To ask the Chancellor of the Exchequer what plans he has to introduce new measures to reduce taxation on alternative fuels such as biodiesel.

The European Commission has produced a draft directive on the reduction of excise duties on motor fuels from agricultural sources—biofuels. These proposals were reported to the House in an explanatory memorandum on Com(92)36. A detailed assessment of the proposal is currently being made by interested Government departments. As yet, there have been no Community discussions on the draft directive.