THE Treasury and Resources Department is concerned that it has been wrongly accused of damaging the island’s fishing industry.
Deputy minister Jonathan Le Tocq said there was no truth in the allegation that a ‘fuel hike’ was ‘crippling the industry’. There is no duty imposed on marine diesel, which is used by the vast majority of the island’s fishing fleet.
‘Marine fuel duty was a big issue in the middle of last year and I’m surprised that people can forget the duty position so quickly,’ said Deputy Le Tocq.
‘We said at the time there was no justification for introducing any duty on diesel used for marine purposes and that to do so would harm the island’s commercial fishing fleet and the marine leisure industry.
‘The department has no intention of putting any duty on marine diesel in the future.’
In addition, the marine industry successfully raised a campaign to pressure the States to reduce duty on marine petrol in June 2007.
The States originally decided to charge 27p a litre on petrol but then, following a second Treasury report, scrapped the extra 14p imposed to replace motor tax.
Deputy Le Tocq agreed that motor fuel prices generally had increased in recent months after the cost of crude oil approximately doubled during 2007 due to a slowdown in supply growth and increasing speculation.
He added that jurisdictions with low levels of duty, as in Guernsey, tended to see more volatility in prices at such times. Petrol and diesel both went up about 10p during 2007 before the motor tax increases came into effect in January.
Article posted on 1st April, 2008 - 2.29pm
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