§ 4. Mr. Eddie McGrady (South Down)What recent discussions he has had with the petrol retail industry in Northern Ireland concerning the level of tax on fuel; and if he will make a statement. [117374]
§ The Minister of State, Northern Ireland Office (Mr. Adam Ingram)Ministers and officials have maintained close contact with industry representatives and are fully aware of the impact of excise duties on Northern Ireland petrol retailers. In his recent Budget, my right hon. Friend the Chancellor of the Exchequer announced that apart from the automatic inflation rise of 2p per litre there will be no real terms increase in road fuel duties. Officials are in touch with Treasury colleagues to explore possible ways of ameliorating the situation.
§ Mr. McGradyI thank the Minister for that reply. I am sure that he agreed with his ministerial colleague who criticised Barclays bank for destroying the commercial heart of towns and villages, but that is what the fuel duty is doing to the rural communities of Northern Ireland. Would he again consider the scheme that was initiated by the Dutch and German Governments to 355 address their border problems caused by differentials in excise duties and levies? Will he at least introduce a de minimis scheme to alleviate the problem, which benefits only the racketeers, the smugglers and the paramilitaries and denies livelihoods to local people?
§ Mr. IngramThe Government do not minimise the impact of the issue on border communities. The scheme that was due to be applied on the Dutch-German border by the Dutch authorities was found to be inappropriate in terms of EU regulations. We considered it as a possibility for Northern Ireland, but if it is not deemed to be appropriate for the Dutch it would also be inappropriate for us to proceed with a similar scheme. I assure my hon. Friend that we will continue to consider how we can develop schemes that will tackle that difficult issue.