HC Deb 20 January 1975 vol 884 cc1004-5
12. Mr. MacGregor

asked the Secretary of State for Energy whether he will introduce a scheme for petrol vouchers for specific groups in need in rural areas.

Mr. John Smith

I have the problems of those in rural areas very much in mind, but there are others who are equally affected by the rise in petrol prices. To attempt to provide relief to special groups would be administratively difficult and costly, would be seen as discriminatory and would encourage petrol consumption at a time when the utmost economy is essential.

Mr. MacGregor

I recognise the need for the utmost economy, but may I reinforce the point by reminding the Minister that longer journeys are more necessary in rural areas than in most other areas, not only to and from work but for other essential purposes, and that there is simply no alternative employment or transport available? I urge the Minister to recognise that not only hardship but real damage will in many cases be caused unless he comes forward with a solution soon.

Mr. Smith

As I have already made clear, the Government are fully aware of the problems of people living in rural areas, especially among those who have to use a car to get to work. But it is difficult to isolate rural consumers from other consumers of petrol in any effective or clear way, and any solution will have to be on a more general basis which will help rural people among others.

Mr. Arthur Lewis

On my hon. Friend's last point, will he consult the Chancellor of the Exchequer to see whether, since most business people enjoy tax rebates and assistance with their cars and petrol, there should be a general allowance to all income tax payers? All that would then remain would be for a special scheme to be made for pensioners and others who did not come under the tax scheme.

Mr. Smith

My hon. Friend has recognised that this is a matter for my right hon. Friend the Chancellor, and I shall certainly bring it to his attention.

Mr. Skeet

Does the Minister accept that a voucher system would be a rather expensive method for the motorist? Is he aware that those with company cars would derive considerable advantage? Before introducing any such scheme, will he take account of the view of the 32,000 retail outlets?

Mr. Smith

We shall consult all appropriate people with experience before we introduce any scheme. The hon. Member mentioned company cars. There is now quite a lot of feeling that some people with company cars are abusing the system by using them for personal purposes and thereby getting relief from VAT. I hope that the companies which have control over this will stop it.