Oral Answers to Questions
Debate between Andrew Murrison and Ian Paisley(9 years, 4 months ago)
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Dr Murrison
The hon. Gentleman will, I hope, have seen the Institute for Fiscal Studies incomes report published earlier this month. It marked a major milestone, for it is now clear that average incomes in Northern Ireland are back from the pit they were in prior to Labour’s deficit crisis. The IFS further forecasts that incomes will rise above inflation in the year ahead, and I hope the hon. Gentleman will welcome that.
Ian Paisley (North Antrim) (DUP)
Does the Minister recognise that the Democratic Unionist party’s long-term economic plan to see household taxes at their lowest and a freeze on the regional rate on household taxes for five years is working? However, this Government could have a direct impact by reducing energy costs for employers and consumers alike, and they should address that immediately.
Dr Murrison
The hon. Gentleman makes his points in his characteristically formidable fashion, and I am sure he will welcome the freeze on fuel duty, which will mean that by the end of this Parliament a tank of petrol will cost £10 less. He will also welcome inward investment to Northern Ireland, which I know he feels very strongly about given what has happened in his constituency, with, for example, Kainos, Randox, WhiteHat, Revel and PricewaterhouseCoopers. They will be creating 800 jobs in Northern Ireland—high-quality jobs—in the year ahead.
Cross-border Crime
Debate between Andrew Murrison and Ian Paisley(9 years, 4 months ago)
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The Parliamentary Under-Secretary of State for Northern Ireland (Dr Andrew Murrison)
I am very grateful for this timely debate. The motion, tabled in the name of the right hon. Member for Belfast North (Mr Dodds) and his DUP colleagues, is a good one and we support it. I am conscious that many in this House have given a great deal of attention over the years to the various issues under discussion. For example, I am happy to acknowledge the work of the Northern Ireland Affairs Committee in its 2012 report on fuel laundering and smuggling. I also pay tribute to the work of the British-Irish Parliamentary Assembly, whose committee report, “Cross-border Police Cooperation and Illicit Trade”, which was published last month, the Government are studying closely. I also congratulate the hon. Member for South Antrim (Dr McCrea) on presenting his remarks in typically robust fashion. I will try to address the points he has raised as far as I can.
The motion lists a schedule of serious criminal activity, but before I address each of them in turn I want to put on the record the fact that crime rates overall in Northern Ireland are low and that Northern Ireland is a safe place to be. I say that because it is important to pay tribute to the various agencies that operate in Northern Ireland for the work they do in ensuring that safety, and to give a message to those who are looking at Northern Ireland as a good place to invest and a good place to be. Many of us grew up in the 1970s and ’80s and, although we did not live in Northern Ireland, every night we saw images on our television screens that portrayed a very different Northern Ireland. That is, mercifully, a thing of the past and, in order to foster the economic security that goes hand in hand with security, we need to give the right message to those who may be seeking to invest in Northern Ireland. I know that the hon. Gentleman feels as strongly as I do about that.
The DUP is right, however, to bring the issues under discussion to the attention of the House. Northern Ireland has particular issues regarding criminality. It is a very particular place and the challenges are peculiar to Northern Ireland, and we cannot ignore them. We owe it to people in Northern Ireland to address them to the best of our ability.
The hon. Gentleman effectively described the situation of fuel laundering, which is a clear and present danger that is particular to Northern Ireland, given that it has the United Kingdom’s only land border. Fuel laundering and fuel smuggling come at a great cost to the Exchequer, honest businesses and the environment. The hon. Gentleman also touched on the possible cost to security. The Government take the problem of oils fraud and crime very seriously indeed. The hon. Gentleman should be assured of that and I hope to be able to give him some examples of the efforts we have made to drive it down. Moreover, with the assistance of the agency to which he referred, I hope we will have further successes in the months and years ahead.
Fuel duty plays an important role in a range of Government objectives—social, environmental and fiscal. Fuel duty is also the fifth largest revenue stream for the Government at around £27 billion a year. Clearly, we cannot ignore it. The rates of fuel duty for all of the UK are set by the Chancellor, taking a wide range of factors into consideration. To support motorists and businesses, the Government cut fuel duty in March 2011 and have cancelled all subsequent planned increases until the end of the Parliament, a point I touched on during Northern Ireland questions earlier today.
The Government have a comprehensive strategy in place to tackle fuel fraud and crime. The oils anti-fraud strategy was originally launched in 2002, as the hon. Gentleman has said, and has driven down the estimated illicit market considerably in both Great Britain and Northern Ireland. Indeed, the latest tax gap figures published by HMRC indicate that the estimated illicit market share for diesel for Northern Ireland has fallen from 26% to 13%. By any measure, that is quite an achievement. The strategy was aimed at making it much harder for fraudsters to obtain rebated fuels, and to track and analyse the supplies of them, including a requirement for all dealers to register and submit returns. The registered dealers in controlled oil scheme has been a key weapon in our fight back against fuel fraud.
