Mr John Healey (Economic Secretary, HM Treasury; Wentworth, Labour)

The clause is largely technical. It will ensure that biodiesel that is set aside or used for the production of bioblend is charged with duty. Bioblend is a mixture of biodiesel and heavy oil that has not been charged with the excise duty on hydrocarbon oil. Bioblend is made in-warehouse in duty suspension.

The clause is intended to make the charge to duty for biodiesel used in the production of bioblend accord more sensibly with warehousing rules. If immediately entered for warehousing, the duty will be suspended.

The change comes into effect on 1 January 2005, at the same time as the new reduced rate of duty for bioethanol. There will be a similar provision relating to bioethanol blends. On that basis, I commend the clause to the Committee.

Mr Andrew Tyrie (Chichester, Conservative)

This is a subject on which my right hon. Friend the Member for Fylde could wax lyrical at great length, but I hope that we will not allow him to do so.

Mr Chris Bryant (Rhondda, Labour)

Tory discipline.

Mr Andrew Tyrie (Chichester, Conservative)

It is improving.

I have one very narrow question. Is part of the purpose of the clause to discourage imports of bioblend?

Mr John Healey (Economic Secretary, HM Treasury; Wentworth, Labour)

No.

Question put and agreed to.

Clause 11 ordered to stand part of the Bill.