Jim Shannon
Main Page: Jim Shannon (Democratic Unionist Party - Strangford)Department Debates - View all Jim Shannon's debates with the HM Treasury
Petrol and Diesel
Jim Shannon Excerpts(12 years, 7 months ago)
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Robert Halfon
I thank my hon. Friend for his remarks. That matter is an important part of my argument.
On the August rise, the Automobile Association says that a 3p rise in petrol prices will switch £1.8 million a day out of the economy and into petrol costs, draining money away from high streets. At the same time, a report by the respected Centre for Economics and Business Research shows that cutting duty by 2.5p would create 175,000 new jobs. The RAC Foundation and the Institute for Fiscal Studies—both very respected—show that revenues from motoring taxes are set to collapse by between £10 billion and £13 billion a year over the next decade, as people are driven off the roads by economising on fuel. That is why I urge the Government to think again.
Jim Shannon (Strangford) (DUP)
I congratulate the hon. Gentleman on the very good campaign that he has carried out on this issue. We all appreciate it. With our fuel costs rising and it costing more to fill a car or heat a home than to buy groceries, does the hon. Gentleman feel that now is the time for a windfall tax on the oil companies that are making exorbitant profits?
Robert Halfon
Yes, and I thank the hon. Gentleman for his incredible support all through this argument. I recognise that there is no magic money tree, so to cut prices at the pump the Government need seriously to consider another windfall tax on the oil companies, not necessarily on North sea production but on the companies as a whole.
Not enough emphasis is put on my second point which, as my hon. Friend the Member for Hexham (Guy Opperman) says, is that we need competitiveness in the oil market. Not only the Government but businesses and the oil companies have a responsibility. There are four complaints. The first is that pump prices are always quick to rise, but that it feels as though a court order is needed to get them down. Evidence shows that from May to August 2011, oil prices fell by about 5.5%, adjusting for exchange rates, but petrol and diesel prices stayed high, falling by only 1.5%.
The second complaint—the debate comes in the wake of this—is about the OFT’s interim decision not to investigate the UK oil market, despite a dossier of evidence from Brian Madderson, who represents the UK’s independent forecourts, which shows that British motorists are being fleeced and that oil firms active in the UK are under formal investigation by the Federal Cartel Office in Germany as a result of similar complaints.