Brendan Smith (Cavan-Monaghan, Fianna Fail)
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85. To ask the Minister for Finance if additional measures will be introduced to deal with the problem of fuel smuggling and trading in illicit diesel products due to recent dumping of sludge south of the Border; and if he will make a statement on the matter. [25124/17]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of reports of a recent incident involving the illegal dumping of sludge close to the border with Northern Ireland and recognise the serious threat that fuel fraud poses to legitimate business, consumers and the Exchequer.  I am advised by Revenue that tackling fuel fraud has been one of their priorities over recent years.

While it is very disappointing that incidents such as this still occur, I am advised that the level of this illegal dumping is greatly reduced. I understand that a total of 40 illegal bulk containers of mineral oil waste were detected in County Louth to date in 2017, while 500 such containers were detected there in 2013.  This improvement reflects the success Revenue has in tackling this problem and the impact of legislative changes that I introduced over a number of Finance Acts to strengthen Revenue’s powers in tackling fraud in the fuel sector. The measures implemented by Revenue to tackle the problem included the introduction of stringent new supply chain controls and reporting requirements for fuel transactions to minimise the scope for fraud.  It also included a rigorous programme of enforcement action by Revenue. 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.

I understand that the industry view is that the measures implemented to date have been successful in significantly curtailing fuel fraud in Ireland.  This view is supported by a significant increase in tax revenues from road diesel over the past three years.  I am also advised that Revenue conducted a National Random Sampling Programme in January 2016, with a view to obtaining an updated picture of the extent of the fuel laundering problem. The programme involved selecting a random sample comprising nearly one in every ten of the 2,500 holders of Auto Fuel Trader Licences (any trader that produces, sells, deals in, or keeps for sale or delivery road diesel is legally obliged to hold such a licence). Road diesel samples were taken from all traders in the programme and tested for the presence of the new marker.  No evidence of the new fiscal marker was found in any of the samples tested. The random sampling programme was repeated in January 2017 and again, no evidence of the fiscal marker was found.  This provides very persuasive evidence that the strategy undertaken in recent years has been successful in addressing and significantly curtailing the laundering problem.

I am satisfied that Revenue's work against fuel fraud has achieved a considerable level of success, and I am assured that action in this area will continue to be a high priority.  In addition, I assure the Deputy that I will fully consider any further proposals for legislative change that may be brought forward by Revenue which would enhance its capacity to deal effectively with fraud and criminality in this area.