§ Mr. Don FosterTo ask the Chancellor of the Exchequer when it is intended to introduce duty incentives for sulphur-free fuels; what duty incentive he plans; and on what bases EU agreement is required before any duty incentive can be implemented. [52397]
§ Mr. BoatengAs we announced in the Budget, the Government will introduce incentives for sulphur-free fuels in 2003. The precise incentives will be for the Chancellor to decide, taking into account economic, social and environmental factors.
Giving a duty incentive for sulphur-free fuels is likely to require a derogation from the EC mineral oils structures directive.
§ Mr. Don FosterTo ask the Chancellor of the Exchequer when a new rate of duty for biodiesel at 20 pence below the ultra-low sulphur diesel rate will be available; what the total cost to the Treasury will be at(a) the outset of its introduction and (b) projected in the next three years; what recent assessment has been conducted by his Department of future use of biodiesel; and what assumptions he has made about the (i) current and (ii) projected future availability of biodiesel in the UK. [52399]
§ Mr. BoatengBudget 2002 confirmed that the new rate for biodiesel will take effect from Royal Assent of the Finance Bill. The revenue cost of the new rate was published in Table A2.1 of the Financial Statement and Budget report. As a result of the measure, biodiesel is assumed to take up a steadily increasing share of the diesel market, representing around two-thirds of 1 per cent. of the market by volume by 2006–07.
§ Mr. Don FosterTo ask the Chancellor of the Exchequer what the total cost to the Treasury will be at(a) the outset of its introduction and (b) projected in the next three years of the (i) freeze in duty on (A) liquefied petroleum gas, (B) compressed natural gas and (ii) enhanced capital allowances for investments in CNG fuelling infrastructure, as announced in the Budget. [52396]
§ Mr. Boateng(i) The revenue cost of the freeze in duty on gas for road fuel is negligible.
(ii) The cost for investments in CNG refuelling infrastructure is also negligible.
§ Mr. Don FosterTo ask the Chancellor of the Exchequer (1) what the total cost to the Treasury will be at(a) the outset of its introduction and (b) projected in the next three years of the reduction in VED for motorcycles announced in Budget 2002; [52393]
(2) what the total cost to the Treasury will be at (a) the outset of its introduction and (b) projected in the next three years of the (i) application of lower rates of air passenger duty to all EU applicant countries and Switzerland and (ii) the freeze in the duty from 1 November 2002; and if he will make a statement. [52381]
542W
§ Mr. BoatengThe costs of the reforms to motorcycle vehicle excise duty, application of lower rates of air passenger duty (APD) to European Union applicant countries and Switzerland from 1 November 2002, and the freeze in APD are set out in table A.1 (page 155) of the FSBR.
§ Mr. Don FosterTo ask the Chancellor of the Exchequer what the total cost to the Treasury will be at(a) the outset of its introduction and (b) projected in the next three years of the freeze in vehicle excise duty rates for lorries announced in Budget 2002; and if he will make a statement. [52388]
§ Mr. BoatengThe cost of freezing vehicle excise duty for lorries in Budget 2002 is forecast to be approximately £5 million a year for each of the three financial years 2002–03 to 2004–05.
§ Mr. Don FosterTo ask the Chancellor of the Exchequer what steps his Department plans to take to reform the fuel duty rebate for buses; and if he will make a statement. [52380]
§ Mr. BoatengTo ensure the most effective use of funds in improving bus services and delivering the Government's transport, environment and social objectives, the Chancellor announced in the Budget that a review of the support mechanisms for buses will he carried out as part of the forthcoming spending review and the current review of the 10-year plan. In particular, the review will consider fuel duty rebate for buses to assess whether it provides effective support for buses in a way that is consistent with Government objectives.