HC Deb 15 January 2002 vol 378 c226W
Mr. Lidington

To ask the Chancellor of the Exchequer (1) if it is his policy to use the level of fuel duty as an environmental policy tool; [26420]

(2) what his policy is towards the option of seeking a derogation under article 8.4 of the Mineral Oil Directive (92/81/EC) to allow a lower rate of duty to be applied to a given quantity of bio-transport fuel; [26442]

(3) what his policy is towards duty derogation under the Pilot Plant scheme to encourage the use of bio-fuels; [26443]

(4) if it is his policy to impose a fuel escalator if crude oil prices trade at a level sharply below that pertaining at the time of the 2000 and 2001 Budgets. [26527]

Mr. Boateng

It is our policy to review all taxes annually as part of the Budget process. In making his judgment, my right hon. Friend the Chancellor considers all relevant economic, social and environmental factors.

We have already announced that, under the Green Fuel Challenge, we will be seeking a derogation under Article 8(4) of the mineral oils structures directive to enable us to introduce a reduced rate of duty for biodiesel later this year; and, subject to European agreement, we will be providing a duty exemption for a pilot project involving biogas.

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