HC Deb 14 June 1984 vol 61 cc1058-9
8. Mr. Farr

asked the Chancellor of the Exchequer what information he has as to the total revenue raised in petrol and diesel tax from rural garages in 1983–84.

Mr. Hayhoe

As oil duty is collected at an earlier stage of distribution, I am afraid this information is not available.

Mr. Farr

Is my hon. Friend aware that garages in rural areas are a necessity these days, with the cessation of buses and trains? Will he consider the cost of licences needed to acquire and store petroleum spirit, because it is geared at the moment against the small user?

Mr. Hayhoe

I am well aware of the anxiety expressed by my hon. Friend about the need for garages in rural areas and the importance of taking into account the interests of the rural motorist. I shall consider the points that he has raised.

Mr. Kirkwood

I support the view expressed by the hon. Member for Harborough (Mr. Farr). I accept, however, that the Minister is correct when he says that it is difficult to find ways to support rural garages. Will he consider trying to persuade his right hon. Friend the Secretary of State for Trade and Industry to set up a rural development agency, which could have the ability to support some of the people who run distribution points?

Mr. Hayhoe

The hon. Gentleman is correct when he says that it is difficult to find some practical and sensible means to give relief to rural motorists. Higher petrol prices in remote areas reflect the economics of the market. I have been advised that recently rural fuel prices have tended to come more into line with those of urban areas. I believe that that will be welcome. As I said, I shall take into account the points made by my hon. Friend the Member for Harborough (Mr. Farr).

Mr. Bill Walker

While my hon. Friend is considering the problems of rural areas, will he bear in mind that in the highlands of Scotland there is a dearth not only of garages but of public transport, and that people living in those areas have no option but to use the private car to get to work? In addition, many of them work in areas where employers are notoriously low payers. Consequently, petrol tax is a penal tax on those employees.

Mr. Hayhoe

I am sure that all members of the Government will never be allowed to forget the interests of the rural communities in Scotland, particularly when they are so well represented by my hon. Friend.