Fuel Prices

Andrew Selous Excerpts

Tuesday 15th November 2011 Commons Chamber

[Rosie Cooper]

In my constituency, to be forced to look for work within 9 miles is darn near impossible because there is no transport infrastructure.

[Andrew Selous (South West Bedfordshire) (Con)]

I think that the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) meant to say that it was 90 minutes, rather than 90 miles, which is quite a significant difference.

[Rosie Cooper]

Fine: my answer remains the same.

There are many rural communities in West Lancashire, and in those areas, public transport is almost non-existent. The main services in villages have closed down, so people have to travel to the main towns to shop, to go to the doctors or to go to work. They rely on their car to get about or, in the case of some older people, on the kindness of a friend to give them a lift. Yet again, if people cannot run their car because of costs, that has a negative effect on all aspects of their life. I am concerned about the impact on both the young and older people in rural communities, as they may become ever more isolated, making them more vulnerable. How do pensioners on a fixed income that has been stretched to the limit find the extra money to cope with further fuel increases?

Some people argue that a reduction in fuel duty and thus fuel prices would mean an increase in the number of journeys and carbon emissions. I absolutely understand that argument, which reflects the fact that there is a difficult balance between our desire to tackle climate change and enabling people to go about their daily business, go to work, support their family, and run their company. Simply pricing people out of their car is not a real solution, especially in areas such as West Lancashire, where there is no real alternative in place.

It strikes me that with a flatlining economy, rising unemployment and businesses unwilling to invest because of the current uncertainty, now is exactly the time for flexibility and common sense. People like those living in West Lancashire—hard-working families and local businesses employing people—are looking to the Government to help them out just a little. They want help to ease that burden, and it is probably the least they are owed, after broken promises to introduce a fuel duty stabiliser, a failure to scrap the planned fuel duty increase and a decision to increase VAT. It is time for social justice and fairness. It is time for the Government to listen and to act. People want them to do it, and to do it now.

--- Later in debate ---

[Andrew Selous (South West Bedfordshire) (Con)]

I, like others, warmly congratulate my hon. Friend the Member for Harlow (Robert Halfon) on bringing this important debate to the House today.

In my constituency the car is essential really to all my constituents. We have three market towns and 14 villages, and although the bus companies do valiantly they cannot serve all my constituents, many of whom have to commute a long way—for 90 minutes or even longer—out of my constituency to find regular work. When there were difficulties with the buses in villages such as Hockliffe and Eggington there was enormous upset, because many people in those areas find motoring so expensive.

In rural areas, on average only 10% of people do not have a car, because they are so necessary, and more than half of households need two cars to get their families around.

[Anne Marie Morris (Newton Abbot) (Con)]

Is my hon. Friend aware that in rural constituencies such as ours the cost of filling up at the petrol pump comes to 10% of the wages of an individual on the lowest income? That is an enormous amount, and does he agree that it puts a particular burden on those living in rural communities?

[Andrew Selous]

My hon. Friend is absolutely right: that adds insult to injury.

The huge disparity in petrol prices experienced by so many of our constituents is extremely difficult. In addition, the disparity between the price of diesel and unleaded petrol concerns me greatly. Diesel used to be more expensive. We then had parity, and now diesel has shot up again. It is apparent that we have an inadequate supply of UK refining capacity for diesel in this country. We have to import much of our diesel from Russia, which causes particular problems given that around half of all car sales are of diesel vehicles.

[Tessa Munt]

There is also the increase in prices for liquefied petroleum gas, which has gone up astronomically in the past few years.

[Andrew Selous]

My hon. Friend makes a good point, and I am glad that she has been able to get it on the record.

Of course, the Government are in a very difficult fiscal position because of the economic mismanagement we inherited. Every day we are still spending around £330 million more than our income, and these things are not easy for Treasury Ministers. In spite of that we have managed to reduce the cost of fuel by around 6p per gallon, which my hon. Friend the Member for Harlow said would equate to around £274 less spent on fuel per motorist in this Parliament. That is very welcome. Government Members are instinctive tax cutters, which is why we have set out plans to reduce corporation tax to the lowest rate in the G7 by the end of this Parliament. That is where our instincts lie, and my hon. Friend the Minister knows that.

In contrast to some of the other speakers today, I want to consider the future in relation to fuel prices and talk about how some of the new technologies will be able to help save our constituents money. On 10 May I held a debate in Westminster Hall, in response to which the Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker), told hon. Members that people who buy a Nissan Leaf would have an average reduction in their motoring costs of around £1,000 per year, and that there would be a payback on the total costs within seven years. He also sent me further information to show that the seven-year fuel costs of a Ford Focus are £6,827. For a Toyota Prius that figure is £4,034, and for a Nissan Leaf coming on sale next year, it is just £517. Some 48 other makes of electric vehicle will be available soon—for example, the Vauxhall Ampera and others. I am delighted that in my constituency, charging points for electric cars will be installed at Ashton square by the Grove theatre car park in Dunstable, and at the West street and Hockliffe street car parks in Leighton Buzzard.

We have rightly heard much about the problems faced by small businesses. We need to consider the use of biomethane for trucks and hydrogen fuel cell technology for buses and heavy vehicles. At Nagoya airport in Japan all the buses are powered by hydrogen fuel cells. We need to ensure that we develop a hydrogen refuelling network, as we are doing for electric vehicles. Our constituents will then be able to enjoy cheaper fuel.

We also need to look at what is happening internationally. In Israel and Denmark the Better Place company is engaged across the whole economy. On 1 November Mr van Erck of that company told a meeting of the Westminster Energy, Environment and Transport Forum, at which some hon. Members were also present, that within three years the best-selling vehicle would be electric. Not only can we have cheaper motoring for our constituents, but the UK is also on track for a sizeable share of what HSBC estimates to be a $677 billion market by 2020. That was mentioned by Michael Hurwitz, a director of the Government’s Office for Low Emission Vehicles on 1 November. Such a plan would stimulate the economy and create British jobs for British workers, as well as lower prices for our constituents.

The UK is in a race to design, manufacture and power cheaper low-carbon vehicles. We have a once in a lifetime opportunity to lead in this industry as we lead in Formula 1, with eight of the Formula 1 teams based in “motorsport valley" in the United Kingdom. Such a challenge will be good for our constituents’ pockets and good for the economy. I recommend to the Government that we power forward in this area, for the whole of the United Kingdom.