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 July 2, 2025
The Labour government is in crisis and facing mounting pressure to climbdown on its proposed changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).
By Carla Lockhart MP July 2, 2025
Upper Bann MP Carla Lockhart has called on the UK Government to ensure that parents of premature babies are properly supported through parental leave entitlements and has urged Northern Ireland to follow suit with legislative progress that reflects the unique challenges these families face.
By Carla Lockhart MP July 2, 2025
Upper Bann MP, Carla Lockhart has today issued a scathing criticism of the Secretary of State for Northern Ireland following his dismissive response to serious concerns raised in Parliament about the impact of the Windsor Framework on local businesses.
By Carla Lockhart MP July 2, 2025
Upper Bann MP, Carla Lockhart, has praised the organisers, volunteers, and local community following a highly successful Northern Ireland Kidney Research Fund Vintage Cavalcade held in Waringstown.
By Carla Lockhart MP July 2, 2025
Upper Bann MP, Carla Lockhart, has strongly criticised the Infrastructure Minister following the latest announcement of part-time 20mph speed limits outside schools with not a single school in Upper Bann included in the new tranche.
By Carla Lockhart MP July 2, 2025
Upper Bann MP, Carla Lockhart, has paid tribute to the warmth and generosity of the Waringstown community following her visit to a special coffee morning hosted by Evelyn Hall in memory of her late husband, Mervyn, on what would have been his birthday.
By Carla Lockhart MP July 4, 2025
Upper Bann MP, Carla Lockhart, has strongly criticised the Infrastructure Minister following the latest announcement of part-time 20mph speed limits outside schools with not a single school in Upper Bann included in the new tranche.
By Carla Lockhart MP July 1, 2025
Upper Bann MP, Carla Lockhart, has strongly condemned the Government’s handling of today’s welfare reform debate, describing the scenes in the House of Commons as “pantomime politics at its best.” The debate on the Personal Independence Payment (PIP) and Universal Credit Bill was marked by confusion, with significant policy changes announced live from the despatch box, leaving MPs reacting to legislation that was changing before their eyes.
By Carla Lockhart MP July 1, 2025
Upper Bann MP Carla Lockhart is appealing to livestock farmers in Northern Ireland to remain vigilant as the threat from Bluetongue disease increases.
By Carla Lockhart MP June 26, 2025
Upper Bann MP and DUP Westminster Agriculture Spokesperson Carla Lockhart has tabled an Early Day Motion in the House of Commons opposing the enforcement of burdensome EU regulations on the movement of used agricultural and forestry machinery from Great Britain to Northern Ireland.
More Posts