HL Deb 02 April 1957 vol 202 cc959-62

2.54 p.m.

EARL HOWE

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

[The Question was as follows:

To ask Her Majesty's Government whether they are aware that in the following countries petrol is now unrationed:—

Price per gallon.
Denmark 4s. 4d.—4s. 6d.
Belgium 4s. 4d.—4s. 6d.
Western Germany 4s. 11d.—5s. 5d.
Austria 4s. 1d.—4s. 8d.
Norway 4s. 6d.—4s. 9d.
Switzerland 4s. 4d.—4s. 11d.
Holland 4s. 1d.—4s. 4d.
Spain 4s. 11d.—5s. 10d.
while the price of rationed petrol in Britain is 5s. 7d. to 6s. 5d. per gallon; whether the reason for the continuance in rationing in Britain can be stated, having regard to the conditions in the foregoing countries; and whether any reason can be given for the artificial price charged to the British consumer; and whether it is not obvious that the conditions here must be purely artificial and inflationary in character.]

THE MINISTER OF POWER (LORD MILLS)

My Lords, Her Majesty's Government are aware that formal restrictions on the use of petrol no longer obtain in the countries referred to by the noble Earl. Each of these countries and the United Kingdom, under the agreed arrangements for pooling supplies of oil available to Europe, receives a fair share of supplies, and this remains less than normal requirements for the time of year. Each country decides in the light of its own internal conditions whether formal restrictions are required. In this country, as I informed your Lordships on March 19, Her Majesty's Government decided that while the supply position did not warrant an immediate removal of rationing, it did permit of an increased basic ration in the next rationing period. The price level was not a factor in this decision. The price in the United Kingdom is inflated by the temporary addition of 1s. a gallon for the Customs and Excise duties, the reasons for which were explained to your Lordships during the debate on petrol rationing on December 5, 1956.

2.56 p.m.

EARL HOWE

My Lords, may I ask the noble Lord whether he thinks that, in present circumstances, it really is not a dangerous thing to continue a system which involves this extra 1s. a gallon tax, which is purely inflationary in character? Does the noble Lord not agree that at some point or another, everything we use in our daily lives has to go on to the roads, and that the very fact of this extra 1s. a gallon inflates quite unnecessarily the cost of all those things? Cannot the noble Lord give us a real answer, an answer that any one of us can understand, with regard to the necessity for keeping on this additional 1s. a gallon? Does the noble Lord not agree that the same conditions apply in every country to which I have referred my Question?

LORD MILLS

I am grateful for the views of the noble Earl, and I will see that they are laid before my right honourable friend the Chancellor of the Exchequer.

LORD LUCAS OF CHILWORTH

My Lords, would the noble Lord, Lord Mills, not take into consideration that the feeling of the country is dead against the Government in this matter? And would he not take some cognisance of what the noble Earl has just said, to the effect that this is the only country to-day where the imposition of this extra 1s. is thought necessary? The noble Lord has just said that all the O.E.E.C. countries are getting their fair share of the petrol available. Is he not aware that this is the only country where there is petrol rationing at the present time? Would he not take into consideration that the Government are not bound to keep this extra 1s. on while petrol rationing is in vogue? They have undertaken that it will come off one month after rationing ends, but that does not mean that it cannot come off before. Does not the noble Lord realise that the country is getting incensed about what it thinks is rather a trick? One last question. The noble Lord knows as well as I do that the Government could increase the basic ration to-day. Would he not take into consideration the suggestion which I made to him when we last discussed this matter?

LORD MILLS

My Lords, I will give the suggestion the fullest consideration which it deserves.

LORD DERWENT

My Lords, may I ask the noble Lord this further question? I did not quite understand his reply to the first question of my noble friend Lord Howe. Does the noble Lord mean that the extra 1s. on petrol is not inflationary, or that it does not matter if it is inflationary?

LORD MILLS

My Lords, what I said in my reply was: The price in the United Kingdom is inflated by the temporary addition of 1s. a gallon for the Customs and Excise duties…. I think that that is a full reply to my noble friend.

LORD REA

My Lords, the noble Lord has referred this matter to his right honourable friend. May I ask whether he will be in a position to make a further statement in this House, or would he prefer that a further Question be put to him?

LORD MILLS

My Lords, I should be happy if a further Question is put to me on the subject—unless, indeed, some reply is made in another place in the meantime.

LORD LUCAS OF CHILWORTH

My Lords, would the noble Lord kindly acquaint the House who is his right honourable friend to whom the Minister of Power is going to refer this question?

LORD MILLS

My Lords, I said that I would refer the advice to my right honourable friend the Chancellor of the Exchequer.