Red Diesel - response from Minister

Copy of my mail sent ....

Date: Sat, 17 Apr 2004 21:07:48 +0300
To: david.jamieson@dft.gsi.gov.uk
From: Solent-life <nluther@solent-life.co.uk>
Subject: "Red Diesel" Concession for Marine Use

Excerpt of your Communication on the net ..... :This excerpt has been made available on the net in our discussions reference the Govt's wish to remove Red Diesel Concession from Marine Users.


"A comparison between petrol and diesel in marine use inevitably revolves around power/weight ratios of engines, and the safety issues of fuel stored onboard and unintentional ignition. Petrol is used most commonly for high speed applications. The use of petrol outboards for high speed boating and the associated sports of water skiing, paragliding, and petrol inboard motors for jet ski are particularly well known. Where lower power/weight ratios are acceptable and where greater reliability is necessary, diesel engines are preferred, and indeed are the only practical option.
Particular requirements in the EU Directive on Recreational Craft acknowledge difficulties in the stowage of fuels having a flash point below 55 deg C, requiring that tanks are not part of the hull, are insulated from the engine compartment, and are protected from all other sources of ignition. As you will appreciate, this places petrol at a disadvantage, limiting its use significantly. Petrol engines are also inherently ill-equipped for anything more than use in relatively calm conditions due to the limitation of the ignition system.

Despite the removal of the "Red" status of diesel, the relative benefits of diesel as a marine fuel are considered to outweigh the increase in basic cost. Diesel remains cheaper than petrol; is less volatile; can be stored in integral hull tanks; and the vapour, although pungent, is much less dangerous than that of petrol. Diesel is also relatively more environmentally friendly than petrol."


Dear Sir,

The above excerpt illustrates the complete non-answer to the original question as to reasons for removal of Red Diesel Tax concession for Marine Use.
Fact : Petrol Engines are used in many situations on marine craft - rough and calm seas, without problems. It is the overall running costs of Petrol engines makes them unattractive to a large number of marine users.
Fact : Petrol engines are not reserved only for high speed applications, in fact you will find many low speed applications especially on inland waters.

The removal of the Low Tax concession on diesel for marine use cannot be justified in any way that can be seen - other than that of perceived financial gain to the treasury. If the situation was to be set that Commercial Users still received the concession and leisure users were to lose it - how can it be administered ? At present most fuel is at at same points for both types of user and I am sure that the Proprietors will be extremely reluctant to install a second system to dispense non-red diesel alongside existing. How can he distinguish between the two classes when there are commercial 'Yachts' that surely would be eligible under possible commercial reasoning.

So far the Yachting industry has declined seriously over the years and benefit has passed overseas. This action will add another 'nail' in the coffin of UK Boating Industry ..... please note that UK Diesel manufacturers are still regarded as Quality and suppliers to well known company's - re-branded.

The strange part is - a lot of your comment makes sense - but is totally out of context with the subject. Yes Diesel is more safe than Petrol. But I would argue about Diesel being more environmentally friendly - it is more persistent than Petrol which vaporizes away easily.

Finally - at what level will the tax be raised to - if it happens ? a) Marine users are not using the roads, are not causing environmental damage to roadsides etc. that require levels of revenue to repair / maintain. Therefore Road Diesel levels of duty are unjustifiable. b) Marine User already pay Harbour Dues, Mooring Fees, Crown Estate Levies etc. etc. which go to the upkeep and maintenance of the marine surroundings - therefore why pay again.

A sensible and to the point reply would be appreciated, instead of skirting the issue and commenting on irrelevant issues.

(Please note a copy of this communication will be placed on the same forum the above excerpt was received from.)

Yours
Nigel C. Luther


<hr width=100% size=1>Nigel ... and of course Yahoo groups :
http://groups.yahoo.com/group/gps-navigator/
 
Re: Copy of my mail sent ....

“The removal of the Low Tax concession on diesel for marine use cannot be justified in any way that can be seen - other than that of perceived financial gain to the treasury”

I would have to disagree with you on that one Nigel.

Why should farmers and fishermen be a special case compared with road hauliers ? Why should leisure boatowners be a special case compared with leisure car drivers ?

We all keep asking for a fairer more equal society and when it comes , when it affects OUR pockets, we find reasons to start moaning about it.

IT’s the same with teak. When it’s OUR vanity ( my Vanity 34 is just not a Vanity 34 without a teak deck old boy. It just isn’t.) . Or much more likely, the future selling PRICE without a teak deck. Am I to blame as much as anybody else ? Yes of course I am.

There SHOULD be a wind tax though. Based on sail area ( but not on spinnaker's in light wind areas) but more importantly on the wind thats produced on forums. Plus a pontificating tax for pontificating over a certain amount of pontificating.



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Re: Copy of my mail sent ....

cause fishermen dont wear twin grooves in the inside lane of motorways, cause yotties dont require special surfaces to move from one place to another.

