Maureen O'Sullivan (Dublin Central, Independent)
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316. To ask the Minister for Finance his plans to tackle black market smuggling here that a recent report stated cost the State €2.35 billion in 2015 in lost revenue; if his attention has been drawn to hardships faced in particular by small retailers; and if he will make a statement on the matter. [1755/17]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of a number of reports that have presented estimates of the losses to the economy and the Exchequer caused by smuggling and illicit trade. I would point out, however, that estimating the extent of any illicit activity and the losses to which it gives rise is inherently problematic and must, therefore, be approached with caution. Unless a clear and credible methodology is specified for particular estimates of illicit trade and the resulting losses, they must be viewed as speculative.

It is, nevertheless, accepted by all interested parties that smuggling, and shadow economy activities in general, pose a threat to legitimate and compliant businesses and to consumers, as well as depriving the Government of tax revenues. Tackling these illegal activities is, therefore, a key priority and Revenue has implemented wide-ranging programmes of action to combat them.

Revenue's actions against the illicit tobacco trade include a range of measures to identify and target those who are involved in the smuggling, supply or sale of illicit products, with a view to seizing those products and prosecuting the persons involved. This multifaceted strategy also includes ongoing analysis of the nature and extent of the problem, development and sharing of intelligence on a national, EU and international basis, use of analytics and deployment of detection technologies.

Revenue has also implemented a comprehensive strategy to tackle the illegal fuel trade, based on the introduction of strict new supply chain controls underpinned by rigorous enforcement action, as well as the very successful introduction, from April 2015, here and in the UK, of a new fiscal marker for marked fuels sourced in cooperation with the UK authorities.

In the case of alcohol, Revenue's action against illicit trade encompasses the full supply chain for alcohol products and includes measures to confront smuggling, the illicit production of alcohol and the supply or sale of illicit products.

Action taken by Revenue against smuggling is directed also at prevention of the importation of counterfeit goods and medicines and illegal drugs.

Revenue works closely with other agencies in the State, including An Garda Síochána, in acting against illegal activities related to smuggling and illicit trade. The relevant authorities in the State also work closely with their counterparts in Northern Ireland to target the organised crime groups that are responsible for a significant proportion of smuggling and other illegal activities. This work is being supported and facilitated by the Joint Agency Task Force, including Revenue, An Garda Síochána and their Northern Ireland counterparts, that was established in the framework of "A Fresh Start: the Stormont Agreement and Implementation Plan". Under the aegis of this Task Force, a very successful joint initiative between Revenue and HM Revenue and Customs, directed against suspicious movements of substitute fuel with potential for considerable excise and VAT fraud, won the "Outstanding Collaboration" category at the UK Government's Counter Fraud Awards in September 2016. From Revenue's perspective, this award recognises the excellent work and cooperation between Revenue and HM Revenue and Customs on investigations into the illegal movement of suspected substitute fuels.

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

I am assured by Revenue that combatting smuggling and illicit trade is and will continue to be, a core element of their work. For my part, I have taken action through the Finance Acts over recent years to ensure that Revenue has all the necessary powers to act against these forms of criminal activity and I am satisfied that, as a result, there is a robust legal framework in place that allows effective action to be taken against such crimes.