Yachting and Boating World forums: Application is in then...

Here's my first bit of news from one of the MEPs I lobbied;

Thank you for your email on the subject of the UK's derogation on marine
diesel.

As you are aware, the UK was originally granted a number of exemptions from
Council Directive of 27 October 2003 on restructuring the Community
framework for the taxation of energy products and electricity (2003/96/EC).
In particular, Article 18, paragraph 1 which authorises Member states to
continue to apply reductions in the levels of taxation or exemptions as set
out in Annex II. For the United Kingdom, the list in Annex II includes "a
reduction in the rate of excise duty on diesel to encourage the use of more
environmentally friendly fuels," as well as for "navigation in private
pleasure craft. European legislation on this issue is very clear: the UK
government has the discretion to decide its excise duty policy in these two
areas (amongst others listed in Annex II).

Aware of the disastrous impact that this directive could have on the UK
private boating and marine industry, Conservatives in the European
Parliament have continually opposed any move to get rid of red diesel in
Europe. Indeed, when I was first made aware of the situation I wrote
immediately to John Healey MP, at the time the Minister responsible for how
the UK should fight to retain this derogation, in order to express my
support for its retention.

The UK government did submit the request for the extension of the derogation
and received the Commission's response in June. Although the Commission is
not in favour of extending the derogation UK Ministers maintain the belief
that there is a strong enough case to support its renewal. The RYA (Royal
Yachting Association) is continuing in its co-operation with the government
to work on putting forward as strong as possible an argument in support of
this.

However, ultimately the decision to grant the derogation depends upon
unanimous agreement from the Council of Ministers to an eventual proposal
from the Commission, this is without doubt a lengthy procedure and it is
quite possible that in the meantime the Commission may grant temporary
extension to the derogation, although this may only add to the confusion.

I am liaising directly with the relevant unit in the Commission in order to
secure that a strong proposal is put forward to the Council and will do all
I can to support the extension of this derogation.

Yours sincerely

DANIEL HANNAN MEP