Fuel Laundering

Jim Shannon Excerpts

Tuesday 22nd May 2018 Commons Chamber

[Ian Paisley]

I thank my hon. Friend for that intervention. The Government’s very conservative estimate of what this crime amounts to is largely down to the lack of resources being directed at tackling it, as measured by the small amount of arrests and convictions, and to the fact that the current Government strategy of markers has failed because the markers do not work as well as the Government pretend. As it is Northern Ireland’s problem, it is often regarded as a problem that is out of sight and out of mind. However, the facts available to me indicate that it is fast becoming a UK mainland problem.

[Jim Shannon (Strangford) (DUP)]

Does my hon. Friend agree that a zero-tolerance approach must be taken to fuel laundering, not simply because of the cost to the Exchequer of some £100 million per annum in Northern Ireland, but because those carrying out these crimes are very often inextricably linked with paramilitarism? We must cut off the money-making arm of paramilitary groups throughout Northern Ireland. Do away with the money and we stop the paramilitary groups being active.

[Ian Paisley]

I thank my hon. Friend for that intervention. We hear much debate about Brexit and the hard border, and how it must be frictionless and customs must be harmonised. Every gangster who is engaged in this operation in Northern Ireland and this level of crime, many of whom are senior Sinn Féin supporters and other senior paramilitaries, believes in a hard border on this one, because they love the fact that there is a customs differential and they want to ensure their ability to transfer vast amounts of laundered fuel in a frictionless manner.

Let us examine the scale of the crime. In March, Baroness Neville-Rolfe stated in an answer to questions in the other place that the estimated level of illicit fuel sales amounts to “£50 million” in lost revenue for the last year for which figures were available. I believe that is a glossed over view and that, even though it is a staggering amount, it conceals a far greater level of fraud. However, if that was the height of it, that is half a billion in resources lost to the Government over the term of a normal Parliament. The most recent official report of the Organised Crime Task Force—I must declare an interest, as I served as a member of it before I joined this House—details that the tax gap between Government known legitimate sales of oils and fuels, and illicit fuel trading is about £100 million, as my hon. Friend the Member for Strangford (Jim Shannon) identified. That has reduced from about £160 million nine years ago, but it is still a staggering amount.