Fuel Prices

David Hamilton Excerpts

Tuesday 15th November 2011 Commons Chamber

[Fiona O'Donnell]

No I will not. The hon. Gentleman should sit down and listen to what I am going to say before being so eager to get to his feet. He should let me finish this point.

The Scottish Government could have re-regulated the buses so that we could have a service in East Lothian that meets the needs of my constituents, instead of meeting the party election funding of the SNP Government. They have not taken advantage of that option, so in East Lothian we have the double whammy of rising prices at the pumps and a poor local bus service that is being further cut by an SNP council.

[Mr David Hamilton (Midlothian) (Lab)]

As my hon. Friend’s neighbour in Midlothian, and given that 56% of our people travel to work in Edinburgh every day, may I say that bus availability is a really big issue? The re-regulation of bus services is key, but the only people who can do that are that lot over there on the SNP Benches.

[Fiona O'Donnell]

My hon. Friend and neighbour is absolutely right. The SNP should stop talking about what they want other people to do and which other powers they want and instead start using the powers they have.

--- Later in debate ---

[Sheila Gilmore]

We have had the experience of four years of a council tax freeze, which people no doubt think is a wonderful thing on one level, but which is presenting huge problems to voluntary organisations.

The other organisation that I wish to mention briefly is a social enterprise—a laundry service—operating in my constituency. It not only provides a valuable service but tries to be commercial and turn a profit so that it can reinvest. It employs many people with learning difficulties, for example, and provides them with valuable training. However, that laundry service goes round collecting sheets and towels and so on from hotels and other large organisations, which involves transporting them to and from the people contracting with it. That organisation, which will certainly not benefit from being able to reclaim VAT, for example, is struggling in this financial climate, yet it is an important organisation, because it provides not just a useful service but valuable employment opportunities for people who otherwise might not be able to get them. We cannot contemplate it ending.

[Mr David Hamilton]

I agree with my hon. Friend. Many people employed in the voluntary sector work across the city, but they do not have access to buses to enable them to do so, and therefore require vehicles. This issue has a direct effect on those workers, many of whom are part timers, and raises costs for them.

[Sheila Gilmore]

I wholly agree.

One of the fascinating things about this debate—I mentioned this in an intervention—is the rediscovery, it would appear throughout the House, of the fact that taxes on expenditure are indeed regressive. I would ask that this rediscovery be carried into the further debates that we will no doubt have on VAT, in the autumn statement and into the next Budget. We made the point over and over that the increase in VAT would particularly harm those on lower incomes. Some Government Members try to argue that it did not really do that, because richer people spend more and therefore pay more VAT. However, as a proportion of income and in terms of the effect on family income, it is indeed those who earn least who are affected. I am therefore pleased to see that we all apparently now agree on the regressive nature of such taxes.

Finally, we should not see this debate and our environmental ambitions as an “either/or”. We should not appear to be saying that we no longer want to make our country a greener place. We need to invest in green manufacturing industries, which will enable us to get out of this position. It is interesting that the motion refers to the tax take going down, which many people have simply put down to increased fuel costs. However, many other things could have reduced the tax take, such as fewer people working, fewer people paying tax and fewer people travelling, not just because of cost but because they do not have jobs to go to.

Again, this comes down to what we have said about the economy. If we let it run down and down, both demand and income to the Treasury will be reduced, and we will not cure the deficit, as is becoming increasingly obvious, as this Government are having to borrow more.