In Northern Ireland, the Government have close and productive co-operation with the Northern Ireland Executive and with the authorities in the Republic. Co-operation and intelligence sharing through the Organised Crime Task Force and the cross-border fuel fraud enforcement group has been invaluable in applying multi-agency pressure to tackle oils fraud, including fuel smuggling and laundering.
Ian Paisley (North Antrim) (DUP)
On combating fuel fraud, will the Minister confirm that the new fuel marker that is about to be introduced in Northern Ireland has no roadside test capability whatsoever and that, therefore, the Government are about to put in a marker that cannot be tested on our roadsides?
Dr Murrison
The road marker has been a long time in the making. It has been trialled both in the UK and in the Republic and both countries are happy with it. I am assured that it will be robust and that it is extremely difficult to remove.
Ian Paisley
I will have an argument with the Minister about its capability in a moment, but I am asking a specific question about roadside testing. We cannot combat crime if we are not able to stop someone who has the fuel and test it at the roadside. One of the requirements of the IMS test was to have roadside capability, so will the Minister confirm that the Dow marker has no roadside capability?
Dr Murrison
What I can confirm is that the marker is capable of being discovered; otherwise, frankly, there would be no point in having it, would there? What would be the point of going to the expense of putting in a marker if it was not possible for criminal justice agencies to determine whether the material was illicit or not? [Interruption.] Perhaps I will be able to come back to the hon. Gentleman’s remarks later, but if I cannot deal with them satisfactorily perhaps the Under-Secretary of State for the Home Department, my hon. Friend the Member for Staffordshire Moorlands (Karen Bradley), who will be in the hot seat shortly, will be able to shed some further light to his satisfaction.
In the financial year 2013-2014 alone, HMRC dismantled 38 laundering plants, closed 79 huckster sites and seized more than 500,000 litres of illicit fuel in Northern Ireland. I accept that the hon. Member for South Antrim is frustrated by the failure to eradicate this particular form of criminality, but that is quite an achievement and it represents considerable downward pressure on organised crime in Northern Ireland. Although we are all impatient for more, we sometimes have to celebrate successes as well as take note of failures.
Dr Murrison
I will in a minute.
Hon. Members might be aware that the UK has worked closely with Ireland to identify a new fuel marker. It will come in in May and represents a significant improvement on the current fuel marker. It gives much more protection against fraud.
Dr Murrison
I think that we have exhausted this particular point, and I did say that I would come back to the hon. Gentleman. However, I said that I would give way to my hon. Friend the Member for Amber Valley (Nigel Mills).
Ian Paisley (North Antrim) (DUP)
At the outset, I congratulate my hon. Friend the Member for South Antrim (Dr McCrea) on securing this very important debate and on introducing it in such a powerful way. I thank all Members from across the House who have spoken, but I pay particular tribute to the hon. Member for Birmingham, Erdington (Jack Dromey), the Labour Front-Bench Spokesman. He has put on the record some incredibly startling facts that require answers.
Last week, Alan Bennett, the famed playwright, when interviewed on “World at One”, was asked to outline for us the most important achievement of this nation. After pondering on whether it should be the National Trust or our physical heritage, he said very clearly that it was English hypocrisy.
I am sick, sore and tired. We have heard a unified voice from this side of the House, whether nationalist or Unionist. We are sick, sore and tired of the hypocrisy that is fed to us by the shovel-load: that we are somehow thick Paddies who have no idea of what is going on in our country when it comes to crime, and that if we dare to expose anything about it, we are told, “Hush, hush, you’ll tip the criminals off.” Anyone would think we were a bunch of suckers when it comes to dealing with crime, but we have lived among these criminals for decades. We see how they work. We see the evil they bring upon our society. We want it dealt with and we want it dealt with now. We are saying that with a unified voice on this side of the House, across all parties. We are no longer prepared to be fed, quite frankly, the bull that we are being fed: that this matter is being dealt with by officialdom.
Alan Bennett was right when he pointed to hypocrisy. I see it in the officials that I meet and have met daily since 2009 and since entering this House. We have tried to deal quietly and discreetly with the issue of how we can tackle serious and organised crime in our society. All we get, frankly, is this hypocrisy: it will be dealt with, it will be dealt with. Well, five-and-a-half years later it has not been dealt with. Since 2009, when I came off the Organised Crime Task Force board, I have not seen one single inch of progress. I have heard a lot of platitudes. We on this side of the House are sick, sore and tired. We want something done. We want something done urgently. We want something done that is effective and actually makes a difference. I believe we are all on the same side and want to see the criminals beaten, but officials are dragging their feet when it comes to sorting out this problem. I hope they can get to grips with it.
