Question to the Northern Ireland Office:

To ask the Secretary of State for Northern Ireland, what discussions she has had with HM Treasury about the effect on tax revenues in Northern Ireland resulting from cross-border smuggling.

I have regular discussions with Treasury ministers on these and other matters.

The failure to pay hydrocarbons oil duty in respect of diesel in Northern Ireland remains an issue, but one that is being addressed by HMRC as the overall percentage tax gap in respect of hydrocarbons oil duties across the UK has been reduced by almost a half between 2005/6 and 20012/13.

HMRC have had a number of notable successes in Northern Ireland including the uncovering of the largest ever toxic waste dump linked to diesel laundering in the UK on 4 November at Forkhill, when 2,000 litres of illicit fuel were seized.

HMRC’s joint top priorities in Northern Ireland remain the tackling of fuel and tobacco smuggling, and they work closely with UKBA, the PSNI and An Garda Síochána and other agencies on both sides of the border on these issue.