HL Deb 28 April 1954 vol 187 cc105-6

2.36 p.m.

LORD TEYNHAM

My Lords, I beg to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether their attention has been drawn to the present position with regard to the tax on heavy hydrocarbon fuel oils, whereby road transport users of this fuel incur a duty of 2s. 6d. per gallon, while the same fuel when used by their competitors, the Transport Commission, for railway traction, which is growing in importance, is entirely exempt from duty; and whether they have any proposals for remedying this apparently inequitable situation.]

THE PAYMASTER GENERAL (THE EARL OF SELKIRK)

My Lords, Her Majesty's Government are aware that the British Transport Commission has recently announced plans to extend the use of trains running on diesel fuel. They do not, however, regard these proposals as likely to cause damage to road transport interests such as might necessitate reconsideration of the existing fiscal position. The present position with regard to tax on heavy hydrocarbon fuels has existed since 1935. At that time diesel engines were beginning to be used in large numbers on the road. The result of this was that serious inroads were being made on the revenue drawn from light hydrocarbon oils. Accordingly it was found necessary to impose a duty on the heavy oils used in road transport on the same basis as light oils. This position has been maintained up to the present time.