Fuel Laundering

Debate between Gregory Campbell and Ian Paisley

Tuesday 22nd May 2018 Commons Chamber

[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.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does my hon. Friend agree that, in addition to the substantial amounts of money that the Treasury is losing, an issue that is sometimes not highlighted is the danger of the damage done to vehicles? Some of these illicit fuels are poisoned and treated very badly so that these people can maximise profits.

[Ian Paisley]

If we start to go down that line, the costs are in many ways incalculable. We need to bear that in mind.

The Organised Crime Task Force recounts a case study of an organised crime gang that evaded duty of more than £3 million. It had laundering plants in 13 locations, at one of which the police seized approaching £300,000 in cash. They also seized 72,000 litres of illicit fuel that was being sold to unsuspecting motorists, like my hon. Friend the Member for East Londonderry (Mr Campbell) said. Nine people were convicted, and two custodial sentences were handed down amounting to—listen to this—just 16 months in prison. Seriously? A multimillion-pound crime gang and they get 16 months in prison. What sort of disincentive to criminality is that?

The Government will no doubt point to their new fuel marker, which they introduced in conjunction with the revenue and customs people in the Republic. They claim that it is particularly special and

“significantly more resistant to laundering”

than old markers. Given that old markers could be laundered through a sieve, that is not actually a good recommendation. They also boast that there has been a

“reduction in laundering plants discovered”.

That boast is hollow, as it means that the authorities cannot find the laundering plants.

I will tell the House why that is so. Previously, removal of the marker left an environmentally hazardous sludge that ultimately gave away the launderers’ locations and caused a multimillion-pound hazard that the local authorities had to pay hundreds of thousands pounds to clear up. The new so-called more effective marker can be removed via the process of distillation, leaving no environmental waste at all—it simply evaporates—hence the carefully crafted words of the report. If the laundering plants do not leave any trace, they will be much harder to find, so fewer plants will be discovered. On the fact that the new marker can be distilled off the fuel, I leave this thought with the House: many people in Northern Ireland know a lot about distillation. They have been distilling a produce in Northern Ireland for very many years, so it is now so much easier to commit this crime than it was previously.

Let me turn to the substance of my argument; I hope that the Minister will respond to these points. This is not a uniquely Irish problem. Because a blind eye has been turned to stamping it out, organised crime gangs are exporting this crime across the Irish sea. A case study produced by the Government’s Organised Crime Task Force recounts how the

“fuels may move across the EU borders without supervision”.

If ever we were going to get a warning that we need more friction on our border in respect of this issue, this must be it.

In 2016, there were 80 movements of ISO tanks—tank containers built to the standard of the International Organisation for Standardisation—containing 26,000 litres each. The Government estimate that millions of litres of this oil were smuggled before it was identified. The crime amounted to millions of pounds in lost revenue for Her Majesty’s Exchequer—and this is just one operator. Such crimes have a devastating impact on our haulage industry, as my hon. Friend the Member for South Antrim (Paul Girvan) said earlier.

At the weekend, three Secretaries of State visited Northern Ireland and heard at first hand from the haulage industry. The industry took the opportunity to spell out the following, saying that organised crime gangs

“are now exporting laundered diesel to GB on an industrial scale using bulk containers contained inside curtain slide trailers. This is of huge concern to Roll on Roll off operators on the Irish sea as it is hazardous cargo, is not manifested or transported safely”.

A potential disaster looms that would make the Zeebrugge disaster look insignificant. This operation is being used to supply illicit vehicle operations across England. The Government promise that legitimate trade must not be interfered with or delayed, as a result of Brexit, between our islands and on our island. I agree wholeheartedly with that position, but to have confidence, illicit trade must be stamped out. The Government must not sacrifice their principles on ensuring that we have open trade. They must not allow criminals to get away with it. We must deal with the criminal elements, because they are rubbing their hands in glee, looking at the opportunities that Brexit will open up for them.

