Marine Forum

Red Diesel

Anonymous user

26 June 2007 11:10:31

Joined: Unknown | Posts: Unknown

Does anyone know when this is going to be decided?

What's the chance of buying buying petrol at "red" prices?

Red Diesel

Anonymous user

27 June 2007 18:59:18

Joined: Unknown | Posts: Unknown

European Commissioners in Brussels will make a decision on Tuesday 4 July which could affect the future of the maritime leisure industry in the South West.

At the moment leisure boats in this country are allowed to use cheaper red diesel - which the Commission taxes at a lower rate than roadside diesel through a temporary derogation granted to the UK.

But that is due to end on 31 December 2006.

A survey by the Royal Yachting Association claims 54% of recreational boat owners said they would or may have to give up boating altogether if there's a dramatic increase in the price of red diesel.

Clive Singleton operates a passenger charter boat out of Falmouth.

He recently bought a new vessel - the cost - £250,000. He concedes that some wealthy boat owners can afford an increase in prices - but says they are in the minority.

Price jump

At the moment to fill up his tank with red diesel costs around £500.

But if the derogation comes to an end that would rise to around £1200, and could quickly result in his firm going out of business:

"What we must not forget is this is going to affect the man that goes out with his family in a little 15 boat with a diesel engine.

Fishing for pleasure right up through the scale, and all the industries around it: the cafes, the support industries and everything for the marine industry.

"It is more than the price of fuel, it will send shock waves through the industry."

Treasury backing

There is heavyweight backing for the boaters in the shape of the treasury, which announced in the budget that the government would apply for an extension of the derogation.

But Simon Collis of Motor Boat Monthly magazine, which is leading the campaign to have the derogation extended, says there is no telling how the commissioners in Brussels will vote:

Simon said: "It is very hard to know on what basis they will make the decision.

"This goes in front of the 25 countries and we do not know how they might decide to vote. It is likely there will be some horse trading."

Business impact

And well aware of the impact an increase in diesel costs would have, South West MEPs such as Labour's Glyn Ford have already started lobbying the Commission:

Glyn Ford: "It is not for the European Parliament to decide but the Commission is very much influenced by the Parliament.

"They are interested in building up brownie points with the MEPs for when things are a bit tougher."

Our influence is not as great as Glyn Ford's though.

The Politics Show tried for three days to get some kind of short statement about the issue from Brussels - but to no avail.

Glyn Ford's feeling is that the derogation will be extended, but that the Commissioners will indicate it is for the last time.

So the chances are boaters will be able to relax for the moment. However it may only be a stay of execution.

Politics Show

The Politics Show wants to hear from you.

BBC - Friday, 30 June 2006, 15:20 GMT 16:20 UK

Red Diesel - Red Diesel - Red Diesel

Anonymous user

27 June 2007 19:05:41

Joined: Unknown | Posts: Unknown

from the RYA site...

"Red diesel RYA resources
Using UK purchased red diesel in other EU states

RYA news story 15/06/07
Following the news of a recently publicised case of a British yacht stopped by Dutch Customs Officers and fined due to the red diesel in its tanks, and an equally publicised erroneous communication between the Dutch Embassy and UK Revenue and Customs, the RYA has reiterated its advice to British boaters planning to take their vessels containing red diesel to other European countries.

According to the RYA’s latest information received from the European Commission regarding the purchase of “red diesel” in the UK before 1 November 2008:

“In case of fuel transported in the normal fuel storage tank, the excise duty is chargeable in the Member State of acquisition according to the national rules. It falls upon the Commission to enforce the compliance of national legislation with Community law. Consequently, in the meantime, people can acquire red diesel in the UK and use it legally in another member state of the European Union, if transported in the normal fuel storage tank”

In plain language this means that because it is currently legal to buy red diesel in the UK for use in pleasure yachts, and will be until November 2008, if a yacht travels to another EU state with UK-purchased red diesel in its own permanently installed tanks, and can prove that diesel was purchased in the UK, that yacht is acting lawfully and does not owe any further duty to that EU state.

