Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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214. To ask the Minister for Finance the number of oil laundering plants which have been uncovered in the past five years, in tabular form; the location these plants were uncovered; the estimated potential loss to the Exchequer; the size of these operations; the number of arrests which have been made following these discoveries; the stage theses cases are at; the ongoing steps by the Revenue Commissioners to monitor these illegal operations, particularly in the border region of counties Cavan and Monaghan; and if he will make a statement on the matter. [41098/16]

Martin Kenny (Sligo-Leitrim, Sinn Fein)
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221. To ask the Minister for Finance the amount of excise foregone to the Exchequer from the illegal use of green diesel here in each of the years 2011 to 2015; and if he will make a statement on the matter. [41021/16]

Joan Burton (Dublin West, Labour)
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304. To ask the Minister for Finance his plans to increase enforcement and sanctions for fuel laundering, in view of the programme for Government commitment and the estimates in the British Irish Parliamentary Assembly report on cross-Border crime of the loss to the Exchequer by fuel fraud to be in the range of €140 to €260 million per year; if he has met his Northern Irish counterpart on this issue; and if he will make a statement on the matter. [1679/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 214, 221 and 304 together.

I am advised by the Revenue Commissioners that the number of oil laundries detected and closed down in the period from 2012 to 2016 was 23.  Operations varied in size from basic to sophisticated.  Details of those detections, arrests and the stage these cases are at are set out in the table below.

I am advised also that it is inherently difficult to estimate with confidence the extent of any illegal activity and that it is not possible, therefore, to put a figure on the cost to the Exchequer of fuel laundering. Nevertheless, the serious threat that criminal activity of this kind poses to legitimate and compliant businesses, consumers and the Exchequer is recognised, and action against it has accordingly been a priority for Revenue over recent years.

Revenue has implemented a comprehensive strategy to tackle the illegal fuel trade, including the introduction of stringent new supply chain controls underpinning a rigorous programme of enforcement action and supported by a range of new legislative measures that I brought forward in Finance Acts. In addition, Revenue and HM Revenue and Customs in the United Kingdom undertook a joint initiative to find a new fiscal marker for use in marked fuels, which was introduced in Ireland and the United Kingdom from the beginning of April 2015.

Revenue works closely with An Garda Síochána in acting against fuel fraud, and the relevant authorities in the State also work closely with their counterparts in Northern Ireland, through cross-border enforcement groups, to target the organised crime groups that are responsible for a large proportion of this criminal activity.

This work is being supported and facilitated by the setting up earlier this year, in the framework of "A Fresh Start: the Stormont Agreement and Implementation Plan", of a Joint Agency Task Force, which includes Revenue as well as An Garda Síochána and their Northern Ireland counterparts. Under the aegis of this Task Force, a very successful joint initiative between Revenue and HMRC, directed against suspicious movements of substitute fuel with potential for considerable excise and VAT fraud, won the "Outstanding Collaboration" category at the UK Government Counter Fraud Awards in September 2016. This award, from Revenue's perspective, recognises the excellent work and collaboration between Revenue and Her Majesty's Revenue and Customs on investigations into the illegal movement of suspected substitute fuels.

Revenue also works in close cooperation also with the relevant authorities in other jurisdictions, the European Anti-Fraud Office and other international bodies and agencies in the ongoing programmes of action at international level to combat the illicit fuel trade.

I understand that the industry view is that the measures implemented to date have been successful in curtailing fuel laundering in Ireland.  This view is supported by a significant increase in tax revenues from road diesel over the past three years.  An analysis of long term consumption trends for road diesel and marked diesel in Ireland undertaken by Revenue and published on their website at also points to a significant change in the pattern of consumption following implementation of the measures referred to above. 

The Deputies may also be interested to note that in an intelligence-led operation in December 2016, Revenue enforcement officers supported by the Garda Regional Support Unit, seized two oil tankers, 20,000 litres of laundered mineral oil, 140 bags of bleaching earth, ancillary equipment associated with oil laundering and cash, bank drafts and cheques in excess of €60,000 in the Castleblayney area. This is the first oil laundry detected in this jurisdiction since 2014.

The penalties for offences relating to fuel fraud are laid down in section 119 of the Finance Act 200 and section 102 of the Finance Act 1999. On conviction following summary prosecution under these provisions, a court may impose a fine of €5,000, or a term of imprisonment not exceeding 12 months, or both. Where a person is convicted for an indictable offence, the court may impose a term of imprisonment not exceeding 5 years, or a fine not exceeding €126,970, or both. In addition, for an indictable offence under section 119 of the Finance Act 2001, if the value of the fuel concerned in the fraud exceeds €250,000, including duty and taxes, the court may impose a penalty of three times the value of the fuel, or a term of imprisonment not exceeding 5 years, or both. The current levels of fines were introduced by the Finance Act 2010 and represented significant increases over the previous amounts: for example, the fine on conviction for an indictable offence was increased from €12,695 to an amount not exceeding €126,970.

The Courts decide on the amount of the fine to be imposed in any particular case and, in practice, do not apply fines up to the existing limits. There are no proposals at present to increase the level of fines available to the courts. However, the position is kept under review taking account, among other considerations, of the practical experience of the fines imposed under the current provisions.

I am satisfied that Revenue's work against fuel laundering has achieved a considerable level of success, and I am assured that action against fuel fraud will continue to be a high priority.