Written answers

Tuesday, 30 May 2017

Photo of John CurranJohn Curran (Dublin Mid West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

152. To ask the Minister for Finance the revenue raised in 2016 and to date in 2017 through increased enforcement and sanction of fuel laundering further to the commitment on page 34 in the programme for Government; and if he will make a statement on the matter. [25782/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The serious threat that fuel fraud poses to legitimate business, to consumers and the Exchequer is recognised and I am advised by Revenue that tackling this criminal activity has been one of their priorities over recent years.

Revenue’s comprehensive strategy for combatting the illegal fuel trade has 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, underpinned by legislative changes that I have introduced over a number of Finance Acts to strengthen Revenue’s powers for dealing with this kind of fraud. 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 work closely with their counterparts in Northern Ireland, through cross-border enforcement structures, to tackle the organised crime groups that are responsible for a large proportion of this criminal activity. Revenue also works in close cooperation 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.

Between 2013 and 2016, the quantity of auto diesel released for consumption increased by 24 per cent, but the quantity of marked gas oil fell by 5 per cent. In the first four months of 2017, auto diesel released for consumption showed a rise of 2.2 per cent, while marked gas oil was lower by 5.2 per cent. While there is a range of considerations influencing the levels of demand for these fuels, Revenue advises me that the combination of rigorous supply chain controls and enforcement action on their part has diminished the availability of marked gas oil for laundering. This is borne out by the fact that the oil laundry uncovered in December 2016, in County Monaghan, was the first detected since 2014.

Revenue has undertaken research to assess the impact of the strategy to combat the illegal fuel trade. Revenue published an analysis (available at ) in January 2015 of oil market trends and, on the basis of a comparison of extrapolated pre-2013 trends with actual results for 2013 and 2014, estimated that the strategy pursued in recent years may have saved the Exchequer between €150m to €200m in 2014.  Updated analysis published by Revenue (available at)  in April 2017 shows that the impact of Revenue’s compliance initiatives may be contributing to a further uplift in receipts from diesel of up to €35m per annum (based on 2016 levels of trade).

I understand that the industry view is that the measures implemented to date have been successful in significantly curtailing fuel fraud in Ireland. I am advised that Revenue conducted a national random sampling programme in January 2016, to obtain an updated picture on the extent of the fuel laundering problem. The programme involved a random sample involving nearly one in ten of the 2,500 holders of auto fuel trader licences. Road diesel samples were taken from all of the traders in the programme and tested for the presence of the new marker. No evidence of the new marker was found in any of the fuel samples tested. The random sampling programme was repeated in 2017 and, again, no evidence of the marker was found. The results of the sampling programmes are available at . This represents further persuasive evidence that the strategy pursued in recent years has been successful in addressing and curtailing significantly the fuel fraud problem.

I am satisfied that Revenue’s work against fuel fraud has achieved a considerable degree of success, and am assured that action in this area will continue to be a high priority for them. In addition, I can assure the Deputy that full consideration will be given to any further proposals for legislative change that may be put forward by Revenue which would enhance their capacity to deal effectivity with fuel fraud and criminality.

Comments

No comments

Log in or join to post a public comment.