23 June 1995

Biofuel needs break

PROSPECTS for UK rape-based bio-diesel hang in the balance.

Next Tuesday the British Association for Bio-Fuels and Oils is to meet Customs and Excise officials, MAFF and the Departments of Transport and Environment to discuss the need for a tax break to encourage rape-based biofuel.

Several EU countries have already backed bio-diesel as a viable alternative to mineral diesel. Ironically, UK rape growers will export rapeseed from at least 800ha (2000 acres) to France for conversion to bio-diesel. There is no duty on biofuel in France.

&#8226 At the EU Finance Ministers meeting in Luxembourg this week, the EU Commission said tax breaks for bio-fuels would be contrary to the World Trade agreement, the CAP and Article 95 of the Treaty of Rome.