Without such proof of purchase or if fuel is stored outside the integral fuel tank (e.g. in jerry cans), however, the authorities in other EU states may be entitled to levy a charge on the use of red diesel within their waters.

We are not aware of any instances of yachts carrying UK-purchased red diesel in integral tanks with proof of purchase by reference to invoices and logged engine hours etc. being fined by authorities in other EU member states. If we are informed of any such instances then we will, of course, investigate and contact the relevant authorities.

We are also aware of threads of postings on various forums to the effect that the Embassy of the Kingdom of the Netherlands has issued guidance that differs from that set out above. We have been in contact with the Embassy, however, and we are assured that the quoted guidance is not Netherlands Government policy and was based on a discussion between the Embassy and UK Revenue and Customs. The RYA has been working with UK Revenue and Customs on the issue of red diesel for several years and we will now seek to ensure that the Embassy receives the correct information regarding the status of red diesel in the UK.

In the meantime, the RYA does not advise UK yachts carrying red diesel in their tanks to take extreme measures such as avoiding ports in the Netherlands but we would reiterate the contents of our guidance note on the subject.

RYA guidelines for British yachts carrying red diesel or possible red diesel dye contamination visiting other EU states until 01/11/08:

1. Keep receipts for the diesel, to prove that it was bought in the UK and ideally log the engine hours to back up these records

2. Do not carry red diesel anywhere other than in the main tanks. Make certain, if you carry spare fuel in jerry cans it does not contain traces of red diesel; the safe way of ensuring this would be to purchase separate cans for spare white diesel for taking abroad.

3. Do not purchase red diesel in a country where the purchasing of rebated fuel by leisure craft is prohibited by law. NB

o we understand that this is now the case in Belgium – although they are rumoured not to be enforcing the law until next year

o rebated fuel in Ireland is coloured with Green dye rather than red, but it is still not available to leisure craft

Should you encounter any problems and be fined in respect of having red diesel in your main tanks, you should ensure that you receive pa

Red Diesel - Red Diesel - Red Diesel

Anonymous user

27 June 2007 19:10:51

Joined: Unknown | Posts: Unknown

Response to an e-petition to 10 Downing Street to save Red Diesel for leisure boaters28 February 2005 (outdated i know)

As you will know, private pleasure craft with diesel engines are entitled to use rebated gas oil or red diesel, which is specially marked to distinguish it from diesel used as road fuel. This is diesel which bears a reduced (or rebated) rate of excise duty of 5.22 pence per litre compared with 47.10 pence per litre for diesel used on the roads. Red diesel can also be used in certain off road vehicles, such as most agricultural vehicles and machinery, vehicles employed in motorway construction, forestry, mining and quarrying, and diesel locomotives, as well as commercially and privately owned boats.

Under the relevant European agreements (currently the Energy Products Directive, which came into effect on 1 January 2004), fuel used by private pleasure craft is normally taxable at the same rate as the equivalent road fuel. However, the United Kingdom enjoys a derogation from this provision, and this allows private pleasure craft to continue to use red diesel. This derogation is due to expire on 31 December 2006, although we will have the opportunity to apply for an extension.

We have read your comments with interest. We can assure you that your views, as well as those who have signed the petition on the Motor Boats Monthly's website, will be taken into consideration, along with other relevant economic, social and environmental factors, when we take decisions on the future duty treatment of red diesel for use in pleasure craft in the run up to the expiry of the current derogation in 2006.

You may know that Officials from Customs and Excise have already met with representatives from the Royal Yacht Association and British Marine Federation about this matter. Officials will, of course, be happy to meet any other national associations or trade bodies to discuss this issue. They should call Tim Smith from HM Customs and Excise at Timothy.Smith@hmce.gsi.gov.uk if they wish to arrange such meetings.

Re: Red Diesel - Red Diesel - Red Diesel

Anonymous user

28 June 2007 19:52:06

Joined: Unknown | Posts: Unknown

thats out dated?

Red Diesel

Anonymous user

01 July 2007 16:28:06

Joined: Unknown | Posts: Unknown

Great red diesel info!