Cross-border Crime

Baroness Hoey Excerpts

Wednesday 11th March 2015 Commons Chamber

[Ian Paisley]

I am delighted by that, because I am going to reflect that point now and I thank the Minister for encouraging me to do so. The then Treasury Minister said that there was insufficient evidence that the process was a viable commercial option, which I think is the point the Minister has just made: “Yes, you can do this in a lab, but could you really do it in the field?” Well, the report that is now in the Library goes into this, under a section entitled, “Economics of distillation”:

“The capital cost of a distillation plant suitable for laundering out a marker from fuel is low. Cost for off the shelf plant can be as little as…£12k”.

For an initial outlay of £12,000 for a small plant, the criminals could make about £16,000 per day, after they have laundered the product, or 5.8 million quid a year—that is pretty economical in my books; that is pretty cost-effective. I will come to the in-field testing in a minute, so I hope the Minister will brace himself, because it gets even better.

The report goes on:

“Even taking into account the worst case scenario presented above, a 160kW distillation laundering plant would generate huge profits with a payback in just under a fortnight. If this process was refined with heat regeneration and vacuum distillation, it would be quite feasible to double the capacity of this system. A small 1MW industrial unit could operate 6 of these 160kW systems, generating clear profit of approximately £92,000 per day and a payback period of less than 2 weeks. Such a 960kW laundering facility would be capable of generating an annual profit of approximately £33.5 million.”

This is a feasible, cheap alternative for gangsters and criminals. This report, which is in the Library of the House, is by a credible group of scientists and, critically, presented in such a way that if it is wrong, the Dow Chemical Company could sue the pants of these people. But it won’t go near it—it won’t even address the points made.

I understand that in-field testing was carried out on four occasions. The one at Bellingham, which my hon. Friend the Member for Upper Bann (David Simpson) mentioned, was not a small test; it was a test of 30,000 litres of fuel distilled successfully—it was just distilled off. Another test was carried out in Northern Ireland, and another test of a similarly large quantity, carried out by a scientist, Professor J. J. Leahy, in the Republic of Ireland, also proved that this material could be distilled off. Queen’s university also carried out a test, but sadly, after it reported privately to officials last year, the official response to the professor at Queen’s university was this: “You’d better tell us where that illegal plant you’ve just set up is, because we want to put it out of business.” I can take a joke, but I do not think that was a joke—it is almost like they were telling him for daring to undermine what officials were doing. It is hypocrisy.

[Kate Hoey (Vauxhall) (Lab)]

As well as congratulating the Select Committee on Northern Ireland Affairs, I congratulate the hon. Gentleman on the huge amount of personal commitment he has put into this issue. Will he explain why, despite the evidence that the Select Committee saw, the Government, officials and the authorities have been so singularly afraid to go down the route we suggested?

[Ian Paisley]

I think that deserves a more detailed answer than a brief response at this point, so I will come back to the matter. The hon. Lady, my friend, puts her finger on a very important and worrying point. This was a worrying trend that we watched with our own eyes when we tried to deal with this matter.

I asked the Minister earlier whether there was roadside capability in detecting this marker in our fuel, but he did not quite get the right end of the stick. I must deal with this critical issue. The head of the oils fraud section takes the lead in dealing with fuel laundering in Northern Ireland. He is an important official in the department. He gave evidence to our Select Committee in 2013, and he told us that the IMS tendering process for the new fuel marker was incredibly important. Although a specific roadside test was not specifically asked for, his view was—and he is the expert—that it was critical because it was the one measure through which the system could be policed.

One of the companies that tendered brought forward a roadside test capability—a kit that is the size of a laptop. If a drop of fuel was put on to a pad, the kit could detect within two and a half minutes where and when the fuel was bought—both the location and time. That is how sophisticated the marker was, and the roadside test could be done in two and half minutes.

The Dow marker has no roadside capability. In fact, after the April fools’ day legislation comes into place, let me explain what will happen. If an official stops a vehicle and takes a sample from it, he will have to send it away to the Government’s own plant. Three weeks later, the sample will be returned and the result on whether the Dow marker remains or has been removed will be provided. Why should we have to wait three weeks? Unless someone has a very efficient car, as my hon. Friend the Member for East Antrim (Sammy Wilson) does, the fuel will be evaporated within days.