplying fuel for a use connected with excise fraud will be liable for duty at the standard rate of tax, and represents a significant disincentive to such activity. In the Finance Act 2014, I introduced measures to further strengthen Revenue's ability to refuse or revoke a mineral oil trader's licence where the trader does not comply with excise law, does not maintain adequate stock management systems and records, or provides false or misleading information.  

With regard to the complaints received from mid 2014 relating to the quality of petrol and the suggestion that they resulted from contamination I again reiterate that every filling station about which a complaint was made has been visited by Revenue officers and petrol samples taken have been sent to the State Laboratory for scientific analysis. 360 samples were submitted but, despite this extensive programme, 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 led to the seizure of the product. A case is currently before the Courts in relation to one of these detections and a file is being prepared with a view to prosecution in the case of the 2nd detection. 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 is satisfied that this represents the best use of the investigative resources available to them in addressing this particular matter. I have been advised by the Revenue that the number of complaints received by them have decreased significantly from a peak of 104 in the months September to November 2014 to 13 in the first quarter of 2015. However despite this welcome trend I am assured that combatting such illegal activity will continue to be a key priority for them.

I am satisfied that the Revenue will continue to fulfil their responsibilities by undertaking a wide-ranging and effective programme of action to tackle all forms of fuel fraud.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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212. To ask the Minister for Finance the total number of complaints of petrol stretching and contamination received in the past 12 months by the Revenue Commissioners; and if he will make a statement on the matter. [30273/15]

Photo of Michael NoonanMichael 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 recognise the serious threats that this criminal activity poses to legitimate businesses, motorists and Exchequer revenues. Action against it is, therefore, a priority for them, and they undertake, on an ongoing basis, an extensive programme of compliance and enforcement activities that are designed to ensure adherence to the legal requirements governing the supply and sale of fuels and to allow action to be taken against fraud.

Revenue has, since last summer, 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 has received a total of 142 complaints for the period from July 2014 to 30.04.2015, the majority of which originated in Revenue's Border Midland West Region.  The numbers received in each month since July 2014 are set out in the following table.

Month:  July 14Aug 14 Sept 14Oct 14Nov 14Dec 14Jan 15Feb 15 March 15April 15
Total:112283442116341

Unfortunately figures for May and June 2015 are not currently available but Revenue  will revert to the Deputy when same are collated. 

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

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