§ Mr. RuffleyTo ask the Secretary of State for Environment, Food and Rural Affairs what assessments she has made on the impact of changes in duty for biodiesel on British agriculture. [97392]
§ Mr. MeacherBiodiesel could offer an opportunity for diversification of agricultural activities and the development of new markets. Following the introduction of the reduction in duty by 20 pence per litre, compared to ultra-low sulphur diesel, in July 2002, we have yet to see biodiesel produced from British-grown oilseed rape. The duty cut is, however, already bringing forward production of biodiesel from used vegetable oil and over 60 forecourts in the UK are already retailing biodiesel. To develop biodiesel production from feedstocks from British agriculture, the return to farmers will need to be sufficient to compete with established food and animal feed markets which currently offer higher prices.