HL Deb 26 November 2001 vol 629 c6WA
Lord Donoughue

asked Her Majesty's Government:

Further to the Written Answer by Lord McIntosh of Haringey on 31 October (WA 162)—

  1. (a) which categories of off-road vehicles (including railways) qualify for the privileged use of "red diesel"; and
  2. (b) which category Customs assesses to be the largest user of red diesel; and [HL1353]

Further to the Written Answer by Lord McIntosh of Haringey on 31 October (WA 162) stating that "Customs data … do not indicate the end use", how it is officially decided that a user is or is not within the categories qualified legally to enjoy this privileged rate of duty. [HL1354]

Lord McIntosh of Haringey

The categories of off-road vehicles entitled to use red diesel are set out in Schedule 1 to the Hydrocarbon Oil Duties Act. (HODA) 1979. Customs has made no assessment of the quantities of red diesel used by different categories.

In deciding eligibility to the rebated rate of duty, the user (the individual or company buying rebated oil) must be satisfied that the end use to which the rebated fuel is put is an eligible one, based on the definitions set out in HODA (and explained in Customs and Excise Notice 75 (Fuel for diesel vehicles)). For the majority of users, this decision is clear cut and is based on the type of vehicle the fuel will be used in and where it will be used (HODA Sections 11–12 and Schedule 1). Where there is any doubt, they should consult their supplier for advice and contact the Customs National Advice Service if unsure.

Customs' road fuel testing units provide checks, targeted to particular risks, which aim to detect and discourage misuse of these fuels as road fuels. In doing so, they will seek evidence in support of the user's judgment of eligibility.