Brendan Smith (Cavan-Monaghan, Fianna Fail)
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78. To ask the Minister for Finance his plans to introduce new measures on a cross-Border basis to counteract illicit trade; if there are ongoing discussions with the authorities in Northern Ireland to address cross-Border smuggling; and if he will make a statement on the matter. [30915/18]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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106. To ask the Minister for Finance his plans to introduce additional measures to counteract smuggling and illicit trade in products such as fuel and tobacco; and if he will make a statement on the matter. [30914/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 78 and 106 together.

The threat that fuel fraud and the illicit tobacco trade pose to legitimate business, to consumers and the Exchequer is clear and I am advised by Revenue that taking action against this criminality continues to be a priority for them.

Steps taken by Revenue to combat the illegal fuel trade include the introduction of stringent new supply chain controls and reporting requirements together with a rigorous programme of enforcement action. In addition, Revenue and the UK Revenue and Customs undertook a joint initiative to introduce a new marker for use in marked fuels, which came into operation from April 2015.

The industry view is that the action taken has been successful in curtailing fuel fraud. I am advised also that Revenue conducted a random National Sampling Programmes in 2016 and 2017 to assess the extent of fuel laundering. The programmes each involved nearly one in ten of the some 2,500 holders of auto fuel trader licences, and tests of diesel samples taken from the randomly selected traders found no evidence of the new marker in any of them. The results of these sampling are a clear indication that Revenue’s actions have resulted in the near elimination of the selling of laundered products at retail level. A further sampling programme, in 2018, was expanded to include hauliers and other businesses in the transport sector and the data are currently under analysis.

Revenue acts against all aspects of the illegal tobacco trade, so that the illicit products involved can be seized and those responsible for smuggling or supplying them can be prosecuted. A combination of risk analysis, profiling and intelligence, and the risk-based screening of cargo, vehicles, baggage and postal packages is used to intercept illicit products. Action after importation includes checks at retail outlets, markets and private and commercial premises. This action has achieved considerable success, with the seizure in 2017 of 34 million cigarettes and 1,768 kilograms of tobacco. In March this year a joint operation with An Garda Síochána led to the closing down of a major illicit cigarette factory in Jenkinstown, County Louth. Over 20 million cigarettes and 70 tonnes of tobacco were seized at this facility, which could produce 250,000 illicit cigarettes an hour.

Revenue and An Garda Síochána work together on an ongoing basis in acting against fuel and tobacco crime, and both bodies cooperate closely with their counterparts in Northern Ireland, in the framework of the North-South Joint Agency Task Force. I am advised that this cooperation plays a key role in targeting the organised crime groups responsible for much of this criminality, who operate across jurisdictions.

I am satisfied that Revenue’s work against fuel fraud and the illicit tobacco trade has achieved a considerable level of success. Revenue is, however, conscious of the resourcefulness of those involved in these forms of criminal activity and is vigilant for, and ready to respond to, any new developments in these areas. For my part, I will consider any additional proposals for legislative change that may be brought forward by Revenue which could enhance its capacity to deal effectively with fraud and criminality in these areas.