FINANCE BILL 2000
CUSTOMS AND EXCISE
RESOLUTION 7 CLAUSE 7: POWER TO AMEND DEFINITIONS OF TYPES OF HYDROCARBON OIL
SUMMARY
1. This clause gives the Treasury the power to amend, by order made by statutory instrument, those provisions in the Hydrocarbon Oil Duties Act 1979 which define the specifications of various hydrocarbon oils. This clause will take effect from Royal Assent.
DETAILS OF THE CLAUSE
2. The clause inserts a new section 2A into the Hydrocarbon Oil Duties Act 1979. This new section allows the Treasury, by way of order made by statutory instrument, to amend the specifications of ultra low sulphur petrol, ultra low sulphur diesel, higher octane unleaded petrol (also known as super unleaded or lead replacement petrol), and unleaded and leaded petrol. The order will be able to contain such incidental, supplementary and transitional provisions as the Treasury think appropriate. Any order must be laid in draft before, and approved by, the House of Commons.
BACKGROUND
3. The specifications for ultra low sulphur petrol, ultra low sulphur diesel, and higher octane, unleaded and leaded petrols are contained in various sections of the Hydrocarbon Oil Duties Act 1979. At present the only way to amend those definitions is in the Finance Act, and this is a cumbersome procedure for what might be small changes. Such changes also take up valuable Finance Bill space, and debating time.
4. This clause will allow the Treasury to make an order to change the specifications of these fuels. With today's technological advances the specifications of fuels are constantly changing, and some are now set out in EC Directives. Now we can react much more quickly to these changes. However there is a safeguard - the House will be required to pass a resolution approving the order before it can come into force.
CUSTOMS AND EXCISE
CLAUSE 7
5. The new specification for ultra low sulphur petrol, introduced in clause 5 is a good example of how this power might be used. The specification follows the current 2005 specification in EC Directive 98/70. This specification may change before 2005 and, therefore, under the terms of this clause the Treasury can amend this definition, if necessary, once they have consulted the trade.
6. The clause will come into effect from Royal Assent.