PEUGEOT says it remains committed to convincing the Government of the environmental credentials of clean diesel technology. The manufacturer has restated its intention to reverse The Government's decision to penalise oil-burners in the new carbon dioxide-based company car tax regime.

In March, amid the furore following the Government's reiteration in the Budget of plans to impose on diesels a 3% benefit-in-kind supplement from 2002, Peugeot UK's managing director, Tod Evans, said the company would 'prove' to ministers that the decision should be reversed. He was backed by leading figures from Britain's other leading fleet diesel manufacturers, Ford, Vauxhall and Volkswagen.

Evans said he would arrange a demonstration to show how clean the combined technologies of common rail diesel engines and particulate filters are, but the presentation is still to be arranged.

A Peugeot spokesman said: 'The new 607 executive saloon is due to be launched in the summer as the first car in the world to have HDi and filter technology. That would be an appropriate time to arrange a demonstration. We are determined to fulfil this commitment, but we are in constant dialogue with the Government on issues like the Competition Commission and new car pricing so the communication channels are there when the time is right to turn our attention to diesel.'