IRA financed by illicit fuel

OIL laundering plants seized last year by customs were capable of producing up to 30 million litres of fuel per year.

The illicit fuel was worth more than €20m in petrol stations in Northern Ireland - and would have earned paramilitary and criminal organisations tens of millions of euro profit.

The scale of the seizures - outlined in the Revenue Commissioners 2002 Annual Report - underline the booming and lucrative trade in illegal fuel, largely controlled by paramilitary groupings.

The annual report, published yesterday, said the potential loss of revenue to the State if the plants were not uncovered would have been more than €10m per year.

The report said eight plants were detected in 2002 - all along the border.

There were four in Co Louth, three in Co Monaghan and one in Co Donegal. Customs officers arrested one person.

Last year, a report estimated that almost €600m was lost every year to the British Exchequer as a result of oil smuggling.

An estimated 60% of the North's filling stations are involved in selling illicit fuel.

In a separate report by the Northern Ireland Organised Crime Task Force, it was estimated the IRA earned about €12m a year from smuggled fuel and that the Real IRA earned €8m per year.

At least one of the large plants uncovered last year, in Kilcurry, near Dundalk, was linked to the Real IRA.

Paramilitaries are also heavily involved in other smuggling enterprises, such as cigarettes, counterfeit products and alcohol.

The Revenue report shows that in relation to tobacco:

There were 4,024 seizures in 2002, compared to 2,291 in 2001.

The seizures in 2002 had a retail value of €20.4m, compared to €40m in 2001.

The loss to the Exchequer was €16m in 2002, compared to €32m in 2001.

The report noted that airports were being increasingly used by smugglers.

Eight people were arrested for smuggling, five of whom received prison sentences.

Customs made 89 commercial alcohol seizures in 2002, amounting to 38,548 litres.

The alcohol had a retail value of €625,902, with a revenue loss of €330,714.

Some 15 court proceedings were issued as a result.

Revenue pointed out that there were 299 seizures of counterfeit goods, consisting of 91,407 items, with a street value of around €2.87m, in 2002.

Customs made 660 seizures of illegal drugs last year, with a street value of around €34m. This compared to 1,224 seizures, with a street value of €61m, in 2001.

Herbal cannabis continued to account for the bulk of the seizures, of which a large percentage were destined for the British market.