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Ibec: Zero tolerance to black market

Ibec has called for a “zero-tolerance” approach from the gardaí and the courts when it comes to tackling black economy, which it claims is costing the exchequer more than €860m a year in lost revenue.

The black market and retail crime will cost the taxpayer €4.6bn over the next five years unless the Government tackles the problem, according to Ibec.

The employers’ representative body made the call via Retail Ireland, its retail industry representative, which produced findings showing 12% of diesel sold in Ireland is illegal; 25% of cigarettes sold here are sourced from the black economy; and attempts to import counterfeit goods increased by a quarter during 2010, alone.

Within a sector that is already struggling, Retail Ireland said the increase in crime is also leading to thousands of job losses as employers cannot afford the lost revenue.

In a new report, Tackling the Black Market and Retail Crime, the organisation makes a number of key recommendations, including the reduction of current and future state payments, benefits and concessions for persons and businesses found guilty to the value of the loss to the exchequer of the goods smuggled, counterfeited or stolen. Custodial sentences should also be imposed for the most serious of offences, it said.

The report also calls for Garda resources to be redeployed into enforcement activities from other areas, such as routine road traffic policing. Rewards of up to €10,000 should be given to whistleblowers who report an illegal trade which results in a summary conviction. An awareness campaign should also be launched, alerting taxpayers about the additional burden they have to pay because of the criminal actions of a few.

According to Retail Ireland chairman Frank Gleeson, “the retail sector — already on its knees because of the collapse in consumer spending — is the worst affected by the sale of counterfeit and smuggled goods”.

“Retail sales have fallen by over 30% since the start of the recession and thousands of jobs have been lost. It is vital that the sector is not further squeezed by illegal criminal activity,” said Mr Gleeson.

“The scale of the lost revenue means it makes economic sense to invest more in tackling the problem. Additional Garda resources are required and much tougher sentences are needed as a deterrent.”

According to the report, the biggest drain on the State’s coffers is illegal tobacco which, it says, costs the taxpayer €526m. However, it admits that figure does not tally with one provided through a parliamentary question, which said the amount was €250m. However, it is clear that industry has lost out on €500m worth of sales and there have been 700 jobs lost as a result.

The next biggest loss to the exchequer is through fuel laundering — 52 filling stations have been shut by the Revenue Commissioners for not having a licence or being in breach of licensing conditions. Shoplifting and theft cost the State €110m, the report found. However, the total loss to the retailers themselves was €480m, up from €350m in 2005. Home

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