Gillon Carruthers The Politics Show South West

Leisure boats are allowed to use cheaper red diesel

European Commissioners in Brussels will make a decision on Tuesday 4 July which could affect the future of the maritime leisure industry in the South West.

At the moment leisure boats in this country are allowed to use cheaper red diesel - which the Commission taxes at a lower rate than roadside diesel through a temporary derogation granted to the UK.

But that is due to end on 31 December 2006.

A survey by the Royal Yachting Association claims 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.

Clive Singleton operates a passenger charter boat out of Falmouth.

He recently bought a new vessel - the cost - �250,000. He concedes that some wealthy boat owners can afford an increase in prices - but says they are in the minority.

Price jump

At the moment to fill up his tank with red diesel costs around �500.

But if the derogation comes to an end that would rise to around �1200, and could quickly result in his firm going out of business:

"What we must not forget is this is going to affect the man that goes out with his family in a little 15 boat with a diesel engine.

Fishing for pleasure right up through the scale, and all the industries around it: the cafes, the support industries and everything for the marine industry.

"It is more than the price of fuel, it will send shock waves through the industry."

Treasury backing

There is heavyweight backing for the boaters in the shape of the treasury, which announced in the budget that the government would apply for an extension of the derogation.

But Simon Collis of Motor Boat Monthly magazine, which is leading the campaign to have the derogation extended, says there is no telling how the commissioners in Brussels will vote:

Simon said: "It is very hard to know on what basis they will make the decision.

"This goes in front of the 25 countries and we do not know how they might decide to vote. It is likely there will be some horse trading."

Business impact

And well aware of the impact an increase in diesel costs would have, South West MEPs such as Labour's Glyn Ford have already started lobbying the Commission:

Glyn Ford: "It is not for the European Parliament to decide but the Commission is very much influenced by the Parliament.

"They are interested in building up brownie points with the MEPs for when things are a bit tougher."

Our influence is not as great as Glyn Ford's though.

The Politics Show tried for three days to get some kind of short statement about the issue from Brussels - but to no avail.

Glyn Ford's feeling is that the derogation will be extended, but that the Commissioners will indicate it is for the last time.

So the chances are boaters will be able to relax for the moment. However it may only be a stay of execution.

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