SNP SEIZE ON RURAL FUEL ACTION RETREAT

For Immediate Release – Tuesday 18th January 2011



Attn: NEWS DESKS


TRANSPORT / POLITICAL CORRESPONDENTS


The SNP has seized on reports that introduction of a discount on fuel in remote rural areas in March's Budget have been shelved by the Treasury. It is understood that the UK Government will not even apply to the European Commission until after Budget day on 23 March.
 
The news comes as official statistics confirm significant rises in both the Consumer Prices Index (CPI) annual inflation and Retail Prices Index (RPI) inflation rates which have been partly pushed up by soaring fuel prices.

SNP Westminster Transport spokesperson Angus MacNeil MP said:

“This is not just disappointing, it is a despicable betrayal by the Tory LibDem government at a time when the country is crying out for action to bring down fuel costs.

“In their coalition agreement the Tories and LibDems clearly promised a pilot scheme, and now they are reneging on that commitment – they have not even raised the proposal with European Commission.


“People in the Highlands and Islands will be furious, not least Danny Alexander’s constituents who face some of the highest fuel prices in Europe. The LibDems pre-election promises at Westminster were clearly worthless, and now these failures will haunt them in the lead up to
the Holyrood elections in May.


“Figures reported this week show how the UK Treasury will collect an additional £2 billion in tax from North Sea oil revenues this year, on top of the £10 billion previously forecast. Scotland’s significant wealth from North Sea oil should be used to help its people and businesses rather than simply filling Treasury coffers in London.


Businesses and motorists cannot afford to be kept hanging on by the UK government.


“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

Note:


Reports of the retreat by the Treasury can be found here:


http://www.bbc.co.uk/news/uk-politics-12214986?utm_source=twitterfeed&utm_medium=twitter


Danny Alexander has been vocal in his opposition to high fuel prices:

1. In his leaflets during the General Election the Liberal Democrats stated: “Danny and the Lib Dems led efforts in Parliament to win a fair fuel and energy deal for rural communities. They would apply a lower rate of fuel duty to those with no alternative to long journeys by car.


2. On 12 April 2010 Mr Alexander’s constituency office issued a statement criticising the Conservatives for claiming to support fairer fuel prices for rural areas, when Conservative MPs at Westminster have repeatedly voted against the use of European powers to introduce a

lower rate of fuel duty for remote communities. Mr Alexander said:


"The case for a fair fuel deal for remote and rural communities is absolutely clear. People face longer journeys, much higher pump prices and few if any public transport alternatives. A lower rate of fuel duty is already available for remote and island areas in many other European countries. A rural fuel duty discount would help people in the Highlands & Islands at the pump, and help small independent filling stations to compete and survive.”


3. On 20 March 2010, speaking ahead of the pre-election Budget in March, Mr Alexander said: “It seems likely the Budget will mean a further increase in fuel duty in April, which would be madness at a time when people are struggling because of the recession and fuel prices have risen by as much as 20p in the last few months. The Treasury is already getting a big windfall from that through VAT. The idea that they should then impose a further punitive duty rise at this
time is wrong and would hit people in the Highlands especially hard because of the lack of alternatives in terms of public transport.”

4. On 8 February 2010, Mr Alexander said: “The Treasury could make a real difference by recognising that rural motorists already pay more for fuel, and have few, if any, alternatives to long journeys by private car. A reduced rate of duty would help them, and help boost business for lifeline independent fuel retailers.”


5. Speaking to the Strathspey and Badenoch Herald on 28 May 2008, Mr Alexander argued: "We should follow the example of other European countries and have a lower level of fuel tax in rural areas. That would give real, immediate benefit to people in the strath. I will be raising that with the Chancellor…The Government should also reverse its punitive and unnecessary decision to back-date higher road tax on gas-guzzling vehicles.


6. On 1 June 2009, Mr Alexander spoke of the Liberal Democrats plan to take their campaign for fairer fuel duty to the European Parliament. Mr Alexander said: “The steady rise in fuel prices is giving the Treasury a windfall, but causing serious problems for people living in

the Highlands.”

7. On 4 July 2006 Mr Alexander urged the Treasury to cut the rate of fuel duty in rural areas, he said: 'Taxing rural motorists off the road means wiping rural communities off the map. The Treasury is once again letting the Highlands and Islands down with a short-sighted policy which fails to recognise the effect on people with low incomes in remote areas."


8. On 20 June 2005, speaking to the Press and Journal, Mr Alexander said: "These figures confirm that it is people living in the most remote parts of the UK who have to pay the most for petrol and diesel.


This is unreasonable, given that car use is a necessity in large parts of my constituency. Why should communities that have the least public-transport options and the lowest amount of congestion pay the most for road use?"