Northern Ireland: Illegal Petrol and Diesel

Lord Mawhinney Excerpts

Tuesday 15th July 2014 Lords Chamber

Asked by

[Lord Mawhinney]

To ask Her Majesty’s Government what is their estimate of the total loss to HM Treasury caused by the production and smuggling of illegal petrol and diesel in Northern Ireland.

[Lord Newby (LD)]

My Lords, the latest tax gap figures published by Her Majesty’s Revenue and Customs estimate the market share for illicit diesel in Northern Ireland at 12% to 13%, or around £80 million, in 2011-12. Petrol fraud was estimated as negligible.

[Lord Mawhinney (Con)]

I thank my noble friend for that reply. Given the illegal production and smuggling of fuel in Northern Ireland for decades, given the fact that today a quarter of all fuel sold in Northern Ireland is illegal, and bearing in mind the loss to the Treasury which my noble friend just mentioned and the fact that there has not been a single conviction, is he surprised to learn that many people in Northern Ireland believe that that set of circumstances points to the fact that a deal may have been done with the smugglers, akin to that for the on-the-runs, suggesting that if they stick to smuggling no other action will be taken against them? Can my noble friend assure us that no such deal has been conducted in writing, in words, or by a nudge or wink by this Government?

[Lord Newby]

My Lords, I can absolutely do that. First, perhaps I may correct the noble Lord. A quarter of all diesel consumption is not illegal; 12% to 13% is illegal; the balance is made up of diesel that is bought in the Republic and brought across. I also assure the House that it is not true that there have been no convictions in this area. There were nine convictions last year, nine convictions the previous year and four convictions the year before. It is true that, unlike in the rest of the UK—or, rather, in England and Wales—there have not been custodial sentences in Northern Ireland, but legislative change last December was undertaken specifically to deal with that problem.