<We all keep asking for a fairer more equal society>
quite what that has to do with the price of red diesel i dont know but i can see that the shower that are in power would go along with that theory. drag the common demoninator down so that nobody can shine. well human nature aint like that.
stu

<hr width=100% size=1><A target="_blank" HREF=http://www.beneteau-owners-association.org.uk>http://www.beneteau-owners-association.org.uk</A>
 
Re: Copy of my mail sent ....

I agree with you Alec. Charging Tax for fuel at different rates depending on what you do with it seems a bizare concept. If the stated purpose is to discourage people from burning excessive amounts of fuel to help protect the environment then surely it makes no difference what burns the fuel. If putting tax on fuel encourages people to use their engines less and rediscover the lost art of actually sailing into rivers and the like then this can only be a good thing! Just think of the general increase of semanship that would result!
But let's not forget that we are talking about marine diesels. They use next to no fuel anyway.

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Re: Copy of my mail sent ....

Ah ! But lorries do pay rather a lot of road tax. Plus they are carrying our own stuff about. We just pay the fishermen to go fishing to further deplete the stocks that will probably never ever come back again like the Grand Banks has shown.

Fishermen have suffered through bad politics, but I would say that the scales favour them as destroying their own livelihood themselves. Things change. Most of us have been made redundant many times now for various reasons but don’t keep moaning about it . We just get on with it. And they get in our way. Which reminds me that racer's should be taxed out of existance.

I see by you’re spec that you like beer. So do I ! Why should Adnam’s draw the same tax as that poncey Nordic muck ? It’s just not FAIR !

Are we not all Adam's children ?

Anyway, six foot of earth makes us all equal.

Though I'am hoping to go with me hand on the tiller rathet than me head on a pillow !

Without the engine on of course.




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Confused by apparent about-face ....

Having read the various posts / threads on this subject and especially the excerpt from the govt guy ..... I replied whith my thoughts. I felt that they were not too far off line with others views or at least supported not all, but a fair majority ..... from these posts it seems that you are now advocating tax and be damned.
If you read the ost carefully I made - it actually questions his statement and its irrelevance, along with how to actually implement it. At present I have not been given any real good reason to accept increase of price on diesel ... similarly to the hidden tax's that have come in over a period with this shower in Govt.

So OK - I may not be in majority then ..... the stand I make is alone and I may be the only one that wants to keep cheap marine diesel ..... so be it.

On to the subject of sail instead engine ..... I regularly use sail instead of engine in rivers etc. In fact if you care to visit Tallinn - you wil see me berth and unberth from bows on meddy style marina berth UNDER SAIL ..... engine sitting there not even started ..... I was observed leaving Folly Inn to the surprise of Sunsail etc. etc. under sail ...... scandalising main etc. to allow Chain ferry to pass ........ so does that mean I must pay more ?
I pay enough already .... tax's in 3 country's (incl. UK) - so for me enough.


<hr width=100% size=1>Nigel ... and of course Yahoo groups :
http://groups.yahoo.com/group/gps-navigator/
 
Re: Confused by apparent about-face ....

Well I thought it was a good post, and agreed with you.
Would the poster's who feel farmer's and fishermen help pay the road haulage industry costs, would they like to help pay our water rates. Due to Cornwall having a very large coat line and beaches, we have to pay to get them to EU standards, we don't us them, it's the visitors that use them, but don't pay.
If the marine industry is paying fuel tax like road haulage, are the government going to pay for dredging, light dues, and all the other items that road users get as part of there dues??


Brian

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Re: Confused by apparent about-face ....

Of course the reality is that tax on road fuel has reached ridiculous levels and that's the reason for the huge price difference between road and marine diesel.

I'm not advocating a tax on marine diesel, I don't particulary want to pay more for fuel. I was just pointing out that if the powers that be decide to look at taxing marine fuel we don't have much of a defence.



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Re: So please tell me - Was I wrong ?

Were you wrong in doing or thinking what ?
I agree with you that we should fight the tax increase.
As far as I'm concerned, if the Govt. caves in to Brussels, by not reapplying for derogation, then there is no justification for the price to rise to road fuel levels.
I think that that is the only real logical argument that we have. Unfortunately people going off on tangents, for example, about the effect on the boating industry, only muddies the water and gives the govt. something to find flaws in.

I'm pretty certain that everyone here would be against paying garage prices because there is absolutely no justification for this. In fact we should argue that marine petrol should be reduced in price for the same reason.

Keep up the good work.

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Re: So please tell me - Was I wrong ?

There is a dimension to this which is going right by your street without you realising it.

Road charging is going to be introduced in UK <A target="_blank" HREF=http://www.euractiv.com/cgi-bin/cgint.exe/714697-570?204&OIDN=1505994&-tt=tp> see this link</A> and (what is not mentioned in the ref or any you will find - fuel for commercial vehicles will be at a reduced taxation level). Thus making a more level playing field for our transport industry vs the furriners. As I understand it, UK gov is in favour of this, but there is a big row going on as to how the income may be used. The directive is framed such that the income can only be used to provide and maintain the network, but UK do not want this unusual hypothecation which binds them with golden handcuffs.

I don't think it will have any effect on our situation, but I thought it might be interesting to those involving commercial interests in these threads.

<hr width=100% size=1>Black Sugar - the sweetest of all
 
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