UK. British Marine Federation & RYA meet with HM Revenue and Customs
regarding red diesel derogation Wednesday, 13 December 2006
On Thursday last week it was announced that UK leisure boaters were to lose
their ability to use low-duty red diesel.
The European Commission rejected an application to extend a derogation
allowing use of the fuel. The current derogation runs out on 1 January 2007.
Neil Northmore, RYA Government Affairs Adviser reports: “We met with HM
Revenue and Customs (HMRC) officials this week together with the British
Marine Federation (BMF) to discuss the Commission's decision and find out
Government's initial thoughts on timescales and process.
At this stage it is clear that the price will not go up on 1 January 2007.
The reality is there will be a period of time in which boaters will continue
to benefit from the low duty rate, and the earliest this can change is
Summer 2007.
Changes can only be bought about through primary legislation i.e. the
Finance Bill and it is highly unlikely that they will be in a position to do
this in the next Finance Bill, which is due April 07.
To give a clear timescale is hard at this stage for Government as they are
currently planning how to take matters forward. It is clear that further
technical research into the implications of the change from low duty red
diesel is required, and there must be implementation planning for the
transitional period. It will also be necessary for the Government to conduct
a public consultation at some stage next year.
The RYA is urging Government not to rush the decision and to exercise all
due diligence to ensure that new measures are reasonable.
Together with the BMF we are working closely with HMRC and will keep you
updated on any developments”.
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UK. British Marine Federation updates red diesel derogation situation
Wednesday, 13 December 2006
The news on Thursday 7 December that the EU Commission has rejected the UK's
application for the retention of the current derogation on red diesel is
very disappointing. It will have an impact on the boating market and
business implications for some companies in the industry.
The Seeing Red Campaign, run by the British Marine Federation (BMF), the RYA
and the Inland Waterways Association (IWA) was successful in many respects.
Through our efforts the UK Government recognised and accepted the problems
that the loss of the derogation would bring and fought for the derogation to
be retained. However, despite the considerable efforts of the campaign
partners and the Government, we were unable to halt the EU's march on tax
harmonisation.
Bad news yes, but there is no need to panic
Although the derogation officially ends on 31 December 2006 nothing will
happen for the moment. The Government has to work out what measures are
necessary, how to enforce them and in what timeframe this will take place.
The Treasury Minister, John Healey, made it clear to the responsible EU
Commissioner that the UK will need a clear transitional period in which to
implement the changes required particularly as legislation at the UK level
will be required to implement the EU Directive. Members can be assured that
the industry will press for the longest possible transitional arrangements
so that the boating community has time to prepare
So what does this mean for the industry?
We are faced with the following difficult facts:
Once the UK Government implements the levy increase the industry will not be
able to sell reduced duty red diesel to leisure boat users. Leisure users
will have to use Ultra Low Sulphur Diesel (ULSD - the same diesel used on
the High Street).
Commercially operated vessels will still be able to use red diesel.
Marine businesses will need to take commercial decisions on the markets they
wish to supply. Companies supplying the leisure market will need to source
supplies of ULSD and provide the infrastructure to dispense it. This could
include the need to industrially clean the red dye out of existing tanks and
pumping equipment or invest in new tanks and equipment.
So what happens next?
The first move is the Government's. They need to consult with the industry
following the Commission decision. We have already arranged meetings with
HMRC officials and the Treasury Minister so we can start the consultation
process and move forward in a pragmatic and informed manner. The BMF will
involve members in the Government consultation and will be pressing for a
lengthy transitional period in order for companies to be able to business
plan and implement the necessary changes.
We urge members to work with us through this difficult process so that we
can ensure that the industry can continue to prosper.
--
Regards
Michael Clarke
Email: michael...@skynet.be
Web: http://www.petroleumblownaparte.eu/
The Channel Islands and the Isle Of Mann are not in the EU...will they be
keeping red marine diesel?....not as though I am comteplating going to the
IOM again ;-)
--
Neil Arlidge - NB Earnest - The Wilderness years...
Follow the truly independent TNC at : http://www.tuesdaynightclub.co.uk
Visit this site and help save our waterways from the DEFRA cuts
http://www.saveourwaterways.org.uk/
No idea what they supply as a marine diesel fuel but I suspect that it might
be white at a very reduced price and therefore there is or was no need to
have or have had red - just a guess.
>Michael Clarke wrote:
>> Latest news on red diesel issue - press releases from the RYA and BMF
>> - see below.
>
>The Channel Islands and the Isle Of Mann are not in the EU...will they be
>keeping red marine diesel?....not as though I am comteplating going to the
>IOM again ;-)
Jersey is (in effect).
See the story on
2006 September 7.
Adrian
Adrian Stott
adr...@spam.co.uk
07956-299966
So lets say a 80 year transition period.
40 years for the new tanks and infrastructure to be in place, then another
40 years for all the boats to be converted.
That seems about right, by which time EU Tax harmonisation ( if there's a
more crazy EU proposal I haven't heard it ) will be as dead as a dodo.
I go to the IOM quite often (I manage our RS on Snaefell summit), but
I don't usually take Draco and I don't think the airlines would
appreciate the jerry cans :->
Mike
--
Mike & Krystyna
tug Draco
http://www.draco.org.uk
http://www.keepsakes-puppies.co.uk
We never topped up NB Ocean Princess at the marina in Douglas inner harbour
as we had plenty of diesel left, having only just filled up at Inverkip
Marina, on the Clyde.
James must have lost out! :-)
"JP" <no...@noone.com> wrote in message
news:IMSdnSrB85E...@pipex.net...
:
: "Michael Clarke" <michael...@skynet.be> wrote in message
: news:45811911$0$31471$ba62...@news.skynet.be...
: > Latest news on red diesel issue - press releases from the RYA and
BMF -
: > see below.
: snip
:
: So lets say a 80 year transition period.
: 40 years for the new tanks and infrastructure to be in place, then
another
: 40 years for all the boats to be converted.
Now that I like the sound of, it keeps every one happy, we are doing what
the EU tell us, we aren't damaging the business and we all carry on as
before. Is that what they call Win Win ?
--
Brian Ancient Order of Sewer Ants
Visit this site and help save our waterways
The industry cannot sell red but does that mean that other fuels may be
used?
I am thinking of other sources of low tax kerosene as a base for a fuel.
TonyB
EU rules set a minimum level of taxation for all (mineral oil?) fuels.
AIUI, the only way this is relaxed is through derogations, like the
one that is to expire wrt using lower-taxed mineral diesel for
pleasure craft propulsion.
>On Sun, 17 Dec 2006 17:04:59 +0000, Adrian Stott <adr...@spam.com>
>wrote:
>>EU rules set a minimum level of taxation for all (mineral oil?) fuels.
>>AIUI, the only way this is relaxed is through derogations, like the
>>one that is to expire wrt using lower-taxed mineral diesel for
>>pleasure craft propulsion.
>
>The EU minimum is far less than the tax set by UK.
For white, yes. Hence the idea of introducing a fuel taxed at the EU
minimum, that is legal for pleasure craft propulsion.