RED DIESEL CLIFF EDGE EDGING CLOSER WITH DISASTEROUS CONSEQUENCES ON THE CARDS

Carla Lockhart MP • March 13, 2022

RED DIESEL CLIFF EDGE EDGING CLOSER WITH DISASTEROUS CONSEQUENCES ON THE CARDS.

DUP MP Carla Lockhart has been actively mobilising the local construction, waste and transport industries to speak out against the proposed change to the red diesel rebate. This change will take effect as of 1st April with many businesses facing a cliff edge, adding to the already spiralling costs of fuel, materials, labour and electricity for businesses. In recent days the National Federation of Builders have said, “In diesel, the price hike will be considerable and comes at a time when even the tiniest shifts in prices can put businesses in jeopardy”, warned the trade body. Its call is echoed by the Road Haulage Association which has told Chancellor Rishi Sinak that many “small hauliers could go bust” and more locally the Mineral Products Association have said, “‘We believe the removal of the red diesel rebate, due to take place on 1 April 2022, is premature and must be reversed. In short, it is a cash grab dressed up as an environmental measure. The policy is flawed and does not encourage a move to zero-carbon fuels, as firms will simply switch to standard white diesel, with exactly the same carbon content.”


It is estimated that the cost to construction of this policy will be £20m to £25m and is likely to be passed on to private home builders, driving up house prices and it will undoubtedly impact the number of Government contracts available to the sectors with less money for building schools, hospitals and roads.


Speaking on the issue the Upper Bann MP said, “Unfortunately the Government are continuing to press ahead with the planned changes to the red diesel rebate. They seem intent on pushing the industry over the cliff edge on 1st April. It is clear this may lead to particularly small or medium sized construction businesses going out of business. It will increase transport costs for fresh food and will drive up house prices, and generally construction costs. It will also see an end to charity tractor runs which raise a significant amount of money for charity every year. 


The Government continue to say this is aimed at improving air quality and assisting in reaching NetZero, yet they have not once quantified by how much it will improve air quality. Reality is it will not in anyway improve it given that there are no alternatives for the industry. Whilst hydrogen powered plant is being developed it will take some years for it to be made available. It is imperative that the Government give time and space for the alternatives to be developed. The industry is in no way ducking their commitment to the environment and are ultimately asking for a realistic timescale for developing alternatives and then for the purchase of them in a phased approach. They agree with the policy but the timing is wrong.


This is a UK wide problem, but the industry in Northern Ireland faces the additional challenge of now being placed at a competitive disadvantage against industry in the Irish Republic, and the prospect of smuggling of diesel and mineral products is also increased. For local firms who have significant business in the Irish Republic, this is likely to cost them this trade. That is deeply unfair, and the Government must act to protect these businesses.


We need the Government to rethink this policy and step back from the 31st March deadline. We need a transition period to allow the intense development of alternative fuels and machinery that can be used using such fuels. The Treasury still has time to act. I urge it to do so.”

Share

By Carla Lockhart MP April 29, 2026
Carla Lockhart MP has reaffirmed her calls for the Agri-Food and Biosciences Institute (AFBI) to continue taking urgent steps to restore public and industry confidence, following a number of deeply concerning and widely reported incidents.
By Carla Lockhart MP April 29, 2026
Upper Bann MP Carla Lockhart has welcomed confirmation of a sharp rise in egg consumption across the UK, but warned that Northern Ireland’s dysfunctional planning system is preventing local producers from capitalising on this growing demand.
By Carla Lockhart MP April 29, 2026
Upper Bann MP Carla Lockhart has welcomed Education Minister Paul Givan MLA’s announcement that the Lurgan College School Enhancement Project will now progress to construction stage, describing it as a major milestone for the school and wider community.
By Carla Lockhart MP April 29, 2026
Upper Bann MP Carla Lockhart has opened the Hope 4 M.E & Fibro Exhibition at Millennium Court, using the event to highlight the urgent need for greater awareness, improved support and better services for those living with Fibromyalgia, M.E. and Long Covid.
By Carla Lockhart MP April 29, 2026
Upper Bann MP Carla Lockhart has welcomed pupils from Ballydown Primary School, Banbridge, and Clounagh Junior High School to Westminster this week, describing the visit as a fantastic opportunity for young people to experience Parliament first-hand and engage with politics at the heart of government.
By Carla Lockhart MP April 29, 2026
Upper Bann MP Carla Lockhart has said she voted this week against the Government’s Carry-Over Motion on legacy legislation because she could not support measures which leave those who served in the security forces exposed while terrorists and those who backed them seek to rewrite the past.
By Carla Lockhart MP April 29, 2026
Upper Bann MP Carla Lockhart has once again shown her support for grassroots community initiatives by taking part in the Waringstown Big Spring Clean-Up, organised by the Well Kept Waringstown group as part of the wider Live Here Love Here campaign.
By Carla Lockhart MP April 29, 2026
Upper Bann MP Carla Lockhart has welcomed the success of another coffee morning hosted by Fibro Friends Banbridge, praising the group’s growing impact in supporting those living with Fibromyalgia and ME.
By Carla Lockhart MP April 29, 2026
Upper Bann MP Carla Lockhart has praised the tremendous community spirit on display at Ballytyrone Orange Hall after attending its hugely successful Bellybuster Fry fundraiser.
By Carla Lockhart MP April 29, 2026
Upper Bann MP Carla Lockhart has welcomed landmark legislation to recognise British Sign Language and Irish Sign Language in law in Northern Ireland, describing it as a major breakthrough for rights, inclusion and accessibility.