Last week, a national newspaper report by Brian Flynn dealt with a number of crime issues and I want to address those listed in the motion. The first is the smuggling of tobacco products and the impact it has on our economy. Every crate of smuggled tobacco products puts £1 million into the coffers of the criminals, and 40% of all cigarettes smoked across the United Kingdom are either counterfeit or smuggled. The vast majority of that money goes into the coffers of the IRA. In fact, last year it was estimated that it achieved about £22 million from that enterprise.
Some of us take a different view of plain packaging, but under new regulations it is estimated that the profit margin will increase to €120 million, which is £87 million. That is enough money, as we would say locally, to choke a donkey. The people engaged in this serious organised crime are rubbing their hands in glee at the prospect of plain packaging after today’s vote because, whether we are for or against plain packaging—I respect the views of those who support it for health reasons—the legislation is defective on the issue of tracking and tracing.
At present, the manufacturing of cigarette boxes involves placing an electronic track-and-trace system in each box. The legitimate manufacturer of the cigarette packet gives those track-and-trace numbers to the police and customs, and the police can at any time place the packet on a hand-held machine in order to see the date and location of manufacture. Under the defective delegated legislation that went through the House today, that has been removed and packs cannot have track-and-trace. The Government have told me privately, “We’ll introduce it later on,” but apparently the earliest it can be introduced under the delegated legislation is in about three years. There is a bonanza coming for the next three years, because cigarette packets will have no track-and-trace capability. Criminals out there are rubbing their hands in glee because an effective security measure has now been removed from cigarette packets. The hypocrisy stinks to heaven.
The second issue that has taken up a lot of time in this debate is that of fuel laundering and fuel fraud, and it is a most serious crime. The hon. Member for Birmingham, Erdington asked some very serious questions. Indeed, he and my hon. Friend the Member for Upper Bann (David Simpson) asked 13 specific questions that have not yet been answered, and this House is entitled to answers.
Why would the Government continue in January 2015 to designate in legislation the Dow fuel marker when they knew a year ago that it was not fit for purpose, being completely launderable using basic science? The Hydrocarbon Oil (Marking and Designated Markers) (Amendment) Regulations 2015 will come into force on 1 April and they indicate the precise ingredients of the Dow marker. Under law, believe it or not, we have to tell the world what makes up the Dow marker. That is how pathetic the hypocrisy of our country is: we have to tell the criminals that publicly. The Minister said tonight that the Labour Front-Bench spokesman, the hon. Member for Birmingham, Erdington, should not have read out a letter as it could have tipped certain people off, yet we publish in black and white the exact ingredients that go into the Dow marker. The statutory instrument is well timed, because it comes into effect on 1 April, April fools’ day. What fools we are for just going along with that and accepting the regulations, which publish what will be in the fuel and tip off scientists, legitimate and otherwise, about what is in the recipe for the Dow marker and what they therefore need to do to remove it.
If the marker was effective, that would not matter, because we would have those people and could prevent them from doing that. However, it is not effective and the Government knew that it was not effective a year ago. The Opposition spokesman put on the record the letter from 9 July 2014 from the then Treasury Minister, the right hon. Member for Loughborough (Nicky Morgan), to the Chairman of the Northern Ireland Affairs Committee, the hon. Member for Tewkesbury (Mr Robertson), telling him that the information about the theoretical weaknesses in the fuel could alert fraudsters. The idea was that he should just hush it up and not tell anyone and the Government would keep working on it. The Government then went on to say that there was insufficient evidence to show that the process of distilling the fuel was
“a viable option commercially on a large scale for effective laundering of rebated fuels, although HMRC are continuing to investigate these claims.”
I will come to the question of whether that can be done effectively and economically, but let me turn first to the question of hushing things up. Members of the Northern Ireland Affairs Committee were prepared to sit for some time and give the Government the opportunity to change things and to make a move. We waited from last July and promises were made through August, September and October. Bigger promises were made in December and, at the turn of the year, we were told that things would be changed. They have not been changed and the April fools’ day legislation will be put in place without a single jot or tittle removed from it. The legislation, which will be pushed through, will push through a defective marker that the criminals will welcome and that they know they can remove.
How do I know that it can be removed? Today, we have placed in the Library a report that was confidential until yesterday, written by four academics, one from Queen’s university. The report, entitled “Distillation of fuel markers”, makes a number of startling claims, which I want to put on the record. In its opening section, it states:
“Distillation is a very simple and highly cost-effective way of removing a marker and has a key advantage over many of the methods cited above in that there is no laundering residue for the criminal to dispose of.”
