Fuel Prices and the Cost of Living

Debate between Angus Brendan MacNeil and Andrew Turner

Wednesday 16th March 2011 Commons Chamber

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I am grateful for the opportunity to speak in this debate and convey the feelings of my constituents about fuel prices. In Na h-Eileanan an Iar—as the good Speaker himself would say and, of course, did say—we are paying the highest tax per litre in the UK; we are doing so consistently, at a range of fuel stations throughout the entire constituency. That has been the situation throughout the life of this Government and indeed the previous one. The last lot—the Labour Government—made excuses; this lot—the Tory and Liberal Government—are making promises. The upshot at the pumps in Ness, in Uig, in Back, in Stornoway, in Lochs, in Tarbert, Harris, in Lochmaddy, in Balivanich, in Creagorry, in Daliburgh and in Castlebay is the same; excuses and promises equal exactly the same.

The rural fuel derogation has been announced twice at Liberal Democrat conferences that have been six months apart, but there has still been no formal approach to the EU Commission. Can we be given an indication of how long it typically takes to get such a measure approved by the EU Commission, especially as it has given approvals in respect of far less rural areas in other places in Europe than the Hebrides and other Scottish islands?

[Mr Andrew Turner (Isle of Wight) (Con)]

I hope that the hon. Gentleman is not speaking only of Scottish islands, because the Isles of Scilly are included in this and I hope that the Isle of Wight will be too.

[Mr MacNeil]

As the hon. Gentleman knows, and as I have demonstrated in the past, I have great sympathy for the Isle of Wight and indeed for the Cornish Isles of Scilly, so I hope that this will extend to them as well.

May I suggest that the Government put in place a maximum percentage that can be taken at the pumps in taxation, or at the very least a desired percentage to be taken in taxation, just as the inflation rate seems to be a desired rate and a target for the country? I say that because in the UK 62% of the price of petrol is duty, which is the highest level in Europe—the lowest level in Europe is 46%. May I also ask the Government to examine the fuel distribution network, because many people have long had deep concerns about profiteering between refineries and retailers in what seems to be a very opaque business model? We have to ensure that any gains we make in the—so far promised—rural fuel derogation are felt at island pumps and are not snaffled away elsewhere.

We know what fuel tax is doing to people’s pockets on a daily basis up and down the land: it is affecting the poorest more, as this is a highly regressive tax. In areas such as mine, where wages are below the national average, the cost of living is higher and fuel poverty is high—my constituency has the highest in the land—the regressive nature of this tax is really felt. The tax pulls money out of the economy from families, businesses and individuals, and from local authority budgets and health board budgets. Clearly we need help and I ask the Government to provide it in tackling fuel tax and in taking the foot of high fuel tax off the neck of the islands’ economy.

When I last spoke in the House on this matter, on 7 February, I said—I have checked the Hansard record—that fuel was £1.44 a litre. My office in Stornoway tells me that it is now £1.48 a litre, and I shudder to think what it might be the next time I speak on this issue in the House, because the cost seems to be going in one direction. Before the staff at Benbecula airport correct me, yet again, on the price, I point out that the price in Uist will inevitably be higher. I understand that the price in Uist and Benbecula is more than £1.50 a litre. Consistently, throughout the length of my constituency, we are paying the highest fuel tax in the UK. The simple re-announcements of the intention to have a rural fuel derogation without any change coming at the island pumps are greeted with nausea by my constituents, who are tired of hearing pious words and are instead looking for pious actions.

Parliamentary Voting System and Constituencies Bill

Debate between Angus Brendan MacNeil and Andrew Turner

Tuesday 15th February 2011 Commons Chamber

[Mr Andrew Turner (Isle of Wight) (Con)]

I had a speech prepared to deliver today, but I do not think that I shall need it; I am using another.

Let us go over what happened. When I first heard of the proposals, I got together with the County Press, the island’s weekly paper, and Isle of Wight Radio, our local radio station, to see how “we” could fight “them”. It was energising to do that. We all met representatives from the island’s Labour party and Liberal Democrats—and, of course, the Conservatives—as well as the chamber of commerce, and the One Wight campaign was formed.

We appointed a non-political spokesman, Richard Priest, who has done an admirable job of fronting the campaign.

[Mr MacNeil]

I would just like to point out that there was some international support from the SNP.

[Mr Turner]

That is correct, but I would not use the word “international”.

Although opinion was divided on whether the ideal solution was for one or two MPs, we were united at the outset in the view that what was simply unacceptable was the notion of one and a half MPs, with one part of the island placed in an unholy alliance with a part of the mainland.

Eventually we all agreed that even if the island were to remain under-represented, that was a price worth paying. We got support from many places. Among many others, printing was done free of charge by Crossprint; Marc Morgan-Huws of the bus company Southern Vectis donated the use of the One Wight bus, which thousands of people signed, and Paul Bertie of World Leisure printed T-shirts for the campaigners. I would like to thank them all, as well as those whom I do not have time to mention. Everyone involved played a significant part.

My amendment was not debated in this Chamber and there was no vote, but I want to place on record my gratitude to the hon. Members from all parties who pledged their support for it. I like to think that we would have won if the opinion of the House had been tested. None the less, the Bill went to the other place unamended, and the island’s cause was taken up by Lord Fowler, who is a long-term resident of Seaview, on the island. His skilful management in the other place led to a significant victory and a majority of 74 in favour of keeping the Isle of Wight separate. He found support from all parties, as I did, for the island’s cause, in addition to considerable support from Cross Benchers.

I thank all the noble Lords and Ladies who supported the amendment, and I pay tribute to Lord Fowler. His many years of experience in this House and the other place stood him in good stead in fighting the island’s cause. The whole island owes him a debt of gratitude. I hope that Seaview residents, after short congratulations and celebrations, will permit him to return to a once-again peaceful island.

The fact that islanders were prepared to be under-represented added to the strength of our argument, but the Government were scrupulously fair, and once they accepted the case that we should be separate, they offered us, like the Scottish islanders, over-representation, which I welcomed.