biofuel in the budget- what does this mean....?

Nickcf

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Section from today's budget report...
I thought we had been told that biodiesel tax is going up from 3p to 28p per litre. How does that fit with the comment below about encouraging use of off road biofuel (or are boats now not seen a s off road use...?)


7.53 Following the announcement in the 2006 Pre-Budget Report of action to encourage
the use of biofuels off-road, the Government has laid legislation to reduce the duty rate for
biofuels mixed with rebated gas oil in approved pilot projects. It expects two such projects in
the railway sector to begin shortly and will monitor the results closely. To further encourage
the off-road use of biofuels, the Government today announces that it intends to
permanently reduce the current duty rate for biofuel/rebated gas oil mixtures with the new
rate to be determined in the light of the outcome of the pilots and other factors.
 

SimonC

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I was a bit surprised by that, too, but in fairness, it doesn't actually conflict with what we've been told by the Treasury.

It looks as if an off-road rate will remain, but boaters will no longer qualify for it.

When we asked about a timescale at the time we broke the story, the Treasury told us:

"The situation is the same as for fossil fuels used in boats: We will consider options to legislate the change so as to ensure a suitable period of transition and to minimise the longer-term compliance burden."

In other words, I would expect a similar timetable to the red diesel transition, and expect to see something in 2008's Budget, or possibly in the pre-Budget report of the same year.
 

rubberduck

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Simon, red is being removed cos Europe Say's so, but they have said nothing about biofuels used in boats, or anywhere else for that matter. Are you sure you're contacts at the treasury know what the hell they are talking about, as I for one have serious doubts!
 

oldgit

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Just out of interest,it was mentioned on R4 yesterday that the quantity of crops needed in order to refine enough fuel to fill the tank of a "recreational" type motor car,could also feed a man for a year.
More input energy is also needed because the raw veggie oil needs refining several times to make it suitable for the combustion engine.
 

rubberduck

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Believe half of what you see and nothing of what you hear.
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SimonC

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I have it in writing, from the Treasury, officially, that pleasure boaters will no longer be allowed to fill up with bio at the low, 'off-road' rate, though they haven't yet confirmed when this will happen.

I wasn't expecting to see anything about it in this year's Budget and, sure enough, it wasn't mentioned.

Chris Huhne MP has asked Gordon Brown to confirm the reasoning behind the decision. When Brown (finally) replies, hopefully that will be the further clarification you need.

Or maybe they'll change their mind /forums/images/graemlins/grin.gif
 

Garryt

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Once this growing and refining process gets fully "underway" technology will provide the means of growing basic crops in a more concentrated manner and improve the refining process to squeeze the maximum output for the minimal input!

Demand will cause this processing to gain in momentum and it's an ideal source of revenue for 3rd world countries to produce and export their own fuel! (IMHO)
 

rubberduck

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My MP has also written to GB personally, so I will let everyone know the outcome when I get it. It does all sound rather confused, however. I don't honestly think that most people in HMRC even know what biodiesel is!
 

rubberduck

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I totally agree. Anyone see comic relief the other night. Biofuel could be grown in Africa, I believe. Would that not make some sense, with the backing of some fuel suppliers it could provide a long term answer for them.
 

Garryt

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In Addition, some of the massive revenues generated by the international oil companies could be ploughed into 3rd world investments, so when they forced to reduce their reliance on fossil fuels, the transition will be easier.

There could also be tax incentives to provide these investments, so it's win win situation and we may very well get cheaper fuel for our boats! /forums/images/graemlins/smile.gif
 
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