PRIVATE boat owners will lose the right to use red diesel from January 1, it emerged today.
Financial Secretary John Healey told the House of Commons in a heated
exchange with Northern Isles MP Alistair Carmichael that the European Commission had rejected an UK application that would have seen pleasure boat owners able to continue to purchase cheaper red diesel.
Mr Carmichael had been on the forefront of a campaign for many years to try to ensure that private boat owners would continue to benefit from cheaper diesel.The news was condemned by boat users in the Northern Isles where owning a boat is part of the lifestyle of many.
The chairman of the Shetland Marinas, Piers and Boating Clubs Association (SMPBCA), Bobby Hunter said the change meant yet another tax on people living in rural Britain.
"In a community where boats are an integral part of society.It is yet
another tax being put on us from a government that really doesn't think too much about rural and remote communities" he said.
Earlier today, Mr Carmichael had attacked Mr Healey suggesting that the fight for keeping red diesel might not have been lost had the secretary more "backbone."
Up until now, the UK has been able to supply red diesel to private boat owners under a derogation from EU rules. This derogation has now not been extended.
Mr Carmichael told the Government's Financial Secretary: "Can I say to him, I have pursued him on this point for a number of years now? This is something which could have been dealt with much more quickly and much sooner had he had the backbone to do it."
Mr Healey told the Commons that he was well aware that the derogation permitting the use of red diesel in Britain is highly valued by private boat owners and users.
He added: "We put the strongest possible case to the Commission. We
prepared that case in close cooperation and with contributions from many of the organisations affected. We could have done little more to press the case.
"I spoke personally with the Commissioner and have written personally to the Commission on this issue. There is no further stage in this process now."
Mr Carmichael commented: "I first raised this issue with Treasury
Ministers in 2004. Now, with less than a month to go before the derogation expires, we are told that private boats will not be able to use red diesel.
"Private boat users have been the victim of New Labour prejudices.They clearly thought that they were dealing with a few rich people on their gin palaces. The opposite is true. This change will serve to exclude many people on low incomes from enjoying boat use."
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