Written question asked by Lord Berkeley (Labour), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Wednesday, 7 March 2012.

Energy: Red Diesel

Question: To ask Her Majesty's Government, with reference to the proposed changes to the regulations for using red diesel in pleasure craft due to come into force on 1 April 2012, (1) which organisations were consultedabout this change, and when; (2) how many suppliers of red diesel to marine craft have committed to adding a supply of white diesel by 1 April 2012 for those customers who wish to travel to other European Union member states; (3) whether Her Majesty's Revenue and Customs have informed representatives of marine craft owners in the United Kingdom and other European Union member states that they will no longer be allowed to use red diesel in their craft for propulsion outside United Kingdom waters; and (4) whether users of pleasure craft intending to travel between the United Kingdom and another European Union member states will be able to do so legally where there are no suppliers of white diesel at their departure points in the United Kingdom, and if so, how.

Answer: In order to halt infringement proceedings against the UK practice of allowing the use of red diesel to propel private pleasure craft with full duty paid, Her Majesty's Revenue and Customs (HMRC) reached an agreement with the European Commission to limit the use of red diesel to UK waters and require purchasers to sign a declaration acknowledging that, if used in the territorial waters of another member state, it would be subject to the prohibitions and restrictions of that member state. We maintain that the UK procedures are in accordance with EU legislation. However, without this agreement, there is a risk of an adverse ruling that would lead to the enforced use of white diesel. HMRC held informal consultations over a period of several months in 2011-12 with a number of organisations representing pleasure craft users and fuel suppliers. HMRC does not have information on the number of suppliers who intend to supply white diesel. That is a commercial decision for suppliers. HMRC has informed the representatives of marine craft owners in the UK that the use of red diesel with full duty paid to propel pleasure craft is a UK procedure permitted within UK waters. If red diesel is used outside UK waters, users must be aware that they will continue to be subject to the national legislation, including any restrictions and prohibitions, of the member state in whose territorial waters it is being used.

Secondary information

Type: Written question
Reference: 15915; 735 c421-2WA
Session: 2010-12
Related items: Energy: Red and White Diesel
Monday, 26 March 2012
Written questions
House of Lords; Energy: Red Diesel
Monday, 26 March 2012
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House of Lords; Energy: White Diesel
Tuesday, 27 March 2012
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House of Lords
Subjects: Boats Excise duties Red diesel
Link: View this Written question on www.publications.parliament.uk