HC Deb 21 February 1979 vol 963 cc404-6
8. Mr. Newton

asked the Secretary of State for Transport if he will make a statement on his progress in consultations about his proposals concerning the future of vehicle excise duty.

17. Mr. Richard Page

asked the Secretary of State for Transport what further representations he has received on the proposed abolition of vehicle excise duty.

30. Mr. Charles Irving

asked the Secretary of State for Transport what further representations he has received on the proposed abolition of vehicle excise duty.

Mr. Horam

We issued a discussion paper earlier this month on the timing of the change; I hope to have comments shortly.

Mr. Newton

In view of what has happened in Iran and the possible consequences for petrol prices arising from other factors, is the Minister as confident as he was last year when this paper was first published that this is a sensible policy?

Mr. Horam

In many respects, events have rather reinforced the conservation aspect of the policy. If we are to live in a world of unforeseeable shortages, the sooner we get to a rational policy on this, the better. I think that that has the support of both sides of the House.

Mr. Page

Does the Minister accept the concern felt in some rural districts about the possible cost of these proposals, and will he carry out a full evaluation of those concerns before proceeding further?

Mr. Horam

I accept that we should evaluate carefully what will happen in the rural areas as a result of this change. I must repeat to the House a point which has been made before, namely, that the majority of rural private motorists will gain from this change. In any case, the change will be very small in its total effect.

Mr. Irving

How does the Minister propose to assist the disabled, whose vehicle licence tax is already remitted?

Mr. Horam

That is one of the subjects that we shall consider during our consultations, although it is fair to say that the disabled have an advantage now over the rest of the community.

Mr. Ashton

Is my hon. Friend aware that Bassetlaw is a rural area and that his proposals in general have been welcomed by working-class people in the area who run old bangers to get to work rather than Jaguars such as those owned by Opposition Members, and who very much prefer to pay the road tax weekly rather than every four months or once a year, because that is all they can afford?

Mr. Horam

I could not have put it better.

Mr. Ronald Atkins

Does my hon. Friend agree that his proposals are much fairer than the present system, will conserve petrol, and will lead to a large reduction in the kind of Government expenditure which the Opposition are always demanding?

Mr. Horam

I am glad to have my hon. Friend's distinguished support in these matters.

Mr. Grimond

Is the Minister aware that these proposals were popular in many parts of my constituency but that since then, as has been pointed out already, we have had the trouble in Iran and strikes, and petrol is already 10p per gallon more in my constituency than it is in the South of England? Will he make that known to the Chancellor of the Exchequer and also consider whether this is a matter that the Price Commission might examine?

Mr. Horam

The right hon. Member makes a very interesting point. The differential in the prices of petrol sold in rural and urban areas is a matter of legitimate concern.

Mr. Moate

Does the Minister accept that there are rumours that petrol will cost £1 a gallon, and sooner in some areas than in others, and that his proposals will make petrol, even in current terms, £1.20 a gallon, plus perhaps an annual registration tax at a level which is still a Government secret? Does he recognise that this will impose an unacceptable burden on many motorists, especially in rural areas, where people depend on their own transport to get to and from work?

Mr. Horam

I do not agree with the hon. Gentleman. People in rural areas will be saving the £50 vehicle excise duty. This has a considerable advantage not only for the person who does a reasonable mileage but also in the sense that it is easier to buy a car in the first instance and keep it on the road with that much less to pay. Therefore, on balance the rural motorist will gain, not lose.