HC Deb 20 June 2002 vol 387 cc451-3W
30. Paddy Tipping

To ask the Chancellor of the Exchequer if he will make a statement on rates of duty for(a) biodiesel/bioethanol and (b) fossil gas fuels, LPG and CNG. [60369]

John Healey

We shall be introducing a new, lower rate of duty on biodiesel on Royal Assent to the Finance Bill, 20 pence per litre less than the rate for ultra-low sulphur mineral diesel. We have also introduced duty incentives to encourage the production and use of road fuel gases, such as compressed natural gas (CNG) and liquefied petroleum gas (LPG) and have given a commitment that duty on these fuels will be frozen in real terms until at least 2004.

John Barrett

To ask the Chancellor of the Exchequer what consideration has been given to the(a) chemical marking of and (b) addition of yellow dye to UK petrol and diesel to deter the sale and use of illegal fuel. [62942]

John Healey

The Government set out their strategy for tackling the misuse of marked rebated oils as road fuels in "Tackling Indirect Tax Fraud", published alongside the 2001 pre-Budget report. Following consultations, action is being taken to tighten fiscal control over the distribution of rebated oils and to introduce an additional European marker for rebated gas oil and rebated kerosene. The Government have seen no evidence that marking legitimate duty paid fuel would constitute a more effective or pragmatic response to the problem.

Mr. Dodds

To ask the Chancellor of the Exchequer what assessment he has made of the impact of cross-border fuel smuggling on the Northern Ireland economy. [62644]

John Healey

The Government are committed to tackling fuel duty evasion and its associated problems in Northern Ireland. Further details about road fuels fraud in Northern Ireland and the Government's activities to counter it have been published in the documents "Tackling Indirect Tax Fraud" (November 2001) and the Northern Ireland Organised Crime Task Force's "Threat Assessment and Strategy" documents (May 2002). Copies of these documents have been placed in the House of Commons Library.

Mr. Dodds

To ask the Chancellor of the Exchequer if he will make an assessment of the amount of duty lost because of smuggling between the Republic of Ireland and Northern Ireland over the last 12 months. [62936]

John Healey

Customs' most recent estimate of the total revenue loss from the use of non-UK duty paid fuels, including legitimate cross-border shopping as well as all types of fraud, is for the calendar year 2000 and is contained in "Tackling Indirect Tax Fraud", published in November 2001 as part of the PBR. The Government have undertaken to update those figures annually.

Mr. Dodds

To ask the Chancellor of the Exchequer what the average cost is of a litre of(a) unleaded petrol and (b) diesel fuel in (i) Northern Ireland and (ii) the rest of the United Kingdom; and what proportion of the cost is made up of fuel duty in each case. [62639]

John Healey

The Department of Trade and Industry collect information on the average pump prices of unleaded petrol and diesel on a weekly basis across the UK. However, this information is not broken down by geographical region and so it is not possible to provide average costs for Northern Ireland specifically.

DTI data suggests that, as at 10 June 2002, the UK average pump price of a litre of diesel was 76.1 pence and the UK average pump price of a litre of unleaded petrol was 74.6 pence.

At those prices, 60.2 per cent. of the price of a litre of diesel and 61.4 per cent. of the price of a litre of petrol is made up from fuel duty.

John Barrett

To ask the Chancellor of the Exchequer how many motor vehicles were seized in(a) Scotland and (b) the United Kingdom as a result of fuel fraud, in each year since 1995. [62943]

John Healey

Customs records of the number of vehicles seized do not disaggregate between the nature of the offences involved in each case. I regret, therefore, that this information is not available.

John Barrett

To ask the Chancellor of the Exchequer what the estimated annual cost to the Treasury is from illegal use of red diesel. [62938]

John Healey

Customs latest estimates of the overall revenue loss from all forms of oils fraud were set out in the document "Tackling Indirect Tax Fraud" published in November 2001.

Customs believe the great majority of fraud on the British mainland involves the misuse of rebated or low tax fuels supplied for non-road use, but a specific estimate of loss from red diesel alone is not available.

John Barrett

To ask the Chancellor of the Exchequer what assessment has been made of the use of illegally produced fuel in the financing of paramilitary organisations. [62945]

John Healey

Customs have made no such assessment. However, the Northern Ireland Organised Crime Task Force's Year Two "Threat Assessment", which was published in May 2002, contains further information on the role of serious and organised crime in oils fraud. Copies of this document have been placed in the House of Commons Library.

Forward to