Clause 11 - Biodiesel

Finance Bill – in a Public Bill Committee at 3:00 pm on 6th May 2004.

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Question proposed, That the clause stand part of the Bill.

Photo of John Healey John Healey The Economic Secretary to the Treasury

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.

Photo of Andrew Tyrie Andrew Tyrie Shadow Financial Secretary

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.

Photo of Andrew Tyrie Andrew Tyrie Shadow Financial Secretary

It is improving.

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

Photo of John Healey John Healey The Economic Secretary to the Treasury

No.

Question put and agreed to.

Clause 11 ordered to stand part of the Bill.