Have your say on impact of red diesel ban
Sailors have until 9 September 2019 to comment on plans by the UK Government to ban red diesel for the propulsion of recreational boats.
Both the RYA and the Cruising Association (CA) are urging cruisers to respond to the consultation to give Her Majesty’s Revenue and Customs (HMRC) a clear picture about the impact of changing from red to white diesel.
The move comes following a ruling by the Court of Justice of the European Union (CJEU) in October 2018 which found the UK wasn’t complying with the EU’S Fuel Marker Directive (95/60/EC) by allowing red diesel to be sold on a 60/40 split of full and lower tax rates for propulsion, and heating or power generation. Under EU rules, fuel can only be sold at less than the full tax rate if it is marked with a dye.
Sailors should experience no change in red diesel use both in the UK and overseas until the UK Government makes changes to existing legislation.
The RYA, CA and British Marine have all raised concerns about fuel availability for sailors if red diesel was banned, especially in remote areas like the popular cruising grounds of the West Coast of Scotland. Here, the fuel infrastructure is set up for the large commercial fishing fleet market, which only uses red diesel.
The head of public affairs, policy and research at British Marine, Brian Clark said due to the cost of tank installation and the ‘potential irregularity’ of boats using white diesel, fuel suppliers in these areas are less likely to offer both types of diesel.
‘Sailors will either have to travel further to fuel up or will have to bunker white diesel which has significant potential healthand-safety and environmental implications,’ he stated.
Fuel suppliers in areas like the south coast are expected to provide white diesel if the ban goes ahead.
Clark would also like to see a long transition period of several years to give the dye in red diesel a chance to pass through most boat fuel systems.
‘Further clarity on enforcement is required to ensure the industry has the appropriate timeframe to adapt. In addition, we would call on HMRC to provide financial incentives and support to ease this transition, such as contributing to the cost of holding tanks installation,’ he added.
The CA president, Julian Dussek believes HMRC should have done a ‘proper statistical survey’ of red diesel users rather than rely on a consultation, as the number of boaters responding ‘might not be large enough to be helpful or representative’. The RYA has made clear that in the event of a no-deal Brexit it will be urging the Government to ignore the CJEU ruling. Its director of external affairs, Howard Pridding, said: ‘I have looked a lot at Brexit and spoken to as many politicians as possible and a number are saying that the Government plans to honour the existing judgments by the CJEU, but this is not cast in stone. We are arguing that if there is a no-deal Brexit then why implement the CJEU’S ruling?’
He is also concerned that the cost of fuel could increase due to infrastructure changes, deterring future boating participation.
Further details are at: www.gov.uk/ government/consultations/ implementation-of-the-court-of-justice-ofthe-european-union-cjeu-judgment-ondiesel-fuel-used-in-private-pleasure-craft.