I move Financial Resolution No. 4:
(1) THAT in this Resolution—
"the Order of 1975" means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975);
"the Order of 1981" means the Imposition of Duties (No. 256) (Excise Duty on Hydrocarbon Oils) Order, 1981 (S.I. No. 404 of 1981);
"the Order of 1983" means the Imposition of Duties (No. 265) (Excise Duty on Hydrocarbon Oils) Order, 1983 (S.I. No. 126 of 1983);
"the Regulations of 1992" means the European Communities (Customs and Excise) Regulations, 1992, (S.I. No. 394 of 1992).
(2) THAT subject to the provisions of the Order of 1983 the amount of the rebate allowed under Paragraph 12 (3) of the Order of 1975 shall, in respect of fuel oil within the meaning of Paragraph 3 of the Order of 1981 which is imported or delivered from the premises of a refiner of hydrocarbon oil or from a tax warehouse on or after the 25th day of February, 1993, and in lieu of the rates specified in section 70 (10) of the Finance Act, 1980 (No. 14 of 1980) and in section 73 (8) of the Finance Act, 1984 (No. 9 of 1984), be the amount of duty chargeable less an amount calculated at the rate of £9.75 per 1,000 litres.
(3) THAT, in respect of hydrocarbon oil to which the provisions of Paragraph 24 (2) (a) of the Regulations of 1992 refer, the amount of the rebate allowed under Paragraph 24 (2) (b) of the said Regulations shall, on or after the 25th day of February, 1993, be the amount of duty chargeable less an amount calculated at the rate of £9.75 per 1,000 litres.
(4) THAT the duty of excise on gaseous hydrocarbons in liquid form imposed by section 41 (1) of the Finance Act, 1976 (No. 16 of 1976), shall be charged, levied and paid, as on and from the 1st day of March, 1993, at the rate of £56.75 per 1,000 litres in lieu of the rate specified in section 74 (1) of the Finance Act, 1991 (No. 13 of 1991).
(5) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
This resolution provides for an excise duty increase of 1p on a gallon of industrial fuel oil used by industry, an excise duty reduction of 2.5p on a gallon of industrial fuel oil used for the generation of electricity for sale and converts the unit of charge from the hectolitre to a rate expressed in terms of a thousand litres, with effect from midnight tonight. It also provides for an excise duty reduction of 5.5p a gallon on auto LPG and converts the unit of charge from the gallon to a rate expressed in terms of a thousand litres. This will take effect from 1 March.
The purpose of this resolution is to align the rate of excise duty on industrial fuel oil, other than fuel oil used in the manufacture of alumina, with the minimum rates set for the product in the relevant EC directive. This involves increasing the present rate by 1p per gallon in the case of fuel oil used by industry and reducing the rate by 2.5 per gallon on such oil used by the ESB to generate electricity, reducing the excise duty on auto LPG by 5.5p a gallon and converting the unit of charge from the hectolitre in the case of fuel oil and the gallon in the case of the auto LPG to a rate expressed in terms of a thousand litres. Changes to the rates in fuel oil will take effect from midnight tonight. The reduction in the auto LPG rate will take effect on and from 1 March. It is estimated that the change in the fuel oil rates will cost £2 million in 1993. The reduction in the auto LPG excise rate will have no net revenue effect as it will be offset by the increase in the VAT rate in the product which comes into effect on 1 March. The CPI effect on these changes is expected to be negligible.
Three separate rates of excise duty apply currently to fuel oil. Fuel oil used in the manufacture of alumina has a nil rate, fuel oil used by the ESB to generate electricity is liable at the rate of £1.53 per hectolitre or 7p a gallon and fuel oil used for any other purpose is liable at the rate of 76p per hectolitre or 3.4p a gallon. The EC directive on excise duty rates on oil has fixed a minimum rate which must be applied from 1 January 1993 to heavy fuel oil throughout the Community at the equivalent of 13 ECU per thousand litres. This is equivalent to just over 4.4p per gallon. Under the relevant EC directive we can maintain the nil rate on fuel oil used in the manufacture of alumina.
The position regarding fuel oil in the Aughinish plant will not, therefore, change. An increase of 1p on heavy fuel oil used by industry other than Aughinish is the minimum necessary to comply with EC law and will also apply to recycled waste oil which is used as fuel oil. It is not anticipated that this change will give rise to any significant adverse impact on industry since all members states will have to respect this minimum.