Application is in then...

SimonC

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Exactly.

With the application now in, now really is the time for anyone who hasn't already to contact their MEPs to highlight the importance of this issue.

There are full details of the easiest way to contact your MEP, and facts and figures you can use to support your case here

I know there is a certain amount of red diesel fatigue on this forum at the moment, and even a little bit of a backlash at times, but the facts remain that people are going to be forced out of the hobby they love, people are going to lose jobs in marine-supported businesses, and the net effect will be a loss to this government's coffers.

Even if your message to your MEP is just two lines long, the fact that you've expressed the importance of the issue is what matters. No politician - in Europe or otherwise - can properly represent you unless they know what's on your mind.

Simon
 

SimonC

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The decision will be proposed by the Commission, and ratified by the Council of Ministers.

Even so, it's easier and, I think, more effective, to lobby via MEPs. Although they won't have a vote on the issue, they do have direct contact with the commissioners involved.

Most MEPs who have supported the campaign have immediately written to the commissioner responsible for this decision, and I think that's a good start.
 

dragoon

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I did as suggested. Here was my little piece - I know not everyone will agree with the petrol versus diesel argument, but I consider it valid.

Cheers,
Paul


Dear MEP,
I don't know if you are aware, but the future of the derogation of diesel for pleasure boating purposes is currently in question.

This essentially allows pleasure boaters to take advantage of lower tax diesel (often called 'red diesel') for boating purposes. The loss of this derogation is likely to cause significant decline in the local boating industry and will have knock-on effects in terms of jobs losses, all with a final result of reduced money to the government (not vice-versa).

Additionally come into play safety and green issues since the reduced taxation on diesel has led a predominately diesel based motor boating community in the UK. This is a good thing - diesel is very safe for boating use (highly reliable and non explosive, unlike the petrol counterpart). Also the use of diesel engines are better for the environment than petrol equivalents. However, diesel engines cost a lot more to buy than petrol, and the differentiation between the 2 fuels will be lost with the derogation going, and so it's likely that there will be much more petrol powered craft than diesel on the water.

An application has been submitted to Brussels for an extention of the derogation, but it's unlikely to be approved without support of MEPS like yourself. If you would like to see more details and supporting facts and figures, please consult the following http://www.ybw.com/mbm/redalert/blog/20060418093552redalert_blog.html

I hope the boating community can count on your support.

Yours sincerely,
 

dragoon

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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
 

dragoon

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I have another reply;

Thank you for your email on the subject of the UK's derogation on marine
diesel which was passed to me from the Office of Richard Ashworth MEP.

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 the 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
 

Gludy

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I have my first reply
----------------------------------
Dear Mr Burgess,

Thank you for your e-mail regarding the issue of the European Commission
deciding not to extend the derogation for fuel used in recreational
crafts for navigation. For so many people in Wales and in Europe as a
whole, the derogation on red diesel has been essential in allowing them
to have access to leisure boating that may otherwise have been too
expensive. It is with deep regret that there is now a possibility that
this opportunity may be taken away.

According to the BBC a man who is running a passenger charter business
faces a rise of over 50% in costs if derogation comes to an end. Further
as I am sure you are aware the Royal Yachting Association claims that
"54% of recreational boat owners said they would or may have to give up
boating altogether if there's a dramatic increase in the price of red
diesel". These statistics show that the effects that this move could
have upon people and their pursuits. This proposal will leave many
people unable to finance their favourite pastime.

Whilst the decision will be taken by the European Commission; I assure
you that my colleagues and I are putting pressure upon the Commission to
extend derogation. If you have any further questions on this or any
other subject then do not hesitate to contact me.

Yours sincerely,

Jonathan Evans MEP (Wales)
Chairman of the Delegation for Relations with the U.S.
--------------------------------------------------

I cannot see how it would effect the charter business mentioned as this is not under threat.
 

SimonC

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Interesting reply.

I seem to remember that from some of the information we have seen, the charter business in question claimed that they would need to hike prices - for the first year at least - in order to cover the hit to their cash flow caused by being forced to claim back tax later in the year.

The proprietor was unsure as to whether take-up at these prices would be sufficient for the business to remain viable.
 
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