Red alert wins approval
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a by Charles Young
Flaullers in rural areas have welcomed two moves in last week's Budget designed to clamp down on the illicit use of rebated red diesel by agricultural contractors who use their vehicles to carry out haulage. Customs and Excise has changed the regulations which allowed some agricultural tractors to run on red diesel, and has doubled the maximum fine for those caught using it to £500.
Before the Budget, agricultural tractors which were incapable of exceeding 25mph were eligible to run on red diesel no matter what work they were used for. From 1May 2000, however, no tractors will be allowed to run on red unless they are carrying out work "relating to agriculture, horticulture and forestry". Customs has effectively overturned a High Court ruling which allowed off-road tractors to use red diesel in accordance with the Hydrocarbon Oil Duties Act. The "off-road tractor" category has now been deleted from the act.
The move follows pressure from Customs officers in the field and from hauliers who have lost business to agricultural contractors who can offer general haulage at reduced rates.
One transport lawyer who has been battling to close this loophole says: "I'm very pleased. We see a way forward to reduce the amount of unfair competition with road haulage companies in this new legislation. The fine won't affect the big cowboys but it will stop some of the smaller ones."