Fine Gael Dublin Mid-West TD, Derek Keating, is calling for a special six-month Garda operation to be set up to specifically target fuel smugglers.

Deputy Keating made his call after he received confirmation from the Minister for Finance, Michael Noonan, that enforcement is considered to be the most effective way of combating the practice.

He said: "Fuel smuggling as an illicit trade is having a hugely negative impact on our economy. Those involved are not only depriving the State of tax revenues, they are putting motorists in a situation where they may be unwittingly putting unsafe fuel into their cars. It also gives unscrupulous hauliers an unfair advantage over those who are trying to uphold the law and keep their heads above water in an industry that has been severely hit by rising fuel costs. This is a dangerous and criminal activity, and must be stamped out.

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"In a Parliamentary Question I tabled this week, I asked the Minister for Finance whether the current two-colour diesel fuel system could be abolished and replaced with a rebate system for tax compliance hauliers.

"The Minister said such a system would not be effective and would still be open to abuse. He is of the view that the establishment of an extensive repayments system would give rise to a significant administrative burden and cost for oil traders, users and Revenue, as well as posing significant cash-flow costs for those who currently use marked oil."

At the meeting the Minister also pointed out that is there was a move to a repayments system those involved would still have the possibility of sourcing UK marked oil for laundering.

Mr Keating concluded: "I accept the Minister's views on the issue, and as a result, I am calling for a special six month Garda operation to be set up to specifically target fuel smuggling. This would allow for a targeted crack-down on the illicit trade. I believe this focussed approach of enforcement, combined with ongoing controls on the sale and distribution of oils, would bring significant dividends for the State."

(CD/GK)