Clause 13 - Warehousing

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

This clause will allow regulations to be made to bring some new energy products under duty suspension procedures. That is a necessary change, which will allow for free movement of those products within member states, and it updates UK legislation in line with Council directive 2003/96, known as the energy products directive.

The clause provides for warehousing regulations to apply to petroleum gas and biodiesel, as well as animal and vegetable fats and methanol intended for use as motor or heating fuel. Those products reflect current and potential future developments in the production of new fuels. By introducing the clause, the Government are ensuring that UK legislation keeps pace with revenue and trade requirements.

The clause helps to provide a package of measures, which will implement parts of the energy products directive. The directive, of course, repeals two earlier directives, which are incorporated into UK legislation, and largely includes the provisions contained in those directives. In making the relevant practical and necessary changes the Government have taken care

not to affect the scope or rate of duties in the UK. On that basis I commend this clause to the Committee as largely technical, but none the less necessary.

Question put and agreed to.

Clause 13 ordered to stand part of the Bill.