More Customs officers, new equipment and targeted intelligence will help smash criminal gangs behind illegal diesel rackets, the
Government announced today.

Cowboy businesses which use illegal diesel to undercut their honest competitors can also expect to be hit hard by Customs as part of a new strategy to reduce the problem of illegal diesel, which cost £450m in 2000, to just 2% of the market.

Launching the Government strategy in Manchester today, John Healey, Economic Secretary to the Treasury and Customs Minister, said

"Illegal diesel is a danger - to the honest motorist whose engine is wrecked by acids in it, to the revenues which could fund new
hospitals and schools, to the honest businesses which find their livelihoods threatened by cowboy operators, to our countryside which has toxic waste dumped in it, and to us all as criminal gangs fund their activities and lifestyles through these rackets.

"The Government won't tolerate these dangers to us all and has put in place action which will cut this problem to only 2% of the market."

Operating some of the new equipment, John Healey, pointed to the extra effort

Customs can now put in to their fight against oils fraud:

"There will be more Customs investigators to break up the gangs and more officers on the ground to challenge vehicles - all working with the best intelligence from a new central unit of specialists.

"These officers will have new detection vehicles to find an additional marker which we have already introduced into red diesel
and kerosene. Customs will do more, and do it smarter - a powerful combination"

The Government's strategy is a comprehensive one combining extra enforcement effort with a new authorisation scheme for oils
distributors that will be introduced by Customs from 1 April 2003. This scheme will provide Customs with information on who buys red diesel and kerosene and will make it harder for fraudsters to get hold of these fuels as distributors make sensible checks on who is buying from them. The authorisation scheme is an essential part of the Government strategy and Customs are working with the honest trade to ensure that the burdens on them are kept to the barest minimum.

Highlighting the need to protect the livelihoods of honest businesses, John Healey continued:

"Illegal diesel fraud threatens honest businesses whether it be honest hauliers, coach operators or reputable oils distributors.
Customs interest and focus is only on the criminals and the cowboys - they'll be working with the honest distributors to tackle these
people."

Commenting on the Government's strategy, Richard Turner, Chief Executive of the 11,000 company Freight Transport Association says:

"Lorry operators who use red diesel are criminals. By avoiding paying duty on the fuel they use they are not only robbing the national exchequer but are conducting unfair and illegal competition against the enormous majority of honest operators who are paying for, and using, legal, duty paid diesel. And the chances are that if they are cheating on fuel then they are cheating on other matters - drivers' hours, vehicle maintenance, insurance and much more.

"The Freight Transport Association fully supports Customs & Excise activity in finding and prosecuting these cheats. Such cowboy operators bring disrepute to an industry which is so vital to the economy and to the consumer."