HC Deb 15 February 1972 vol 831 cc220-1
2. Mr. Simeons

asked the Chancellor of the Exchequer if he will reconsider his intention to place a tax on gas for use as fuel for road vehicles.

Mr. Maurice Macmillan

All aspects of this matter, including in particular the effects on pollution, were fully discussed during the debate on last year's Finance Bill and I see no reason for interfering with the decision taken by the House then.

Mr. Simeons

Will my hon. Friend bear in mind that there is a risk of him chasing his own tail and that if he creates a disincentive for people to use fuels which will not contaminate the air, they will use those which do, with the result that large amounts of money will be poured out by his hon. and right hon. Friends in mopping up the atmosphere?

Mr. Macmillan

The difficulty is that a relatively small displacement from normal road vehicle fuel has a relatively large effect on revenue but not on the environment. The limited supplies of liquid petroleum gas now available are being fully used industrially where their effect in preventing pollution is as good as on the roads. The use of these fuels, as my right hon. Friend the Secretary of State for the Environment made clear, does not obviate the need for making ordinary motor fuels less polluted.

Mr. Crouch

May I draw to my hon. Friend's attention the fact that since we debated this matter last year there has been a substantial development in industry involving the use of liquid petroleum gas for reducing smoke emission in diesel engines? Is he aware that this work is only partly under way and that there is a great deal to be done? Will he consider discussing this with his right hon. Friend the Secretary of State for the Environment?

Mr. Macmillan

Most certainly. As my hon. Friend said, this work is of necessity development work. It is kept under review not only by the Treasury but by the Department of the Environment.