There are 5,730 licensed commercial vehicle operators and 22,000 licensed goods vehicles in Northern Ireland. Some 27% of Northern Ireland licences are international hire and reward work compared with an average of 10% here on GB mainland. Therefore, this is big business in Northern Ireland. Some 27,000 people are currently employed in the transport and storage industries in Northern Ireland, and fuel represents about 32% of the operating costs of those industries. It is obvious from those figures that illicit traders can destroy a legitimate business by focusing on the sale of illicit fuel, and put a legitimate operator out of work overnight.

Our duty on fuel is, of course, the highest in Europe and it is unlikely to fall, so the pressure on legitimate trade and the opportunity for the criminal grows. Last month, I met people from the Petrol Retailers Association. They are appalled at how easy laundering has become. They have identified a number of sites across Northern Ireland that are openly run by criminals, and yet nothing has been done about it. I was going to use privilege this evening to read out the names of 12 illicit trade operators across the United Kingdom that have been given to me by the Petrol Retailers Association. I would get a very easy headline, but I will not do that, because I am not here to embarrass the Government. I am not here to try to pull that one on them, but I do make a plea to the Minister that if we know who these people are, and if their names are easily circulated between the police, the association and the operators, surely something must now be done to stamp them out. I hope that the Minister will push that matter back to the authorities and tell them that we want these criminals dealt with, and that we want to see examples set.

I have three pleas to make to the Minister this evening, and I hope that he can respond to them. The first is in the words of the Petrol Retailers Association. Let me quote again from the letter:

“I firmly support you and your colleagues in demanding from Government a fresh look at the real impact of this HMRC marker initiative and a renewed commitment to tackle the heinous problem of illicit fuel which has spread to the mainland.”

Secondly, I want the Government to review the sentencing policy and practice of those caught engaging in this heinous crime. Finally, as Brexit approaches, let us use this as an opportunity to make the United Kingdom have the gold standard fuel marker and to put in place a proper and effective British marker that works and stops this illicit trade. I hope that the Minister will be able to respond positively to these matters and offer me the opportunity to meet senior officials to address them.

Northern Ireland Budget Bill

Debate between Gregory Campbell and Ian Paisley

2nd reading: House of Commons & 3rd reading: House of Commons & Report stage: House of Commons
Monday 13th November 2017 Commons Chamber

[Ian Paisley (North Antrim) (DUP)]

I have had the opportunity to make a number of interventions throughout this evening’s debate, so I will make only some short remarks now.

I cast Members’ minds back to the middle of the last couple of decades, when we were going through the negotiation process. At that point, my party made it clear that it was reluctant to go into a particular government until certain demands were met. There were previous times before that when other Unionist parties made similar claims and drew similar red lines. The then Government party and the then Secretary of State, who is now in the other place, made it clear that a certain train was departing a certain station, and that if the Democratic Unionist party and other Unionist parties were not on board, that train would depart without them. Not only would it depart without them, but government would then happen without them and they would be left sitting on their hands. In Lloyd George blackmail mode, that was what was held out to people in Northern Ireland, and it was clearly meant that that was going to happen.

The interesting thing at the moment is that there does not seem to be the belief on Sinn Féin’s side that the Government are actually prepared to follow through with such an offer. If the train is leaving the station, Sinn Féin should be on board and it should play its role. If it is not prepared to be on board, the train should depart without it and we should be allowed to govern without it.

The Government do not want that to be the case; they do not want it to be on the agenda. They want everyone to be singing and on board the same little train going forward. Well, if the members of one party are blocking progress, they cannot be allowed to pull the safety cord on that train, bring things to a halt and say that nothing else happens without them.

It is incumbent on the Government to recognise that if they are not prepared to let the train of devolution go forward without Sinn Féin’s participation on its terms and its terms only, it is about time that they stepped in and allowed devolution without Sinn Féin or had direct rule. Tonight, we are standing at that point. Will it be direct rule, or will it be devolution without Sinn Féin’s active participation? I do not think the Government have the guts to go for the latter choice, and I think they are now timidly being pushed towards direct rule.

I said in one of my interventions that it is essential that we do not have drift in Northern Ireland, because there is a certain type of Irishman who will fill the vacuum. We saw a bit of that yesterday in Omagh, and we have seen a bit of it today in Londonderry. Certain people will try to fill the vacuum with violence, and that is not acceptable.

