§ Mr. FavellTo ask the Secretary of State for Transport what is his latest estimate of the cost of the implementation of European Community draft directive document No. 6701/90 on pollution from diesel engines to(a) the Exchequer (i) directly and (ii) channelled via the European institutions and (b) industry.
§ Mr. ChopeIt is estimated that there will be no cost to the Exchequer either directly or via European institutions.552W The draft directive proposes to introduce stricter emission limits in two stages—1992–93 and 1995–96—with the potential for a third in 1999. They will affect diesel-engined trucks and buses over 3.5 tonnes. If the strictest limits for stage II are adopted, and if they result in an overall 4 per cent. fuel penalty, fuel costs in the United Kingdom would rise by £70 million, pre-tax, per year. Increases in capital costs would range, typically, from £500 for a 7.5-tonne truck costing £14,000 to £2,000 for a 38-tonne truck costing £45,000. The overall vehicle fleet replacement cost might rise by £60 million per year. Applying stage I limits would cost considerably less.
The cost of the implied reduction in the sulphur content of diesel fuel is uncertain but should not exceed 5p per gallon or £120 million a year for the 9 million tonnes of diesel consumed in the United Kingdom each year.