Red tape hits show aid from farmers

Aug 20 2008 by Dave Black, The Journal

ORGANISERS of one of the region’s most popular agricultural shows have been forced to turn away offers of help from local farmers – because the taxman says they would be breaking the law.

For decades officials at the annual Glendale Show in Wooler have relied on the goodwill of farmers, who lend them their tractors and workers to help with the massive task of setting up the showground for the August Bank Holiday weekend event.

Now they have been forced into an expensive rethink after HM Revenue and Customs banned tractors running on red diesel helping to stage the show.

The law forbids the use of the farmers’ fuel except where, according to HMRC, there is a direct and tangible benefit to agriculture.

That, apparently, does not include the 115-year-old Glendale Show, despite the fact that it exists to promote and support the local farming, livestock and agricultural industry.

The problem came to light at the end of last year’s show, when a spot-check by HMRC officials revealed that a tractor helping with the clearing-up operations was running on red diesel. The tractor’s owner only narrowly escaped having it confiscated. The Glendale Agricultural Society was informed that the practice was against the law, meaning preparations for Monday’s show are having to be carried out with only tractors running on white diesel, which carries a higher rate of duty.

Yesterday show secretary Sarah Nelson said: “We went back to HMRC and told them that the show field has an agricultural holding number and that the event is all about agriculture.

“They were sympathetic but told us that we are not seen to have a direct, tangible benefit to agriculture. Until last year’s show we just didn’t realise it was an issue.

“We have had to stop using tractors running on red diesel and make sure we are doing things the right way. We don’t want to be antagonistic towards HMRC but the situation is annoying, expensive and a little daft.”

Sarah’s husband Stewart, who also helps run the show, said: “Last year the tractor they checked was seized and we were fortunately given a severe warning, instead of a fine. In future, we must use white diesel on the site of the show.”

The ruling means all loaned tractors must have their tanks drained and flushed before filling with white diesel, making their use virtually impossible.

Show organisers are relying on the use of just one loaned tractor which the owner is prepared to run on white diesel. In addition, North East Texaco distributor James D Johnson has agreed to support the additional costs of using the approved fuel in two tractors on show day.

Last night an HMRC spokeswoman said she could not comment on specific individuals or organisations.

Claims of heavy-handed tactics

LAST year HMRC officers were accused of heavy-handed tactics by searching for red diesel in tractors helping out at the Stanhope Agricultural Show and Country Fair in County Durham.

Some farmers were handed penalty notices after samples were taken from the vehicles, which were being used to pull trailers with fence posts, safety posts and other material for the show.

Red diesel is taxed at a lower rate than regular diesel so is less than half the price. Red dye is added to distinguish it from higher-tax fuel.

HMRC rules state that tractors or light agricultural vehicles used on public roads solely for agriculture, horticulture or forestry purposes, and for cutting verges, hedges or trees bordering public roads, can use red diesel.