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 15, 2026
Upper Bann MP Carla Lockhart has praised the strength of community spirit across the constituency following a busy Saturday attending a range of local events and initiatives.
By Carla Lockhart MP April 14, 2026
DUP Upper Bann MP Carla Lockhart has led a Parliamentary debate marking the first anniversary of the Supreme Court ruling in For Women Scotland v Scottish Ministers, warning that a year on, the Government has failed to deliver the clarity and protections women were promised.
By Carla Lockhart MP April 14, 2026
Upper Bann MP Carla Lockhart is co-ordinating a collaborative initiative which reflects shared demands from across the agriculture, haulage and construction industries, urgently calling for practical and meaningful solutions as the UK’s fuel crisis deepens.
By Carla Lockhart MP April 11, 2026
DUP Upper Bann MP Carla Lockhart has issued a stark warning to the UK Government, urging immediate action to support key sectors as pressure continues to build across agriculture, construction and haulage.
By Carla Lockhart MP April 10, 2026
Upper Bann MP Carla Lockhart has accused the Labour Government of betraying the UK’s agricultural industry and generations of farmers who work tirelessly to feed the nation.
By Carla Lockhart MP April 10, 2026
DUP Agriculture spokesperson, Carla Lockhart MP, has said that farmers must not be burdened with unjustified bureaucracy under the guise of sustainability, warning that current carbon auditing proposals risk undermining confidence across the NI agri-food sector.
By Carla Lockhart MP April 8, 2026
Upper Bann MP Carla Lockhart has welcomed the reopening of Oggies Dessert Bar in Banbridge following a significant refurbishment, praising the business as a key contributor to the local economy.
By Carla Lockhart MP April 8, 2026
Upper Bann MP Carla Lockhart has welcomed a significant increase in donations from Banbridge as part of this year’s Big Bucket Collection in support of Evora Hospice.
By Carla Lockhart MP April 3, 2026
DUP Upper Bann MP Carla Lockhart has strongly condemned the latest incident in Lurgan, in which the so-called New IRA has admitted responsibility for a proxy bomb attack targeting a pizza delivery driver and the PSNI.
By Carla Lockhart MP April 2, 2026
Upper Bann MP Carla Lockhart has criticised the European Commission’s decision to press ahead with the provisional application of the Mercosur trade agreement from 1st May 2026, despite the fact it remains subject to ongoing legal scrutiny.