The Government have to move, and move expeditiously. They cannot allow themselves to be seen to be pussyfooting or taking this issue quietly and slowly. They have to make sure that they take strides with determination to implement this budget measure and then, within a matter of weeks, move to the next phase of direct rule. That will mean preparation and money being spent on preparing the Northern Ireland Office to have new Ministers drawn into it from this place and from the Government side of the House to help govern Northern Ireland.

The decisions my constituents want taken with regard to healthcare, education and infrastructure will require ministerial direction and ministerial determination. It is unacceptable that we have a situation, starting tonight, where, no matter how nice a gentleman he is, the head of the Northern Ireland civil service will be completely unanswerable and unaccountable to anyone in this democracy. That situation is not acceptable, and we cannot let it run for weeks on end. It has to end immediately, and the Secretary of State needs to take determined steps to see that that is the case.

When the Secretary of State spoke tonight, he made it clear that civil servants will act within certain boundaries, but they do not have to do that. If they made a decision the Secretary of State did not like, he would have to take the head of the civil service to court. That situation is unacceptable, and it cannot be allowed to continue or even to get off the ground. We need to make that very clear.

The decisions that are coming up are coming up rapidly. Police pay, police recruitment and police retention are key issues we hear about every day and will require political direction. On other issues, Northern Ireland wants to be an events location. Next year, a major golf tournament is coming to the constituency of my hon. Friend the Member for East Londonderry (Mr Campbell). The year after that, there is the British open. Decisions will have to be made in January next year to let those events go ahead without any problem.

We will also have our Milk cup, or SuperCup, football tournament, and events to do with the North West 200. All the decisions on the finance of those events, and all the decisions to do with whether we have the Red Bull air races taking place in Northern Ireland, will have to be made in January. That will require political direction and political determination. Those decisions will not be taken by a civil servant; in fact, civil servants will be reluctant to go anywhere near those issues and to start making those decisions, because they might be too controversial for them.

As the independent chairman of the Northern Ireland taskforce on motorsport, I want to know, and I ask each week, what will happen to the needs of motorsport in Northern Ireland. It is a huge industry generating tens of millions of pounds for the local economy in many parts of our country, yet we do not have political decisions being made about how moneys will be allocated to events and events funding in Northern Ireland.

It is perverse in many ways that with tonight’s decision we will be having more British rule in Northern Ireland—and with no more of an Irish dimension. The fact of the matter is that Sinn Féin has brought about a situation where it now appears to be in a worse place, as an ideology, than it was in 1997 and in 1985. While Unionism was on the back foot and being pushed out of its sense of place and sense of nationhood, we now have Sinn Féin putting its community in a very difficult situation.

[Mr Gregory Campbell]

Does my hon. Friend agree that it is supremely ironic that the decisions taken over the past few weeks and months by the party of “Brits out” has resulted tonight in “Brits in”?

[Ian Paisley]

I agree that it is a case of “Brits in”, but of course the British have never left, and could never be bombed out, bullied out, pushed out or got out, because it is our land—our country—and we are staying there, so I never really subscribed to the view that we were “out” in the first place.

The call to have an Irish dimension as part of this process has fallen on deaf ears. There is no role in the new mechanism that we are now in—this “twilight zone”, as it has been called—for the Irish dimension. That has left nationalists and republicans bereft of any sort of foothold in the process going forward. That is entirely their fault. We live in a divided community. We have a society that is split and we have to try to heal it. We can do that only when we have responsible politicians on the side of Sinn Féin, the SDLP and others coming forward and being prepared to lead their community away from the abyss that they have taken it to. It is sad that they have decided to do that, but they have done it and it is their responsibility.

My party is up for devolution. We put an awful lot of effort into it. I know the sacrifice that was made by many people in my party and many people on these Benches. I know the personal sacrifice that was made by my father to get devolution up and running. It saddens me that it is coming to an end, but I shed no tears for it when I see the mess that some people would try to make of it. If people want to squander it and make a mess of it, let us bring it to an end and finish it. Let us have direct rule and get on with governing our people in a sensible way.