Vol. 521 No. 3
116 Mr. Yates asked the Minister for Finance the plans, if any, he has to allow the haulage industry to legitimately use green diesel in order to avoid the current black economy problems and free up personnel in Customs and avoid unfair competition which would support the margins of the haulage sector; and if he will make a statement on the matter. [17013/00]
I would like to inform the House that it is an offence to use marked gas oil, commonly referred to as green diesel, in a motor vehicle. I have no plans therefore to allow the road haulage industry to use this product. The typical legitimate uses of green diesel are as follows: in vehicles or machinery, for example, agricultural machinery, including agricultural tractors, which do not come under the definition of a motor vehicle for excise purposes; in boats in inland waterways; for home heating purposes, and in stationary engines.
The rebated rate of excise duty for green diesel is £37.30 per 1,000 litres, while the full rate of duty on diesel for automotive purposes is £256.14 per 1,000 litres.
I am informed by the Revenue Commissioners that the receipts from automotive diesel for the current year are estimated at £525 million. If the low rate of duty of £37.30 per 1,000 litres were to be applied to diesel used in the haulage trade, the loss to the Exchequer would be approximately £404 million in a full year on the assumption that in excess of 90% of all automotive diesel is used by goods vehicles.
