16/11/2011

MPs Plead For No Increase At Petrol Pumps

The Westminster Government should scrap a planned increase in fuel duty, a Conservative MP has said - with support from local politicians as well.

Yesterday, Robert Halfon said they must show it is one "that cuts taxes for millions of British people and not just for millionaires" and tabled a Commons motion urging action on fuel prices in response to an e-petition signed by 110,000 people.

It was approved by MPs without a vote but it is not binding on ministers.

The move comes after Treasury Minister Chloe Smith said the government was listening to people's concerns but "now was not the time" to change duty rates as such decisions must wait for the Budget.

There are plans to increase fuel duty by 3p a litre in January - meaning an extra £1.50 to fill an average car - and Chancellor George Osborne is under pressure to scrap that as part of his autumn statement on the economy later this month.

The DUP Deputy Leader Nigel Dodds has also called upon the Government to act on high fuel costs, which affect motorists right across the United Kingdom.

However during the Commons debate on the cost of fuel, the North Belfast MP pointed to the situation in Northern Ireland where people are faced with the "triple whammy" of high petrol and diesel costs on top of the highest car insurance costs in the UK and home energy prices above those in other regions.

Speaking from Westminster Mr Dodds said: "Rising fuel costs are of major concern to people right across the United Kingdom and regularly tops the list of issues causing concern to people during these difficult economic times.

"Every household in the country is paying an average of £677 per year on the fuel duty element but for the poorest 20% of our society this represents twice as large a proportion of their income as for the richest 20% therefore it is the most vulnerable who are hit the hardest.

"Younger people and rural dwellers are also affected disproportionately right across the United Kingdom, but Northern Ireland as a region is worst off," he added.

"Fuel prices surveyed by the AA in October placed Northern Ireland at the top of the list for fuel prices of any UK region, and combined with car insurance costs which are 83% above other parts of the UK and the high cost of home energy this means people in Northern Ireland are being hit with a fuel 'triple whammy'.

"Northern Ireland's land border with the Republic of Ireland is also a factor, not just locally but nationally with lower prices across the border costing the Exchequer between £200-£300m per year in lost revenue.

"It is for that reason that the Government at Westminster should immediately move to extend the fuel price pilot to Northern Ireland as this would not only assist motorists, but would actually increase the tax take going to HM Treasury.

"Similarly the Government must ensure that they do not proceed with the planned increases in fuel duty which will only heap further misery upon already beleaguered budgets. The high cost of fuel is not only hitting households, but also hindering business with no sector hit more than our haulage industry."

The DUP MP also said that people are appalled at the large oil companies such as BP who could recently announce profits of £3.2billion whilst ordinary people struggle.

Similarly the large supermarkets have questions to answer about how they can justify their petrol stations in different towns across the Province charging a different price for the same fuel.

"This debate in the House of Commons was backed by a petition containing more than 100,000 signatures, demonstrating clearly the impact this issue has on every community right across the country.

"If the Government acts as it should then the relief will be felt right across the UK, but nowhere more than in Northern Ireland," he concluded.

(BMcC/GK)

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