Cross-border Crime

Nigel Mills Excerpts

Wednesday 11th March 2015 Commons Chamber

[Dr McCrea]

Concern for the environment was also mentioned by a Minister of the Irish Republic recently. The House should be taking this matter very seriously, because damage is being done and we cannot turn a blind eye. The concern that many of us have is that the Government could do more. I cannot understand why those involved in this activity have not been brought before the courts. That is totally unacceptable. The last time anyone was brought before the courts was 2002, even though there are those who are known to have committed this crime.

[Nigel Mills (Amber Valley) (Con)]

Does the hon. Gentleman think the problem might be that HMRC has the lead duty to investigate fuel laundering? Perhaps, given that this involves serious organised crimes, the Police Service of Northern Ireland ought to have lead responsibility in Northern Ireland. Perhaps it would be more effective at bringing prosecutions.

[Dr McCrea]

I believe there are many agencies—when I am winding up I shall draw attention to this—that could work together to resolve this situation. I also accept what my right hon. Friend the Member for Lagan Valley (Mr Donaldson) said. We must turn our attention to the cross-border drugs and alcohol problem.

I turn now to another serious organised criminal cross-border activity: the counterfeiting of consumer goods. Although smokers have been warned of the serious health threats posed by illicit tobacco, the current price of duty-paid tobacco makes cheaper tobacco more readily available to the young and the vulnerable. For example, a notorious black market cigarette brand, Jin Ling, which is known to contain asbestos, was recently found on sale in Belfast. Smuggling black market cigarettes is extremely lucrative for organised gangs, which can make huge profits and which cost the UK £2 billion a year in lost taxes.

Last month, almost 1 tonne of raw leaf tobacco and 10,000 suspected illicit cigarettes were seized in raids by customs officers at a farm in south Armagh. HMRC said they were worth an estimated £236,000 in lost duty and taxes. In separate searches on the same day, 10,000 illegal cigarettes were recovered. A number of private and business addresses in County Down were inspected. A vehicle and the cigarettes were removed, worth an estimated £2,800 in lost duty and taxes. It is truly remarkable that no arrests have yet been made in relation to either operation. The question we have to ask is: why?

It is believed by many in the Province that the authorities are turning a blind eye, because this is a way to keep some paramilitary groupings sweet. Those groupings are able to fill the coffers of their organisations and even stand in elections against those who seek to do things in a legal and proper fashion. Although earlier this month five people from County Tyrone and County Down were arrested as part of an investigation into a suspected tobacco fraud worth £110 million, the situation highlights Northern Ireland as an attractive region for international crime gangs owing to the inertia in past months of parties failing to support the National Crime Agency in Northern Ireland. It is through these statistics that we are now clearly seeing the out-workings of not having the NCA in operation over the past year-and-a-half. It is no accident that these quantities of illegal substances are being smuggled across the border into Northern Ireland. These gangs know only too well that at present if the gang leaders are caught, some of their assets cannot be taken from them. For the past 18 months, we have been a soft touch for smugglers and criminal gangs. Although the NCA is now expected to be operational in Northern Ireland by May, it is largely a case of shutting the stable door after the horse has bolted.

Nothing surprises us about the intransigence of Sinn Fein and their hostility to the introduction of the NCA. They have a vested interest in seeking to hinder investigations into the skulduggery of their republican mates. However, others have dithered in their support for the NCA and have denied the Exchequer millions of pounds in lost revenue that could have ultimately benefited the people of Northern Ireland and the Northern Ireland Executive. The difficulties of policing the area along the border are well documented. As recently as last month, a south Armagh man was injured in an explosion while taking down a poster, put up by republican criminal gangs, which claimed that a second individual was a security forces informer or “tout”. However, while it is clear that there are tensions within republicanism, there remains a prevalence of fear in the community about co-operating with the police to bring those behind such threats and attacks to justice.

In conclusion, the motion calls on the Government to ensure greater co-operation between HMRC, the National Crime Agency and the PSNI in combining their investigative prowess to eradicate the scourge of criminal activity from our society.

--- Later in debate ---

[Dr Murrison]

Part of the difficulty, of course, has been that the PSNI has had to deal with a lot of these matters itself. The Chief Constable will say that he is well resourced, but he has been subject to considerable restraints, as have all police forces in the United Kingdom in recent years. That inevitably has an impact on what he can do. The fact that the NCA has not been able to operate at anything like its fullest extent in Northern Ireland has meant that there has been a deficit in policing in Northern Ireland. That is now, mercifully, being remedied so that the people of Northern Ireland can benefit from the full entirety of policing to which they are entitled. That will clearly have resource implications, which I hope will be beneficial, for the PSNI.

On the question of concerns about the lack of custodial sentences, after running a consultation in summer 2013 the Northern Ireland Department of Justice implemented legislative change in December of that year allowing the referral of unduly lenient excise fraud sentences to the Court of Appeal. The consultation and the resulting measure had the Government’s full support, of course. I can report to the House that in the period 2013-14 six individuals were prosecuted for fuel fraud in Northern Ireland. I accept that that is nothing like enough, given the extent of the problem, but it gives the lie to the suggestion that there have been no prosecutions as there clearly have. However, I would share the assertion made by the right hon. Member for Belfast North (Mr Dodds) that there need to be more. I hope that the introduction of the NCA will play a part in that.

On the specific issue of fuel laundering—

[Nigel Mills (Amber Valley) (Con)]

Will my hon. Friend give way?

[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).

[Nigel Mills]

While we are talking about the lack of prosecutions, the sentences that are given out are somewhat more lenient than we might hope for an offence of such seriousness. Does my hon. Friend agree that there is a problem in that a lot of people perceive fuel laundering and illegal sales of tobacco to be victimless crimes whereas—this is certainly the case in Northern Ireland—they are serious organised crime offences that fund other serious activity and should be treated with that seriousness by the public, by all the authorities and by those who give out the sentences when people are caught?

[Dr Murrison]

I agree it is not a victimless crime, as is clear from the figures I have trotted out—there is the cost to the Treasury alone. All of us who rely on the largesse of the public services we enjoy are victims of this crime, so I would certainly agree with my hon. Friend. On the leniency of sentences, I will be interested to see what the Court of Appeal decides.