Ministers Block Fair Fuel Prices for Far North
July 6, 2006 12:00 AM
Local MP John Thurso has criticised the Government for failing to support an amendment to the Finance Bill which would have reduced the premium on diesel and petrol paid in Far North filling stations.
Labour Treasury Minister, John Healey, opposed the plan in Parliament on Tuesday evening arguing that "the price of a pint of beer in London is significantly higher than elsewhere in the country but we do not make tax adjustments to compensate for that."
Commenting after the vote John Thurso said:
"It is outrageous that the Minister should seek to compare the cost of a pint of lager in London with the burden that local people in the North bear through the premium they have to pay for fuel costs. He is demonstrating that the Government have no concept of the genuine difficulties faced in remote rural areas, where the car is a vital necessity because there is not, and never will be, viable public transport alternatives for daily use.
"When raising this issue in a debate in Westminster Hall, I was told by the then Treasury Minister that the EU derogation which would permit such a scheme could not be applied. Since then the French have brought in exactly such a scheme and people will be justifiably angry to know that UK Ministers supported the French derogation. It is now clear that the Treasury could, but will not, help.
"The cost to the Exchequer of giving such relief as we proposed in our new clause has been estimated as less than £3.5million, which is roughly equivalent to the extra VAT paid by Northern residents on the higher fuel costs. This was a lamentable decision by the Government who have shown they have no regard for equality of taxation when it comes to remote areas. We may have lost the fight but we have clearly won the argument and I will continue to press the Government."
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