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Publication Date: 08 December 2006
The Inland Waterways Association (IWA) today expressed disappointment that the European Commission has rejected the UK Government’s application to renew the UK’s derogation on red diesel for private recreational boaters.
IWA, together with The Royal Yachting Association, The British Marine Federation and The Federation of Marine Suppliers, and supported by other waterway organisations, had campaigned for many months to retain the exemption.
Roger Squires, chairman of IWA’s Navigation Committee, commented “IWA is deeply disillusioned at the European Commission’s decision as the increase in the costs of boating will lead to a decline in participation. This would have a detrimental impact on the industry that serves the boating and water sports markets, and could give rise to concerns about safety through making the use of petrol more economic. There is also likely to be an impact on jobs and tourism, with little or no gain in duty revenue for the Government as the potential for any increase could be negated by the loss of other taxes if participation in boating and related discretionary spend reduce and marine businesses face a downturn. The decision will also result in social exclusion as doubling the cost of fuel will exclude those less able to pay.”
Diesel destined for marine use is currently chemically coloured red and the price per litre is kept at a lower level than diesel used on the roads, due to a reduced rate of duty. The Council of the European Union specifies minimum levels of duty for mineral fuels. Diesel fuel used for commercial purposes currently enjoys reduced rates, and the UK was among countries that had a derogation to extend this saving to pleasure craft.
Roger Squires added, “IWA welcomes the UK Government’s acknowledgement of the problems that will result from this decision, and that it will consult boating organisations on the implementation and transitional measures to ease the impact of the change. IWA will continue to work closely with Government, other organisations and members to ensure this process deals with the main concerns.”
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For further information please contact:
Vicky Clark, IWA Membership Services Co-ordinator Tel: 01923 711 114 ext 29
Roger Squires, IWA Navigation Committee chairman Tel: 020 7232 0987
Notes for Editors:
For nearly sixty years, The Inland Waterways Association and its thousands of members have campaigned for the conservation, use, maintenance, restoration and sensitive development of Britain's canals and river navigations.
IWA works closely with navigation authorities, other waterway bodies, a wide range of national and local authorities, voluntary, private and public sector organisations to raise funds, lobby for support and encourage public participation. The Association also supplies voluntary labour through its subsidiary Waterway Recovery Group. More than 500 miles of canals and river navigations have been re-opened to public use since the Association was founded in 1946. More than 500 miles of further derelict inland waterways are currently the subject of restoration plans. The Association organises several national events each year to promote the waterways, draw attention to areas of concern and raise funds to support the Association’s activities.
The British Marine Federation is the national trade association for the leisure marine industry. Its 1,500 member companies provide the boats, equipment, facilities and services that enable an estimated 4 million people to enjoy boating and water sports in the UK.
The Royal Yachting Association is the national governing body for all forms of recreational and competitive boating. It currently has over 100,000 personal members and approximately 1600 affiliated clubs and class associations.
The Federation of Petroleum Suppliers is the trade association for almost all of the oil distribution industry in the UK and Ireland. Its 270 member companies are responsible for all deliveries of petroleum products for commercial, industrial and domestic use.
A document entitled ‘Seeing Red’ produced by the four national bodies, explains the issues, presents arguments for the retention of the derogation, and provides details of research undertaken to quantify the situation. The document is available on IWA’s website at www.waterways.org.uk/News/CurrentCampaigns/RedDiesel.
Not only will fuel charges double but some moorings fees will be increasing by 10%, the Environment Agency’s boat registration fees will increase by 12%, and, with less maintenance on the waterways, boaters will be much worse off.
