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Diesel tax blow to boat owners

HUNDREDS of Hampshire pleasure boat owners face increased costs after European Union chiefs demanded the British government raise the tax on the fuel they use.

Duty on red diesel is likely to rise from the current 7.69p per litre to 48.35p per litre from March or April.

A survey by the Hamble-based Royal Yachting Association claims 54 per cent of recreational boat owners said they may have to give up boating altogether if there was a dramatic increase in the price of red diesel.

The tax change announcement was made by financial secretary John Healey who told the House of Commons that the European Commis-sion had rejected a UK application that would have seen pleasure boat owners continue to be able to purchase cheaper red diesel.

The news was condemned by boat users is areas where owning a boat is part of the lifestyle of many.

Up until now, the UK has been able to supply red diesel to private boat owners under a derogation from EU rules. This derogation is now not being extended.

Mr Healey said that he was well aware that the derogation permitting the use of red diesel in Britain is highly valued by private boat owners and users.

He added: "We put the strongest possible case to the Commission."

We prepared that case in close cooperation and with contributions from many of the organisations affected. We could have done little more to press the case."I spoke personally with the Commissioner and have written personally to the Commission on this issue. There is no further stage in this process now."

8:19am Friday 8th December 2006

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Posted by: B Edwards on 12:54pm Fri 8 Dec 06
I expect this has been forced along by Mr Brown and this useless government. He wants the tax and they hate, the so called rich, the middle class.
Posted by: David on 5:24pm Fri 8 Dec 06
B Edwards wrote:
I expect this has been forced along by Mr Brown and this useless government. He wants the tax and they hate, the so called rich, the middle class.
I expect this has been forced along by Mr Brown and this useless government. He wants the tax and they hate, the so called rich, the middle class.

What an utterly inane remark. The government did not even have to seek the renewal. My understanding, and this can be verified on the RYA web site, is that they consulted widely and were persuaded by the RYA case.
Posted by: Ian on 1:07pm Sat 9 Dec 06
Hooray! About time.

Now we just need to get farmers and the airlines to pay their fair share of fuel duty. All fuel pollutes so it should all be taxed equally, instead of clobbering the motorist all the time.
Posted by: George Shilton on 9:13am Mon 11 Dec 06
I am retired and live on my narrow boat,my heating is by diesel stove.This tax will virtually double my heating costs.This tax will cause considerable distress to those people on low incmes that live on their boats!
I doubt the powers that be even considered that people live on their boats and rely on diesel to heat them.
Posted by: andrew on 2:33pm Mon 11 Dec 06
Yet another example of how the government has no control over British affairs.
Posted by: Crazy Horse on 5:08pm Mon 11 Dec 06
Why cant we be like the French and put two fingers at the EU and carry on as usual.
Posted by: mike gregory on 4:31pm Thu 14 Dec 06
our boat has diesel heating and gen set 5kva on own tank 400ltr i have been told we can run on red diesel still and when outside the 12 miles the boat can also use red diesel is this true
Posted by: mike gregory on 4:39pm Thu 14 Dec 06
is boat heating fule in this our can we still use red
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