Controls help campaign against fuel smugglers

NORTHERN BUSINESS: Tighter controls on the distribution network for rebated fuels - fuels that attract a reduced rate of excise duty - will "greatly enhance" the campaign against smuggling in the North.

Customs spokesman Mr Martin McDonnell said pilot operations - where fuel can be tracked from the point of production to distribution - had yielded detection rates 10 times higher than normal. From now on, all new and existing fuel distributors will need approval from Customs and Excise before being allowed to trade in rebated fuels such as red diesel, intended only for agricultural use, or kerosene, produced for domestic heating.

In addition, distributors will be required to keep normal commercial records on transactions and compile monthly returns detailing the quality and types of fuel supplied. It is expected that the new Euro Marker Solvent Yellow 124 - a chemical marker and dye that will be added to all rebated fuels from August - will make it more costly for fraudsters to avoid detection when illegally selling cut-price fuel to motorists.

It is estimated that fraud combined with legitimate cross-Border shopping cost Northern Ireland more than £200,000 sterling (€326,317) in lost fuel in 2000. "We had managed to keep the lid on what had been a rapidly escalating problem but these measures will greatly enhance our anti-smuggling activities and help drive down the level of fraud taking place," said Mr McDonnell.

An increase in Customs personnel last year to 160 from 25 meant fuel seizures more than doubled. Vehicles seized since that date have trebled.

Since last April 17th plants for laundering chemical markers in fuel have been dismantled.

The Security Minister and chairwoman of the Organised Crime Task Force, Ms Jane Kennedy, recently met representatives from financial, legal and accountancy professions to discuss ways to curb profits from organised crime.

She said the Proceeds of Crime Bill going through Parliament would strengthen the law on financial investigation, money laundering offences and confiscation.

From January 1st Customs will begin to approve distributors. The scheme comes into full effect from next April.