Red diesel is a headache for pleasure boat owners

Lough Erne's boating community says they are experiencing a more peaceful summer due to rising fuel prices.

Red diesel is a headache for pleasure boat owners

Lough Erne's boating community says they are experiencing a more peaceful summer due to rising fuel prices.

One operator claims that his business is in decline by up to two-thirds.

Another source said that Northern Ireland's rental businesses are in a "disadvantage", as they cannot use red diesel to propel their vessels, unlike counterparts in the UK.

John Patrick McCaldin is the owner of a cruiser rental company with headquarters in Irvinestown and a subsidiary located in County Cavan.

"The average fuel bill has more that doubled." He says that the average weekly hire cost is approximately PS1,500 or PS250.

"Before PS100, it was not that bad. Now, you can expect to pay almost 20% more on top of your hire."

White diesel is currently at 196.0p per Liter, while red diesel is at 99.14p.

In an effort to meet its climate change goals, the UK government has banned red diesel (which is standard diesel but taxed at lower rates) in many sectors, including construction.

According to a government policy document, red diesel is diesel that was used primarily for off-road purposes such as to power cranes or bulldozers in construction, or oil extraction drills.

It was responsible for producing nearly 14 million tonnes of carbon dioxide per year and accounted for 15% of all diesel used in the UK.

The government granted permission for recreational boaters to use the vessel in England, Scotland, and Wales.

Due to Brexit obligations, this was not extended to Northern Ireland. It was also aligned with the fuel used by pleasure craft in Republic of Ireland.

McCaldin stated that if you make a comparison like-for-like, it's a competitive disadvantage to us.

"We must abide by it, while the rest of the UK does not."

"It's here and will stay until the [Northern Ireland] protocol is sorted out, which doesn’t seem to be anytime soon."

His business was able to benefit from the increase in staycations during the Covid-19 epidemic, when international travel was limited. But that has changed.

He says, "We are receiving a lot of cancellations. A lot more than previous years. I don't know whether it's because people are scared by the price of fuel or whether people want to go after Covid."

Mark Pancott is a local tourist who rents small pleasure boats in Enniskillen.

He says, "Everything is very final minute with our customers. We have very few advance reservations."

This makes it difficult to organize staff numbers and payroll.

"Fuel costs are an additional headache along with everything else."

However, the government stated that it would create a new relief program under which private pleasure craft owners in Northern Ireland could claim relief for the non-propulsion fuel they use.

Conor Byrne from Enniskillen says that the new rules make recreational boating even more expensive.

He says, "If an official comes to check my boat for marked diesel use, it will be positive because the boat has been using mark diesel for 20 years."

Mr. Byrne will need to completely replace or deep clean his tank in order to eliminate any remnants of the fuel.

His boat is quite old and he expects that it will need to be custom-made, at a "huge cost".

He adds, "When I put diesel into the tank, I keep a receipt to show the official in case they ever come to inspect."

A spokesperson for HM Revenue and Customs stated that the monitoring of diesel use in private pleasure boats in Northern Ireland will be done.

A spokesperson said that HMRC activity is focused on deterring illicit fuel outlets, and special units perform risk-based interventions in the fuel supply chain.

The Royal Yachting Association (RYA), the UK's governing body for sailing, opposed the ban on red diesel being used for vessel propulsion.

It stated to BBC News NI that RYA Northern Ireland and RYA continued to work closely with the boating and sailing community. They provide representation at the government level and offer advice on key issues."