HC Deb 28 April 1977 vol 930 cc1469-70
6. Mr. McCrindle

asked the Chancellor of the Exchequer how many representations he has received on the increases in petrol prices and vehicle duty since 29th March.

Mr. Joel Barnett

Up to 21st April my right hon. Friend had received 1,500 representations.

Mr. McCrindle

Has any intimation been received by the Government about the voting intentions of the Parliamentary Liberal Party on this question? Does he expect on this occasion that votes will follow threats, or is it likely that, as on the last occasion, we shall be marched up to the top of the hill and then down again by the Grand Old Duke of North Cornwall?

Mr. Barnett

I have to tell the hon. Gentleman and the House that I am not responsible for the voting intentions of any party in this House. That is a matter for the various Chief Whips. I have quite enough to do without troubling myself with these matters.

I noted during the course of our debates on the Budget that the case against the 5p increase was not made overwhelmingly by the Opposition Front Bench.

Mr. Rost

If, as the Chancellor claims, one of the main objectives of the increased petrol tax is to conserve energy, would it not have been more sensible to introduce a variable road fund licence tax on the basis of the American system, with a reduction for the more economical, smaller vehicles?

Mr. Barnett

The hon. Gentleman will not be surprised to know that we looked at the possibility of a variable vehicle excise duty as have, I imagine, many other Governments since it was removed in 1948. There are strong arguments against a variable vehicle excise duty, which I am sure the hon. Gentleman will have read—although perhaps if he had, he might not have asked about it.

Mr. Ronald Atkins

Does not my right hon. Friend agree that a variable vehicle excise duty would not be related in any way to mileage? That is far more important in the conservation of energy than the weight of the vehicle.

Mr. Barnett

I agree with my hon. Friend. The increase on petrol affects larger cars that do fewer miles to the gallon. It is true that, in terms of energy conservation, an increase in the price of petrol will almost certainly have a greater effect than a variable vehicle excise duty.