Northern Ireland quarry business 'could lose £500k' over red diesel restrictions

The managing director of a quarry has told UTV his business could lose £500,000, because of impending restrictions on the use of red diesel.

From April, a change in the law means that the fuel can only be used in certain sectors, as the Government aims to meet environmental targets.

But some businesses, including those in the construction sector, say that they're just not ready for such a change.

"We currently use about 1million litres a year of fuel," Paul Brogan from McQuillan Companies told UTV.

"So in rough terms this will cost us £450,000 to £500,000 per annum, just as a result of the removal of that rebate."

The Government wants to reduce carbon emissions across the UK and to improve air quality - something it believes could be hampered if action is not taken.

But industry bosses say the immediate move from red to white diesel, which is more expensive, could be disastrous.

The change means that from April, the fuel can only be used in agriculture as well as for our rail transport system and in non-commercial premises.

Machinery such as generators will no longer be able to be powered by red diesel.

"This will have a disastrous impact on our economy," said DUP MP Carla Lockhart.

"It will cost our economy millions and it will see a reduction in services here, drive up the price of houses for both public and private use."

The Government says it hopes the move will encourage businesses to improve their energy efficiency and move away from fuel completely.