Written question asked by Michael Jack (Conservative) on Thursday, 8 May 2003, in the House of Commons. It was due for an answer on Thursday, 22 May 2003. It was answered by John Healey (Labour) on Thursday, 22 May 2003 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, if he will publish the calculations which he used to determine that £0.2710 shall be the biodiesel duty rate. - (Holding answer 13 May 2003).

Answer: Mr. Jack: To ask the Chancellor of the Exchequer if he will publish the calculations which he used to determine that £0.2710 shall be the biodiesel duty rate. [112891] John Healey :[holding answer 13 May 2003]: The new biodiesel rate of 27.10 pence per litre was chosen to maintain the 20 pence per litre duty differential with ultra-low sulphur diesel. The Government offers lower duty rates for less environmentally-damaging fuels by offering duty differentials relative to the main road fuels. These differentials are intended primarily to reflect the relative environmental benefits of the fuels in question. In determining the size of the duty incentive for biodiesel, the Government has taken into account principally the environmental benefits of the fuel, which amount to approxiamately 55 per cent. carbon emissions savings on a lifecycle basis, as well as a range of other benefits offered by the fuel, including fuel security benefits and the potential to encourage the recycling of waste products.

Secondary information