The Treasury Minister, John Healey, confirmed today that the European Commission has rejected the UK Government's application to renew the UK's derogation on red diesel for private recreational boaters.
"This decision is naturally very disappointing. Despite the best efforts of the campaign leaders, RYA and British Marine Federation (BMF), and the efforts of the UK Government, it appears that the Commission was intent on removing the derogation at any cost and has dismissed the consequences to the UK marine industry and the private recreational boater" says Neil Northmore, RYA Government Affairs Advisor.
"Boaters could face a substantial increase in the price of marine diesel" warned Howard Pridding BMF Executive Director, "which will have a huge adverse impact on the UK marine industry. It is profoundly disappointing that the EU has not listened to the UK Government".
The RYA and BMF welcomed the Minister's acknowledgement of the problems that will flow from this decision, and has confirmed that the UK Government will consult with boating organisations to develop and implement a sensible timetable for transitional measures to alleviate the effects on the boater and the industry.
The RYA and BMF will continue to work closely with Government and their respective members to ensure that key issues of cost, availability and safety are addressed by the transitional measures.
The BMF has received a letter from HM Treasury Minister, John Healey MP which confirms that there will be no immediate change from 1 January 2007 as the Government will need to take time to implement the decision taken by the European Commission. A copy of the Minister's letter is available on the BMF site at
www.britishmarine.co.uk/docimages/1852.pdf