Correct news on the red diesel issue taken from the RYA web site

Published: 10/08/2006

Following the European Commission's response in June which indicated that
the Commission is not in favour of extending the current derogation for fuel
used in recreational craft for navigation, the RYA has now met with
officials from HM Revenue and Customs (HMRC) to discuss the latest position
on the red diesel derogation.

The RYA is pleased to note that despite the Commission's discouraging
initial response, UK Ministers continue to believe that there is a strong
enough case to support the renewal of this derogation. We also believe that
Governments in other Member States with similar derogations will similarly
be pressing for renewal. The RYA will continue to work with Government
officials to ensure the UK's arguments are as strong as is possible. We
understand the Commission has set a deadline in mid October for receipt of
all applications for renewal so time is of the essence, but it is not an
unrealistic target.

A spokesman for HMRC, states:

"As required under the Energy Products Directive, the Commission issued a
Communication on 30 June stating its position on the derogations, and noting
that Member States may apply under the normal procedures for renewal of
derogations. As announced at the Budget, the UK will be submitting an
application for renewal of the derogation enabling pleasure boats to use red
diesel. This application will be informed by the case that the government
has set out in the partial RIA and is continuing to build with the
cooperation of the boating industry.

Ultimately, approval of the application will require the unanimous agreement
of the EU Council of Ministers to a proposal from the European Commission.
However, we believe that the RIA makes a convincing case for renewal and
will carry on working with boating organisations and other Member States
over the coming months to ensure that the application presents the strongest
possible arguments for retaining the derogation."

The RYA is also aware that there has been some questioning by Member States
over handling procedures by the Commission for renewal of derogations. We
expect that this dispute will soon be resolved, but the lateness of the
action by the Commission may in itself be a possible ground for extension of
the derogation.

It is possible that the Commission may grant a temporary extension for a
short period to allow the Commission time to consider the applications from
Member States. The RYA believes that a temporary extension may well lead to
further uncertainty and is best avoided, but we should prepare ourselves for
such a possibility.

If RYA Members or Clubs want to add their further support to this campaign
by bringing pressure to bear on the Commission then people should urge their
MEPs to write to the Commission, in particular to:

Tom Carroll, Head of Unit,
Excise duties and transport,
Taxation and Customs Union D-G,
European Commission Rue Montoyer 59,
Brussels, BE-1000, Tel +32-2-295.58.42,

E-mail ; [EMAIL PROTECTED]

The more pressure the Commission receives the more likely it is that the
Commission will acknowledge the strength of feeling on this matter, and
recognise the impact the loss of the derogation will have on UK boaters.

The RYA publication 'Seeing Red' can be used to brief MEPs, along with the
Government's Partial Regulatory Impact Assessment, which can be found by
following the related links above.

-- 
Regards
Michael Clarke
Email: [EMAIL PROTECTED]
Web: http://users.skynet.be/sky34301/ 





 
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