Bye Bye Red..........

[duncan]

 

EU have just rejected the UK application for a further extension to derogation so now the real fun starts.............will the UK simply retain red but increase the duty to bring it into line with EU minimum levels (the sensible minimum admin option with comercials reclaiming the increased tax etc) or look to create a whole new raft of infrastructure, paperwork and stress with a requirement to shift to white for non comercial at current road prices - the tax raised going towards the cost of running it (unlikely to pay for it all according to most studies!).

 

Ah well it's nearly Christmas..................

 

Commission rejected the UK's application for a renewal to the red diesel derogation.

 

The decision was announced in Parliament this morning.

 

In the communication, however, the EC states that "the applicant Member States may adopt measures aimed at alleviating or mitigating problems of transition to the regime of standard taxation."

 

The full text of the EC's conclusion is copied below...

 

"All in all the Commission considers that Belgium, the United Kingdom and Malta have not presented any specific policy considerations that would justify their need to further derogate from the legislation enacted in the EU on unanimity at two occasions already and that would justify the existence of a fiscal measure that clearly contradicts several Community policies.

 

"The arguments put forward by the Member States concerned rather represent consequences of the existence of the derogation itself for a long period of time.

The Member States have had enough time to adjust to the new situation taking into account that this and similar derogations have been under discussion in the Community at least since 1996 and the Commission repeatedly insisted on the necessity to phase them out. This is equally valid for Malta in which case the time limit for the derogation under Article 18a of the Energy Tax Directive was fixed so as to coincide with the time limit fixed for similar derogations available at that time for some of the fifteen existing Member States.

 

"Should the expiry of the derogation cause difficulties in very specific or particular circumstances and provided that they respect Community law in all respects, the applicant Member States may adopt measures aimed at alleviating or mitigating problems of transition to the regime of standard taxation. The Commission therefore concludes that the conditions set out in Article 19 are not fulfilled. On this basis, the Commission does not propose the authorisations requested."

 

Edited December 7, 2006 by duncan

[great white]

We will have to keep an eye on that

 

If I get any news at work I will post it

 

Good time to change from 60hp to 260hp

 

 

Anyone got a pair of long oars

 

Charlie

[great white]

Just received by email from the BMF

Charlie

 

 

Please find following a statement from the British Marine Federation and RYA on Red Diesel following confirmation today from the Treasury Minister, John Healey that the European Commission has rejected the UK Government

[Wedger]

 

[duncan]

meeting Monday I believe Charlie..........

[gaffa]

Guess now's the time to stock up on waste chippy oil

 

I see a business opportunity looming.

 

Who's up for investing in a street full of Fish and Chip shops alonside Poole Harbour

 

In all seriousness I reckon it will have a huge impact especially on the Marinas.

There will be a lot of boats put up for sale and very few buyers.

 

Pete

[duncan]

all depends on how UK Gov proceed now Pete........

 

parity with European marine fuel has a huge logic and could be implemented effectively using the existing infrastructure

 

should know more after Monday's meeting

 

you can't ignore the price having more than doubled already in the last 2 years - it could probably stand an additional 15ppl duty or so , especially if the oil prices fell a bit!, but I agree if it goes to road fuel prices it will cause mahem

Edited December 8, 2006 by duncan

[Mike Fox]

Wonder what the full implications are?

 

Commercial fishermen likely to get tax relief on diesel, else going to sea becomes less commercially viable. If not - impacts to fish prices on the high street, small commercial boats squeezed out, less pressure on inshore stocks?

 

Likely increase in the cost of charter trips.

 

Motor boat owners already feeling the financial "pinch" drop out of boating.

 

More boats up for sale (previously mentioned), and fewer new buyers.

 

Second-hand price of boats fall (good news for buyers, bad news for sellers?).

 

Brokers drop their percentage margin to attract more sellers (eh Tom!).

 

People gravitate towards smaller boats where berthing/running costs lower.

 

Running cost differential between diesel and petrol shrinks, making the power/weight ratio of petrol engines more attractive.

 

People who can afford it can get bigger/faster/more powerful boat more cheaply.

 

Less pressure on pontoon berths - gaps appear. Deals to be had - prices to start falling (about time too)?

 

Trailable boats having a lower annual running cost become relatively more popular.

 

Increased crowding at already busy slipways at peak times.

