Sites could run dry in diesel drought

Site work will grind to a halt from 1 April if contractors and plant hirers have not signed up to Customs & Excise's Registered Dealer in Controlled Oil (RDCO) scheme.

The registration deadline was 14 February and those not registered may face difficulties in ordering supplies of red diesel from 1 April. Customs said it will extend the deadline up to the implementation date and there will be some "flexibility" in the first month. In theory, registration should not take long, but the expected last minute rush will create delays in processing firms' applications.

The RDCO scheme is designed to prevent duty-free diesel being mis-used (it is estimated to cost the Exchequer £600m per year). Companies dealing in red diesel must register and submit monthly returns showing where it has been used.

Dealing is defined as any company supplying diesel to another company - this includes a contractor allowing a subcontractor to refuel from an on-site bowser. Equally, a plant hire company sending out an item of plant with a full tank of fuel, but without an operator, is deemed a dealer.

In reality, most plant hire companies and contractors will have to register and if they have not, their fuel supplier may refuse to deliver after 1 April. "Companies must fit meters to the yard bunkers and site bowsers and record which vehicles are refuelled with red diesel to complete the monthly returns to Customs," said John Varcoe, technical, safety and training manager at the Construction Plant-hire Association (CPA).

The Hire Association Europe (HAE), the Construction Confederation and the CPA have confirmed they only became aware of their members' need to register just a few days ahead of the deadline. Indeed, when CJ called Customs' own helpline, a staff member said he had "only recently" been made aware that some plant hire companies and contractors may need to register.

Kevin Minton, the HAE's technical and safety manager, said: "Thanks to these new regulations having such a low key launch, we know that many companies are simply unaware of their new obligations."

Full details of the RDCO scheme can be found at the Customs website, www.hmce.gov.uk, and on its National Advice Line: 0845 010 9000.