Donegal Labour Senator Jimmy Harte called for a 32-county solution to diesel laundering. "There is fuel laundering along the Border, from Derry to Dundalk and now as far south as Dublin,'' he said. He added that there was a massive opportunity for people to make huge profits on a single tanker of diesel.

Mr Harte said he knew of a case in Donegal where the garage owner was convicted but the garage continued to operate and everyone knew where the diesel was being laundered.

“Some garages reopen the day after being raided,’’ he added. “These people are willing to lose the cost of one day’s trading for the massive profits.’’

Mr Harte said smuggling had been going on since the Border was established.

“Some people have made a lot of money out of it and criminals have used it to enrich themselves,’’ he added. “It will continue until we devise a solution.’’

€120 million-plus cost
Fellow Donegal Senator Brian Ó Domhnaill (FF) estimated that the annual cost of diesel laundering to the taxpayer was between €120 million to €150 million, although the figure could be much higher.

He added it also had consequences for consumers who purchased laundered fuel in the belief they were getting value for money.

“While they may be able to buy fuel at a lower price than that available at legitimate fuel suppliers, I know an individual in Donegal who had the engine of his car wrecked as a result of buying laundered diesel,’’ Mr Ó Domhnaill added.

Minister of State for Finance Brian Hayes said Revenue had made action against illegal fuel-related activities one of its top priorities and had adopted a comprehensive strategy.

“There is an intensified targeting, in co-operation with other law enforcement agencies on both sides of the Border, of fuel laundering,’’ he added. “That has been ongoing.’’

Mr Hayes said one of the objectives was to cause maximum disruption to laundering plants and networks and to prevent trading by stations operating outside the law.