8 December 2006. Navigators and General, the UK's leading pleasure craft insurer and part of the Zurich group, has reacted with disappointment after the European Commission decided to reject the UK Government's application to renew the derogation on red diesel for private boat users.
From 1 January 2007 all diesel used for private boating purposes is now likely to be taxed at the same rate as road diesel, effectively doubling the existing price of red diesel to around £1 per litre.
Navigators and General is now calling for the UK Government to consider creating a separate taxation rate for marine leisure fuel, which could soften the blow to the country's boat users.
Richard Coleman, Head of Navigators and General, said, "We are very disappointed with this decision. It will have a huge and negative impact on the boating and yachting world. The move will not only see an increase in prices, but will also encourage people to use less environmental - and more flammable - petrol engines, and potentially force some UK boat owners into overseas ports, using overseas fuel."
We would ask the UK Government to live up to its commitment to consult with the industry on alternative plans as soon as possible. On behalf of the thousands of boat and yacht owners we insure, we also urge the Government to consider a graduated timeline for introducing the new taxation levels which would soften the blow to the UK's boating community."
For further information contact:
Keith Lewis, Zurich Media Relations
Tel: 01489 561708
E-mail: keith.lewis@uk.zurich.com
Or
Richard Coleman, Navigators & General
Tel : 01273 863411
E-mail: richard.coleman@navandgen.co.uk
Notes to Editors:
Zurich Financial Services is an insurance-based financial services provider with a global network that focuses its activities on its key markets in North America and Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. Zurich has offices in more than 50 countries and employs about 57,000 people.