My hon. Friend the Member for East Antrim (Sammy Wilson) can rest tonight in the knowledge that in future when criminals distil fuel and remove markers from it there will no longer be terrible sludge and waste pumped into our rivers. This marker is so simply removed that it can be distilled off the top of fuel without creating any terrible after-pollution. The simplicity of the distillation process is incredibly beneficial to the criminals.
The report goes on to state:
“Given the simplicity of distillation it is apparent that an authority would be foolhardy to employ a marker whose boiling point fell just in or entirely outside the boiling range of the fuel to be protected.”
That is exactly what Dow has done. It has created a marker that is effective until just below boiling point, so people can boil the marker away without causing any harm and it vanishes up into the heavens. It is the devil’s share. He gets his share and the criminals get theirs. That is what is happening as a result of the new fuel marker.
The report stated that the academics took a British piece of scientific equipment, a marker that was found worthy of being put into British fuel, and tested it against the Dow marker. It stated this, after testing both markers:
“These results clearly indicate that the Dow marker can effectively be removed by simple distillation and successfully separated from the diesel distillate.”
In other words, the fuel can be separated completely from the marker and sold as unabated fuel that is no longer marked.
Dr Murrison
The hon. Gentleman is making a speech in his usual robust fashion, but it is important to put on the record the difference between a laboratory analysis and scaling up to field operations. I think he needs to reflect that in his contribution.
Ian Paisley
I am delighted by that, because I am going to reflect that point now and I thank the Minister for encouraging me to do so. The then Treasury Minister said that there was insufficient evidence that the process was a viable commercial option, which I think is the point the Minister has just made: “Yes, you can do this in a lab, but could you really do it in the field?” Well, the report that is now in the Library goes into this, under a section entitled, “Economics of distillation”:
“The capital cost of a distillation plant suitable for laundering out a marker from fuel is low. Cost for off the shelf plant can be as little as…£12k”.
For an initial outlay of £12,000 for a small plant, the criminals could make about £16,000 per day, after they have laundered the product, or 5.8 million quid a year—that is pretty economical in my books; that is pretty cost-effective. I will come to the in-field testing in a minute, so I hope the Minister will brace himself, because it gets even better.
The report goes on:
“Even taking into account the worst case scenario presented above, a 160kW distillation laundering plant would generate huge profits with a payback in just under a fortnight. If this process was refined with heat regeneration and vacuum distillation, it would be quite feasible to double the capacity of this system. A small 1MW industrial unit could operate 6 of these 160kW systems, generating clear profit of approximately £92,000 per day and a payback period of less than 2 weeks. Such a 960kW laundering facility would be capable of generating an annual profit of approximately £33.5 million.”
This is a feasible, cheap alternative for gangsters and criminals. This report, which is in the Library of the House, is by a credible group of scientists and, critically, presented in such a way that if it is wrong, the Dow Chemical Company could sue the pants of these people. But it won’t go near it—it won’t even address the points made.
I understand that in-field testing was carried out on four occasions. The one at Bellingham, which my hon. Friend the Member for Upper Bann (David Simpson) mentioned, was not a small test; it was a test of 30,000 litres of fuel distilled successfully—it was just distilled off. Another test was carried out in Northern Ireland, and another test of a similarly large quantity, carried out by a scientist, Professor J. J. Leahy, in the Republic of Ireland, also proved that this material could be distilled off. Queen’s university also carried out a test, but sadly, after it reported privately to officials last year, the official response to the professor at Queen’s university was this: “You’d better tell us where that illegal plant you’ve just set up is, because we want to put it out of business.” I can take a joke, but I do not think that was a joke—it is almost like they were telling him for daring to undermine what officials were doing. It is hypocrisy.
Oral Answers to Questions
Debate between Andrew Murrison and Ian Paisley(9 years, 7 months ago)
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Dr Murrison
I certainly agree with my right hon. Friend that transparency of funding of political parties is essential. Indeed, I see on the Sinn Fein website that it is the stated intention of that party itself. Although the material published on the Electoral Commission’s website in relation to Sinn Fein’s accounts is basic, I hope that the new legislation—in which my right hon. Friend was very much involved—will give us greater clarity, although it is important that donor identity is preserved.
Ian Paisley (North Antrim) (DUP)
We had the scandal of the on-the-runs, we had the scandal that for 10 years people associated with one political party were involved in fuel smuggling to raise money, and we have the ongoing scandal of elected Members not taking their seats but receiving money from the House. When will the Government address that?
Dr Murrison
People considering how to cast their votes should pay particular attention to the work that their elected representatives do here. That increasingly appears to be the case and, given the current circumstances, I would have thought that it applied to Sinn Fein more than any.