SNP PUSH FOR DEBATE TO LOWER FUEL DUTY

Attn: NEWSDESKS



POLITICAL / MOTORING/ ECONOMY CORRESPONDENTS


WESTMINSTER PROFITING FROM SKY HIGH FUEL COSTS


As it is revealed that rising oil prices are set to earn the Treasury a windfall of at least £2 billion an SNP MSP is seeking a Scottish Parliamentary debate on pressurising the Westminster government to meet its pledge to address the sky high costs of fuel.


It is also reported that the UK Tory/LibDem government will collect about £12 billion in tax on North Sea oil revenues – 20% more than ministers had forecast, according to latest figures.


SNP Chief Whip, Brian Adam MSP, has tabled a Scottish Parliamentary motion on the sky high costs of fuel seeking a debate on the issue.


Commenting the Aberdeen North MSP said:


“The SNP has consistently argued for a fuel stabiliser to bring prices down and help businesses and families.


“The figures reported today are astronomical and show the UK government profiting at the expense of ordinary motorists and hard pressed haulage businesses. It is all the more astonishing when it is considered the wealth in North Sea oil of Scotland’s coast.


“At the last UK general election the Tories promised a fuel duty stabiliser. If it were ever needed most it is now but those plans appear to have been forgotten.


“Businesses cannot afford to be kept hanging on by the Tories. The UK Government should commit to scrapping the duty and introducing a stabiliser now.”


“Every penny of fuel tax and duty heading to the Treasury is a penny out of Scotland’s economy and Scotland’s budget and will add to costs of goods across the country.


“The SNP is doing what we can to keep costs down for families and businesses with a freeze in the council tax, reduced business rates and free prescription charges but the UK Government are refusing to act.”


ENDS


Notes


1. Today’s report on how the UK Treasury is profiting from the increase in fuel prices can be read here:


Petrol price rises rake in £2bn for Treasury


http://www.telegraph.co.uk/news/uknews/8258024/Petrol-price-rises-rake-in-2bn-for-Treasury.html




2. Mr Adam’s motion can be read here:


S3M-07696 Brian Adam (Aberdeen North) (Scottish National Party): Fuel Tax Price Increase Double Whammy — That the Parliament notes that fuel prices throughout Scotland have increased again due to the rise in VAT to 20% and an increase in fuel duty by the UK Government in January adding 0.76p to the price of a litre of petrol and diesel making diesel prices the second highest in Europe; notes that 62% of the cost of an average litre of diesel is tax as opposed to a European average of 49%; notes that in Aberdeen, despite its being known as Europe's oil capital, petrol and diesel prices in January were again over 130p per litre, which has increased costs for small businesses and the road haulage industry, which it considers have been forced to pass increases on to customers, contributing to rising inflation, and believes that cutting the cost of fuel by 10p per litre in Scotland would cost only about half of the estimated £1 billion in extra revenue that the Treasury is set to take in as a result of rising oil prices.


Supported by: Stewart Stevenson, Christine Grahame, John Wilson, Gil Paterson, Bill Kidd, Stewart Maxwell, Dr Alasdair Allan, Michael Matheson, Sandra White, Kenneth Gibson, Jamie Hepburn, Joe FitzPatrick, Stuart McMillan, Maureen Watt






Lodged on Wednesday, January 12, 2011; Current