Fuel Costs Debate

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Department: HM Treasury
Monday 7th February 2011

(13 years, 9 months ago)

Commons Chamber
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Stewart Hosie Portrait Stewart Hosie
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My hon. Friend is right, and I am sure that hon. Members throughout the House will have examples of infrastructure that used to exist, but is no longer there, with the result that 100% dependence on roads is now the case.

Hywel Williams Portrait Hywel Williams (Arfon) (PC)
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Does my hon. Friend accept that the high prices also affect rural businesses, where petrol, diesel and other goods, such as groceries, are sold? Those businesses are hit by not only the price rise in fuel, but the cost of carrying goods to their shops. That is a dreadful burden for businesses in rural communities.

Stewart Hosie Portrait Stewart Hosie
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That is absolutely right. The price is hugely inflationary in rural areas. It is also a problem in some of the poorer parts of our cities, where car ownership is remarkably low. It means that some people with modest means do not even have the ability to travel to a supermarket, where there may be discounted goods. Instead, they are forced to pay higher prices in certain urban centres. That should not happen.

--- Later in debate ---
Stewart Hosie Portrait Stewart Hosie
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I have not seen that report, but those developments will clearly make things difficult in areas that depend on those subsidies. I hope, in the light of the price of fuel, that local authorities and the Government will try to ensure that as many bus services as possible, particularly lifeline services, are maintained. The key point about living in remote and rural areas is that there are fewer alternatives available, and in some cases, no alternatives at all. The use of a car in those areas is vital.

Hywel Williams Portrait Hywel Williams
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The lowest wages in Wales are in Powys, in the middle of Wales. Powys also has the highest incidence of car ownership, with many families having to run two cars because of the lack of public transport.

Stewart Hosie Portrait Stewart Hosie
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My hon. Friend touches on an important point. It has been mentioned already that car ownership is normally a sign of wealth and affluence, but in remote, rural and sparsely populated areas, people on almost every level of income, including those on low and modest wages, require a car. That results in their spending a disproportionate amount of their net disposable income on fuel.