INDUSTRY NEWS
Trade bodies call for more time and targeted support to help construction, mineral products and manufacturing to switch to greener fuel alternatives.
Loss of red diesel rebate could cost NI £25m
PREPARE FOR HIKES IN MATERIAL, MANUFACTURING AND CONSTRUCTION COSTS FROM APRIL, WARN TRADE BODIES…
F rom April 1, 2022, many sectors will lose their entitlement to use ‘red’ diesel and rebated biodiesel, with manufacturing, construction and mineral products being the industries most affected. The cost of losing the red diesel rebate
and power generation. Gordon Best, Regional Director
A reasonable extension of time would allow the more timely transition to alternative fuels and protect jobs and our economy, ultimately enabling the carbon reduction we all seek.” Gavin Maguire, FMB NI Director said, “Construction continues to be leading the way towards a greener industry. Many sole traders and SME companies are making daily changes to how they operate and build. “In these challenging times there needs to be more time and urgent targeted support to help businesses in construction switch to greener alternatives which in some cases are not readily available. “In the meantime, the Treasury must accept that this will be an extra cost for business, which will likely feed through to the consumer.” Stephen Kelly, CEO Manufacturing NI, commented, “As a sector, we estimate that it will add tens of millions of pounds of new cost to firms who are already struggling to cope with huge inflation in energy, supply chain and employment costs.”
MPANI, commented, “Our Industry has always been at the forefront of new technology but the new zero carbon solutions that will be used to power the heavy equipment we depend on is still some years away. We believe that Government should have delayed the
in Northern Ireland is estimated at £20m to £25m. Red diesel is just ordinary ‘white’ diesel with a dye in it, but it is taxed at a much lower rate than white diesel. One of the biggest changes for construction and minerals industry users is that heavy plant and equipment of all kinds will no longer be
“…the newzero carbon solutions that will be used to power the heavy equipment we dependon is still some years away.”
removal of the rebate or at least phased out its use over the next five years.” Mark Spence, Managing Director of the CEF, commented, “At a time of unprecedented cost pressures on our
able to run on red diesel when used for construction and mining purposes. This includes all non-road mobile machinery (NRMM), including excavators, dumpers, shovels and cranes. The construction and mining industry will also lose permission to use red diesel for commercial heating
industry, and in the absence of an obvious and robust alternative to diesel, the removal of the rebate at this time will do nothing to progress the carbon reduction agenda to which we are all committed, but will significantly increase the risk of business failure in our sector.
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