THE marine trade’s spokesman has accused the minister for Commerce and Employment of skirting the issue over fuel duty. Guernsey Marine Traders Association president Ben Mahy defended retailers’ fuel prices and criticised Deputy Stuart Falla for his comments in Thursday’s States debate.
‘The issue at stake is fuel duty,’ said Mr Mahy. ‘Directing attention away from the issue of fuel duty by raising the issue of cost is not very helpful.
‘Natural competition will create the cheapest fuel prices. Jersey - the closest and most effective of competitors - has decided not to put duty on marine fuel.’
Mr Mahy believes the 13p duty on marine petrol is a threat to Guernsey’s £25m.-a-year boating industry.
Deputy Falla had told the House that businesses should cut prices to be more competitive.
And yesterday he justified his remarks which, he said, were based on the findings of a recent investigation into Guernsey’s energy market.
The report - which was criticised by the motor trade - found prices at the Boatworks+ fuelling station were ‘towards the top end of retail fuel prices in Guernsey’, but acknowledged that a discount system was in place.
Mr Mahy said: ‘Guernsey prices are very competitive in the local region but with removing duty they could obviously improve.
‘It is an opportunity to be more attractive and to encourage more business which has been overlooked.
‘Of all ministers, the minister for Commerce and Employment should have been in support as his government business plan is to encourage more business.
‘I think he could focus his attention more on the £25m. that is brought to the island.’
The States also reversed a decision to levy an extra 14p per litre duty against boatowners when motor tax is scrapped at the end of the year.
Mr Mahy said this was the only intelligent decision to make.
‘The minister of Treasury and Resources Lyndon Trott, by his own admission, is correcting a wrong decision,’ he said.
‘There is no justification for boat owners to pay for the upkeep of island roads.
‘They’re already taxed for the upkeep of the harbours through marina charges.’
Mr Mahy estimates that about 15% of marina charges go on harbour maintenance.
Mr Mahy said he would be back in touch Deputy Mark Dorey, whose amendment to scrap all duty on marine petrol and increase harbour dues, was thrown out of the House on a technicality.
Article posted on 30th June, 2007 - 12.00am
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