Oral Answers to Questions

Robert Halfon Excerpts

Wednesday 6th July 2011 Commons Chamber

[Mr Swire]

The right hon. Gentleman is right to raise the issue of corporation tax. There has been widespread consultation on the issue, and all the political parties in Northern Ireland support devolving the power to Northern Ireland. We believe that it will bring growth and jobs; equally, we believe that it is important to rebalance Northern Ireland’s economy, regardless of the situation that we inherited. Like me, the right hon. Gentleman represents an English constituency, and he will be aware that Northern Ireland receives about 25% more in spend per head of the population than England. It is therefore important that we rebalance Northern Ireland’s economy and allow it to grow.

[Robert Halfon (Harlow) (Con)]

3. What recent assessment he has made of the extent of petrol and diesel smuggling from the Republic of Ireland into Northern Ireland.

[The Minister of State, Northern Ireland Office (Mr Hugo Swire)]

Her Majesty’s Revenue and Customs leads the work to crack down on fuel smuggling and fraud, working closely with the Irish authorities. The Organised Crime Task Force, which is chaired by the Northern Ireland Justice Minister, estimated in its 2011 threat assessment that there is an annual tax loss of £200 million from fuel fraud and legitimate cross-border fuel shopping.

[Robert Halfon]

Estimates suggest that the Government actually lose between £280 million to £300 million a year to fuel smuggling and laundering in Northern Ireland. That pushes up fuel taxes for everyone, which is deeply unfair. Does my right hon. Friend agree that extending rural fuel pilots to the new economic zones would cut smuggling and save the taxpayer an absolute fortune?

[Mr Swire]

I agree that we need to save the taxpayer an absolute fortune, and I have had discussions about this issue with both the Northern Ireland Justice Minister and the Exchequer Secretary to the Treasury. I recently brought to the attention of the Exchequer Secretary and the Financial Secretary to the Treasury—who is here with us today—the comments of the hon. Member for North Antrim (Ian Paisley), who has some ideas about various companies that can help with the traceability of fuel. However, I would also point out to my hon. Friend that the “Cross-Border Organised Crime Assessment 2010” said:

“Changes in exchange and duty rates have made this…less profitable over the past few years than it would have been previously.”

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[Mr Speaker]

Order. The House will want to hear Mr Robert Halfon.

[Robert Halfon (Harlow) (Con)]

Q11. Thank you, Mr Speaker. Given that the Olympics and the diamond jubilee will take place next year, is the Prime Minister aware that immigration and special branch officers at Stansted airport are concerned that the common travel area channel in its current form allows illegal migrants, Islamists and terrorists into the country without their passports being checked? Will he take urgent steps to close that loophole immediately?

[The Prime Minister]

My hon. Friend makes an important point. Passport-free travel between the UK, the Crown dependencies and the Republic of Ireland has been in place for many years, and it offers real economic and social benefits. I accept that those routes can be open to abuse, and we are determined to resolve that. The UK Border Agency is working closely with Ireland and others to make sure that that happens, but we want to try to do so without disadvantaging people who have been able to take advantage of that common travel area up to now.