HC Deb 28 June 2000 vol 352 cc889-90
2. Mr. Humfrey Malins (Woking)

What recent discussions he has had with the First Secretary with regard to transport in Wales. [126694]

The Parliamentary Under-Secretary of State for Wales (Mr. David Hanson)

My right hon. Friend meets the First Secretary on a weekly basis, and transport issues are discussed regularly. I also discuss transport issues in my regular bilateral meeting with the Assembly Environment, Transport and Planning Secretary.

Mr. Malins

Under the present Government, the people of Wales and the rest of the United Kingdom have faced huge rises in the price of petrol—so much so that the price of a litre of petrol will soon reach £1. Do the Government realise the devastating effect that that is having on people who depend on the rural economy in Wales, with many people being forced off the roads by the Government's petrol pricing policy? Will the Minister please make representations to the Chancellor on that point?

Mr. Hanson

I welcome the hon. Gentleman to Welsh questions. I know of his Welsh antecedents, and of his keen interest in Welsh matters. He will be aware that the previous Conservative Government introduced the fuel duty escalator, and that it was this Government who ended it. It was announced in this year's Budget that, beyond the automatic increase in line with inflation, there would be no increase in fuel duties. It is important to remember that revenues from any increases that do take place in fuel duties will now go straight into a ring-fenced fund for improving public transport, and that Wales will get a share of that.

Mr. Richard Livsey (Brecon and Radnorshire)

With regard to public transport and especially to rail services, some of us had the opportunity yesterday to meet Railtrack representatives. That followed our meeting last week with representatives from Prism Rail, and it is clear from our discussions about an all-Wales rail franchise that investment depends on the effectiveness of the shadow Strategic Rail Authority in lobbying on behalf of the rail system in Wales. The fact that the shadow SRA has only one representative from Wales blunts the competitive edge when it comes to negotiating for investment in the Welsh rail system. What does the Minister intend to do about that?

Mr. Hanson

The hon. Gentleman will be aware that the matter has been discussed extensively. It is true that there is one Welsh representative among the 15 members of the shadow SRA, but that is on a par with the representation for Scotland. In terms of proportional population, it adequately represents Welsh interests. The Welsh Assembly was consulted on the appointment, and welcomed it.

Mr. Nigel Evans (Ribble Valley)

No Labour Member standing on the subject of petrol prices, Madam Speaker? It seems that none of them really care. In rural areas of Wales the car is not a luxury, yet the Government use taxation on petrol as a tool of rationing. In 1997, petrol cost 61.7p a litre: today, it costs 84.2p, and even more in some parts of Wales.

A report from the AA published yesterday shows that an increasing number of people are paying more in petrol taxes than in income taxes. I assume that that would include Prime Minister's chum Lord Levy but, for people on the breadline, petrol prices have hit crisis point. What discussions has the Minister had with the Chancellor of the Exchequer to explain to him the appalling effects on the economy of Wales of his stealth-tax policy?

Mr. Hanson

I would only ask, "Who introduced the fuel duty escalator?" It certainly was not this Government. We have reviewed the fuel duty escalator and have given a commitment that, beyond the automatic increase in line with inflation, there will be no increase in fuel duties. Moreover, money for public transport will be provided by the Government. That is in stark contrast to what happened under the Conservative Government. We discuss matters with my right hon. Friend the Chancellor on a regular basis, and I am pleased to say that there is more money for public transport in Wales as a result.

Mr. Evans

There is no consolation in that response for the hard-caned motorist in Wales. On top of the exorbitant petrol prices that they have to pay, motorists who use either of the two Severn bridges face the prospect of VAT being imposed, which would take the toll to about £5. That would hit tourism and the Welsh economy hard, so what representations is the Minister making to the Chancellor of the Exchequer and the Department of the Environment, Transport and the Regions to secure some protection against the wholesale fleecing of the motorist by the Government and the European Commission?

Mr. Hanson

I think we have adequately covered the fact that the previous Conservative Government introduced the fuel duty escalator, so I shall move on from that. The hon. Gentleman should know that the proposal to impose VAT on charges at toll bridges is at present subject to proceedings in the European Court. No decision is expected until 12 September 2000. The Government are looking at the matter and will discuss it in due course, when a decision is pending.