§ 2. Sir Sydney Chapman (Chipping Barnet)What recent representations he has received from families on the level of taxation of petrol.[135949]
§ The Chief Secretary to the Treasury (Mr. Andrew Smith)The Government have received representations from many different organisations and groups as well as many letters from members of the public.
§ Sir Sydney ChapmanWill the Minister confirm that in the past two and a half years the Chancellor has increased the tax on petrol by more than a third? Is not yesterday's announcement an admission that he has been unfairly and grossly taxing motorists? Why was it that until yesterday Ministers were saying that any reduction in fuel taxes would put in jeopardy public spending and the economy?
§ Mr. SmithThe hon. Gentleman would do well to recall that the biggest increase in fuel duty, both in absolute terms and in percentage terms, happened under the Conservatives. Whereas they imposed the fuel duty escalator, we have removed it. Moreover, the measures announced and being consulted on in yesterday's PBR bring great help to those who have been most under pressure through high oil prices. We should hear from the Conservative party whether it will start supporting what we have done.
§ Mr. Andrew Miller (Ellesmere Port and Neston)May I inform my right hon. Friend of representations that I received from families living near the Stanlow oil refinery, who were afraid as a result of the risk posed to them by the physical blockade? May I also inform him of representations that I received from constituents of mine who manufacture cars, who said how pleased they were by the Budget provisions that reduce the cost of car ownership while maintaining sound environmental principles? Keep it up!
§ Mr. SmithI thank my hon. Friend for his comments and his help during the difficult situation at Stanlow. He and his constituents are right—yesterday's measures are a balanced response to public opinion and to the situation that we faced. They prove that the Government listen, and that we listen to all the people of this country—to the ordinary families who were not protesting and to those who were blockading oil refineries and conducting their protest in other ways. By listening, we have been able to introduce an affordable package that is consistent with financial discipline and sound public finances. It will bring help to motorists, help to hauliers and help to farmers in ways which are consistent with our environmental principles and which keep the economy on course for stable and sustainable growth.
§ Mr. Elfyn Llwyd (Meirionnydd Nant Conwy)Given that rural garages in Wales are closing down at an alarming rate and that no low-sulphur petrol is available there, how will the low-sulphur package help rural Wales?
§ Mr. SmithI hear what the hon. Gentleman says on behalf of his constituents, but low-sulphur petrol is widely available throughout the country. I did check, and during the first two weeks of October, no less than 30 per cent. of petrol sold was low sulphur. The whole point of the duty differential that we are introducing is to give people an incentive to switch to that petrol, and for that effort to be accompanied by proper branding, marketing and 425 promotion by oil companies. On that basis, we are satisfied that such petrol will be available everywhere next year, including, of course, rural Wales.
§ Mr. Lindsay Hoyle (Chorley)Following on from that point, can we ensure that supplies will reach garages in rural areas throughout the rest of the country, which are of concern to all hon. Members, and that we shall all reap the benefit of yesterday's welcome news?
§ Mr. SmithYes, indeed, and we are working with the oil companies precisely to that end. That effort will be reinforced by the duty differential, on which we are consulting.