§ 1. Mr. GregoryTo ask the Chancellor of the Exchequer what is the anticipated excise revenue on unleaded petrol for the current year; and if he will make a statement.
§ The Economic Secretary to the Treasury (Mr. Peter Lilley)The excise duty revenue on unleaded petrol will be about £665 million in 1989–90.
§ Mr. GregoryNow that the Chancellor has increased the tax differential between leaded and unleaded petrol to 14p per gallon, which I understand is the second highest in the EC after Denmark, does my hon. Friend agree that petroleum companies should extend the availability of unleaded petrol so that more motorists can do the green thing and support the Government?
§ Mr. LilleyMy hon. Friend is correct when he says that our differential is now greater than that of any country apart from Denmark. Because of the additional changes that we made in the Budget affecting the price of two-star petrol, an even greater number of filling stations are transferring pumps and storage capacity from two-star and three-star petrol to unleaded petrol, and the response so far is encouraging.
§ Mr. Frank FieldWhy have the Government found it necessary to rig the free market in favour of unleaded petrol? Would it be right for voters to draw from that a conclusion that on the growing agenda of environmental issues an untrammelled free market does not serve the best long-term interests of mankind?
§ Mr. LilleyWe have never believed that environmental considerations are best met by an untrammelled free market. We have always been prepared to introduce incentives, as we have done here, to encourage a better environment. By and large the measures announced by my right hon. Friend the Chancellor in the Budget have been warmly welcomed by all those concerned about the environment.