3. Written evidence from the Freight
Transport Association
The main area of organised crime (directly or
indirectly) affecting the transport industry is that of fuel smuggling
and the illegal laundering of marked fuel.
It is estimated that over 95% of all diesel
road fuel used by NI registered commercial vehicles is not purchased
through the recognised supply outlets which attract the UK levels
of revenue duty.
Smuggled fuel (good quality) and laundered fuel
supplies are apparently readily available from a number of illegal
suppliers who make bulk deliveries direct into storage tanks in
the North. It is believed that considerable quantities are shipped
to Great Britain where there is a ready market.
Taken along with the legitimate purchasing of
fuel in the south of Ireland by transport companies and motorists
driving there, it is estimated the impact through annual loss
of revenue to the Exchequer is £350 million.
The additional impacts resulting from fuel purchases
in the south are lost revenue due to "general shopping"
across the border and the adverse impact to the environment (fuel
emissions) caused by additional unnecessary mileage incurred to
obtain the cheaper fuel. There is also additional damage caused
to our road network from this extra mileage.
The attraction of evading UK fuel duty levels
has been so high over the last number of years that legitimate
fuel oil suppliers in the North are not selling much diesel road
fuel.
The measures taken by Government to counter
this aspect of organised crime have been largely ineffective.
They claim to have applied increased levels of manpower but are
hampered by the length of time it takes to bring the culprits
to justice.
When cases are eventually heard, the courts
are apparently reluctant to proceed unless a criminal act can
be proved. The courts have apparently been known to reject cases,
telling HM Revenue & Customs to recover the unpaid duty which
means the guilty party being allowed to carry on business in order
to pay back the estimated amount of duty evasion.
The best method of stopping this type of organised
crime is to remove the opportunity through harmonisation of fuel
duty on the island of Ireland.
Tom Wilson
Manager FTA
1 December 2005
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