HC Deb 22 February 1966 vol 725 cc219-20
23. Mr. Younger

asked the Chancellor of the Exchequer what representations he has received from local authorities in Ayrshire regarding tax policy on fuel oil used by public service vehicles.

Mr. MacDermot

My right hon. Friend has received three letters favouring the abolition of the duty on bus fuel oil.

Mr. Younger

Is the hon. and learned Gentleman aware that local authorities representing all political views in Ayrshire are united in the view that the tax is against the public interest? Will he, therefore, state clearly whether it is desirable, in his opinion, that costs in public service transport should be reduced and fares to the travelling public reduced also?

Mr. MacDermot

Part of that question is for my right hon. Friend the Minister of Transport and I certainly cannot anticipate my right hon. Friend's Budget Statement. I am aware of the widespread representations—highly organised—which have been made by local authorities on this matter. They are perfectly properly made, of course. However, any proposition to increase the grants—there is the grant of 6d. a gallon—must be looked at against our economic situation and the increased demands of public expenditure on our resources.

Mr. Rankin

Were not these representations made to a succession of Tory Chancellors? What was the result?

Mr. MacDermot

I do not know what the result was from them—I think it was nothing—but the result last year was that the present grant of 6d. a gallon was made, which costs over £4 million a year.