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Oil: Waste Management

Volume 481: debated on Tuesday 21 October 2008

To ask the Secretary of State for Environment, Food and Rural Affairs what discussions he has had with the Treasury as to whether the rate of duty to be applied to waste-derived fuel oil from 1 November 2008 is consistent with Government obligations under the Waste Framework Directive to encourage the recovery and reuse of waste. (226817)

The Waste Oil Directive requires member states to ensure the collection and correct management of waste oil and to take measures to give priority to the regeneration of waste oil above combustion. As a specific measure applying to waste oil, the Waste Oil Directive takes precedence over the Waste Framework Directive.

It is the view of the Government that the duty regime applicable to waste derived fuel oil from 1 November 2008 should have no adverse effects on the volume of waste oil collected, as correct management of hazardous waste is a legal requirement. Waste oil has a value and there will continue to be a demand for waste-derived fuel. A higher duty rate for waste-derived fuel could also encourage the provision of regeneration of waste oil in preference to combustion.

I have not held discussions on this issue with the Chancellor of the Exchequer, but officials in my Department are in regular contact with officials in HM Revenue and Customs on this issue.