EU threat to pleasure craft fuel costs (From Bucks Free Press)

EU threat to pleasure craft fuel costs

7:09am Sunday 29th October 2006 in

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OWNERS of pleasure boats in Falmouth could suffer huge increases in fuel costs if the EU refuses to renew the UK opt-out on red diesel tax, Neil Parish, Conservative MEP for the south west, said.

Britain is allowed an exemption from higher rate duty on red diesel fuel for pleasure craft and for people who live aboard their homes and need red diesel for heating and hot water.

Failure to renew the opt-out could see red diesel prices soar from 30-40p to more than a pound per litre.

Mr Parish said: "The cost of boating in the UK is considerably higher than in other EU countries when you take into account the higher mooring fees, so the red diesel exemption for Britain acts as a balance to make boating more affordable.

"Many south west boat owners are pensioners and the increase in the cost of red diesel could force many of them to sell their boats.

"The ending of low-duty on red diesel will devastate motor boating in the south west. Boating makes a significant contribution to the region's tourism and in many areas it is one of the major employers.

"I will do all I can to keep up the fight to retain Britain's exemption," he said.