Red diesel implications
2 August 2022
The subject of the red diesel rebate’s removal for construction users and the impact on hirers has been the subject of a good number of posts on the website in recent months and a number of issues have been discussed.
Amongst these is confusion caused because various sectors of industry are still able to use rebated red diesel, such as forestry, agriculture, horticulture and fish farming. Some users and hirers have asked what the dividing line is between, say, construction and certain aspects of forestry.
It's a topic that is addressed in the very helpful ‘Transitioning from Red Diesel’ guidance published by the Scottish Plant Owners Association, which can be downloaded here.
Amongst the information it contains is a theoretical situation of a contractor creating and maintaining forestry roads and stacking areas, which is a permissible task for using red diesel, since they are key to the management of a successful commercial forest.
However, the guidance says that consideration should be made concerning who is doing the work, and what that work entails. It suggests: “If, for example, the forester (or contractor working for them) does this work as a necessary part of their forestry operation, that would be an accepted forestry activity. If a roadbuilding/civils business does this work to create the road before any forestry takes place, that would be considered construction work which is a non-forestry activity.”
It also states that red diesel cannot be used for the construction of buildings or other structures used for purposes relating to agriculture, horticulture or forestry.
● Interestingly, the SPOA’s document also mentions the potential impact on construction training providers who must now use white diesel, at a time when trained operators and trainers are in short supply. The association estimates that the transition will result in an increase of between four and six per cent on the overall cost of any plant operator course.
