Brendan Smith (Cavan-Monaghan, Fianna Fail)
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56. To ask the Minister for Finance his plans to implement additional measures to deal with the smuggling of diesel and tobacco products and other illicit trade; and if he will make a statement on the matter. [16395/17]

Michael Noonan (Limerick City, Fine Gael)
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Criminal activity of the kind referred to by the Deputy poses a serious threat to legitimate businesses, consumers and the Exchequer.  I am assured by Revenue that action against smuggling and other illicit trade of excisable products is, and will continue to be, a priority and that strategies to monitor and tackle existing and emerging areas of concern are embedded in Revenue's business programmes.  Revenue's work in this area is supported by robust legislative measures many of which I brought forward in Finance Acts over the last number of years.

With regard to tackling the illegal fuel trade, the primary threat in recent years came from fuel laundering and I am sure the Deputy will agree that Revenue has been very successful in tackling the problem. The measures taken in this regard included a significant legislative programme that I implemented over a number of Finance Acts, as well as implementing a new fuel marker, to strengthen the regulatory framework for the distribution of fuel in Ireland. Changes in the licensing system and mandatory supply chain reporting by all traders involved in the sale and distribution of fuel have minimised the scope for fraud in the sector. 

With regard to tobacco products, Ireland, like all countries with high tobacco taxes, is an attractive target for smuggling. The potential loss of revenue as a consequence of smuggling is very serious and as such tackling the issue is a key priority for Revenue.  Robust and targeted legislative action has been taken over recent years to strengthen Revenue's powers, including enhanced Revenue powers of search and inspection. The Government will continue to ensure that all legislative action necessary to combat illicit tobacco trade will be taken.

On the alcohol side, duties provide a financial incentive for alcohol fraud, but there is little evidence of large scale illegal activity at present. Illicit trade in alcohol can occur through the illegal diversion of untaxed alcohol onto the market and also through the illegal production of counterfeit alcohol and Revenue is very alert to these risks.  Revenue's action is based on intelligence on criminal activity, risk based examination of commercial traffic and of stock in retail premises.

I am satisfied that Revenue's strategies have been very successful, and I am assured that action in these areas will continue to be a high priority.