Diesel tax blow to boat owners

8:19am Friday 8th December 2006

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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."