 

Membership of PBSBAC increases, as Sunseeker owners "upgrade" to Orkneys, etc.

 

Oh, and more anglers start being spotted on the back of sailing boats!

 

Anyone got any others?

 

Mike

 

 

[Newboy]

As a result of charter prices going up, men are staying home more. Thus, keeping the missus happy and divorce rate goes down....... also, the birth rate goes up ( ) and the looming pension crisis is adverted because there will be more working population.

[duncan]

Wonder what the full implications are?

 

impossibly to predict without a definition of 'it'

 

but in any event you forgot the butterfly

[Fugazi]

As the number of trailable boats increases, costs of launching will soar (its all about supply and demand).

 

More boats to trail therefore increase road tax on 4 x 4's

 

Introduce pollution tax on all recreational craft

 

Let

[Maverick Martin]

It

[jack]

If red diesel rises in price,Andy and I may have to restrict our fishing trips to Holes Bay [launching from Cobbs.].This could mean fewer fish coming to our rods.

.............................................What the hell am I on about.!! silly old Sod !

jack

[Coddy]

If red diesel rises in price,Andy and I may have to restrict our fishing trips to Holes Bay [launching from Cobbs.].This could mean fewer fish coming to our rods.

 

silly old Sod !

jack

Hi Jack

 

You will soon become "the" expert on Holes Bay flounder then.

On a spring tide it might be good fun sitting at an angle on the mud

 

Better get out next week-end for the Flounder bash comp then!

 

Coddy

[great white]

jUST RECEIVED THIS BY EMAIL

 

BMF HAS EARLY MEETING WITH HM REVENUE & CUSTOMS ON RED DIESEL

The BMF and RYA met with senior Customs officials on Monday 11 December to discuss the announcement made on Thursday 7 December that the EC would not renew the Red Diesel derogation. The key points arising out of the meeting were:-

 

The decision from Europe is final and there is no appeals process.

 

The UK Government now has to implement that decision into national law in a timescale that is acceptable to the Commission.

 

Our officials (and the Minister) seem genuinely disappointed that they have not been able to retain the derogation.

 

The UK case to the Commission was heavily based on the economic impact on the industry. Our Government will now be taking their time to get implementation right.

 

The process to implement the legislation will require an announcement in a budget statement in Parliament followed by a Finance Act and possible secondary legislation. Prior to that there will need to be consultation with all interested parties.

 

When the law is finally enacted in the UK companies will not be able to sell red diesel to leisure users (the benefit to commercially operated craft will remain). This will require companies to put in the infrastructure to stock and supply ultra low sulphur diesel (ULSD) - the same diesel sold on the high street.

 

Boat users will be able to continue to use lower duty red diesel until the law is implemented.

 

The BMF has received a large amount of comments and questions from members, boat users and the media. All of these points will be raised as the Federation continues to work with Government as their thinking on implementation develops over the coming months.

 

Charlie

[great white]

This one has just arrived by email

 

and will interest a few Members

 

especially those changing to boats with powerful diesels

 

RED DIESEL UPDATE

 

The BMF has received a letter from HM Treasury Minister, John Healey MP which confirms that there will be no immediate change from 1 January 2007 as the Government will need to take time to implement the decision taken by the European Commission. A copy of the Minister's letter is attached together with a statement issued by the BMF.

 

Some members have had confusing messages from their fuel suppliers suggesting that they will not be able to supply red diesel at a lower rate of duty from 1 January. That is not the case. The BMF has contacted the Federation of Petroleum Suppliers who have put out a clear message to their members and on their website www.fpsonline.co.uk

 

THERE WILL BE NO CHANGE TO THE CURRENT SITUATION ON 1 JANUARY 2007 AND BOATERS WILL CONTINUE TO BE ABLE TO USE LOWER RATE RED DIESEL UNTIL GOVERNMENT IMPLEMENTS THE COMMISSIONS DECISION IN THE UK.

 

 

[jack]

I dont understand why the U.K. government doesn't take the same stance on this ruling as do the French when they dont like something.Just bloody ignore it !! jack

[duncan]

Healey's letter is here http://www.mbmclub.com/mbm/pdf/bmf.pdf

 

sadely I don't put the same interpretation on it as others have been - we will just have to wait and see what happens next and when next is!

 

however I do agree that next hasn't happened yet and that fuel should be available as before