Red diesel: self-regulation is the best way forward, say BMF

BMF want self-regulation to ease industry burden

The British Marine Federation (BMF) have put in their official response to the Government’s consultation on the future of waterside diesel.

They want boaters to have to work out whatever duty they should pay on fuel themselves, to ease the burden on the industry of the massive change.

Leisure boaters lose permission to use low-duty diesel in November next year, but the Treasury is still unsure how to implement the change, which was forced by the European Commission.

The BMF and Royal Yachting Association have been busy lobbying behind closed doors to ensure the industry’s viewpoint is understood and the implications of the expected twofold price hike are as small as possible.

However the BMF’s ideal scenario would impose a heavy responsibility on the boatowner.

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In a statement released this afternoon, the BMF say their preferred option is self regulation: “This would have the minimum impact on the industry as it would permit fuel suppliers to continue to retail fuel at the rebated rate to recreational boaters, requiring the individual to declare the additional duty due periodically.

“This is the industry’s preferred option as it limits the cost, bureaucratic and compliance burden on marine companies who supply fuel.”

They say other options, such as the fuel supplier collecting the duty or switching to unmarked fully duty paid ULSD, would force “difficulties” and “problems” on the industry.

HMRC estimates that the removal of the red diesel derogation would lead to a revenue gain for the Treasury of between £10 million to £15 million a year.

“The BMF has called upon the Government to set aside some of the additional money it expects to gain to help offset the difficulties industry will face implementing any changes. The BMF will continue to work with Government to achieve the best possible outcomes for all parties involved.”

See the January issue of Motor Boat & Yachting for a full response to the news. 


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