Boats to be bailed out over petrol tax plans

TREASURY and Resources has bowed to public pressure and wants to drop plans to put extra tax on marine petrol. When the States meets later this month, minister Lyndon Trott will attempt to amend his department's proposals, which abolish car tax in favour of duty on fuel.

He was able to act after the Home Department said that it would not need additional resources to allow Customs to dye marine use petrol.

'I believe the Treasury and Resources Department was wrong not to recommend exempting petrol used exclusively in marine vessel engines and we have moved swiftly to correct that, by majority,' said Deputy Trott.

The move would lose the States about £70,000 a year. Currently, of the 27m. litres used island-wide each year, about 500,000 are for boats.

'The amount of revenue was never the significant issue,' said Deputy Trott, who added that he had fielded many calls from boat owners and had listened.

'The cost of policing was.'

The Guernsey Marine Traders' Association, which had campaigned against the proposal, called the decision a massive relief.

'The amount the marine industry is contributing to the economy is huge and we have to stay competitive in this marketplace. A very small change on paper could have a massive impact on the trade,' said president Ben Mahy.

He added that the island had more visiting crew than Jersey last year and the marine industry was worth at least as much as Jersey's.

Treasury and Resources will keep reviewing whether to implement a charge for diesel. It is assessing the impact of policy in other jurisdictions.

The States will debate the proposal on 25 October.