Rural Communities

Mark Williams Excerpts

Tuesday 17th April 2012 Westminster Hall

[Sheryll Murray]

We certainly do. I happened to travel to the midlands at the weekend and the price of fuel in South East Cornwall was 10p per litre higher than in Bristol. I wrote a letter to the Chancellor last night, outlining my constituents’ worries about fuel prices. I said that I appreciated the terrible economic situation that the previous Government had left us in, and I fully understand that there is little room for manoeuvre. However, the fuel situation is getting worse and causing many of my constituents great hardship.

[Mr Mark Williams (Ceredigion) (LD)]

Has the hon. Lady reflected on the position of a lot of the smaller, independent, family-run filling stations? We are losing those stations by the hundreds every year, and in the process we often lose other valuable village facilities, such as a shop or post office, which are often incorporated in the business.

[Sheryll Murray]

The hon. Gentleman will accept that that is not a trend that has just begun under this Government. It started in the early 2000s, when we saw petrol stations in rural areas haemorrhage, which demonstrates that there was very little support for our rural communities under the last Government.

Public transport is weak in South East Cornwall; there are very few buses and there is little access to the railways. It is clear that the majority of the rural population drive, but it is also important to have some kind of alternative. Everyone has periods when they cannot drive, whether because of age, medical reasons or the car has broken down. Unlike in towns, where the local GP’s surgery can be a few hundred metres from someone’s home, in the country it can be a few miles away.

Similarly, in rural areas, train stations are often a great distance away from people’s homes and transport is needed to get to the station. So railways cannot be seen as a solution in their own right. However, we need to encourage people on to the railways and other forms of public transport. The train is often the best method for commuting to the cities, thus avoiding the congested roads that buses also travel along.

The March 2012 report, “Reforming our Railways: Putting the Customer First” said that the Government are allocating funding for additional capacity for people to commute to cities at peak times, including faster journey times, more frequent trains, more through-journeys, more reliable journeys and more cost-efficient journeys. I hope that the South West Trains franchise will make some of those improvements.

The lack of public transport and the increase in the price of fuel are major concerns for people in South East Cornwall. Wages in Cornwall are very low in relation to both the south-west as a whole and the rest of the country. In 2001, the average income per household in South East Cornwall was around £23,000. Since then, the figure has not changed significantly. Any increase in fuel prices is disproportionately felt in my constituency, as are increases to many other household bills. In my constituency, the average house price is around 10 times the average household income.

Transport is important in supporting our rural communities, and it has a knock-on effect on people’s standards of living. I am glad that the Government are committed to helping our rural poor. There are initiatives such as the Cott Yard community resource centre in St Neot in my constituency, where £330,000 was provided under the community and social enterprise, or CASE, initiative, which is a funding stream in Cornwall that was part of the rural development plan for England. That project is one such example of the Government helping rural areas. It provides rural workshops, a post office and a library run by volunteers, to deliver services in rural areas. Another such example is the fisheries local action group, or FLAG, initiative, whereby substantial funding is provided under the European fisheries fund. It has been enlarged to support coastal communities as a whole, extending out to one mile from the coast. I am really pleased that the Department for Environment, Food and Rural Affairs has introduced those initiatives, and long may they continue and be built on.

We all accept the economic legacy left by Labour’s maxing out of our credit cards, and I hope that the two examples that I have just given will be built on, so that we have faster positive changes to help our constituents living in rural areas.

--- Later in debate ---

[Roger Williams (Brecon and Radnorshire) (LD)]

It is a great pleasure to speak under your chairmanship, Mr Hood. I congratulate the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) on securing the debate. I have fond memories of his constituency. Back in 1999, I stood in the first Assembly elections and managed to come fifth. The good people of his constituency were not ready for me then, but I enjoyed the experience and the fantastic countryside there.

The hon. Member for Carmarthen West and South Pembrokeshire has made the topic of this conversation deliberately wide, and Members have taken advantage of that. I want to mention one or two issues that perhaps have not been covered. First, I congratulate the Department for Environment, Food and Rural Affairs on its determined efforts to eradicate bovine TB in this country, which I know are appreciated by the farming people here. They do not bear comparison, however, with what is happening in Wales, where the farmers are almost despairing about what can be done to alleviate their problems.

I want to talk a little about financial services in rural areas. I have recently had the honour of introducing two debates in this Chamber on the closure of banks in rural areas, which is an important issue because rural communities want to attract not only tourists but businesses, and without banking facilities that can be difficult. I think that not just in rural areas or in Wales but more widely, the relationship between small businesses and banks has never been at a lower ebb.

[Mr Mark Williams]

Will my hon. Friend also reflect on the banks’ usual retort when asked about the diminishing number of branches, which is that online banking is a growing occurrence? In some parts of our constituencies that is not a reality because we have no broadband at all, let alone the superfast type.

[Roger Williams]

I absolutely agree with my hon. Friend, and it is not only the absence of broadband. Sometimes, older people do not have the facility or the aptitude to take advantage of online banking, so we still need the face-to-face presence and advice that bank customers greatly value.

The issue also goes a little further. Today, I was sad to see that the number of complaints about banks made by small businesses to the Financial Ombudsman Service has gone up by 10% in the past year. It is only very small businesses that can use the ombudsman facility, so we have a number of such businesses being badly treated by their banks. For instance, not only are overdraft or loan requests turned down but the terms and conditions of such facilities are changed midway through. The Government once again need to sit down with the banks and say, “If we are all in this together and we are going for growth, you have to play your part.”

I think that the Government sometimes do not really understand the structure of business in this country. Whenever they trumpet support for business they talk about reducing corporation tax. That is much valued, but out of the nearly 4 million businesses in England only one third are incorporated, so the other two thirds will not benefit from the reduction in the tax, and the £100,000 reduction in capital allowances will particularly weigh on businesses that pay their tax through self-assessment—sole traders and partners.

On the role of independent filling stations, one operator in Sennybridge in my constituency has brought me evidence that the wholesale operation of the petrol supply chain is concentrated in a small number of hands, which could lead to difficulties with competition and access. He has sent information to the Office of Fair Trading, and I will send a copy to the Minister. This is a dangerous situation. Many of our independent filling stations have already closed, and if the process continues, a lot more could do so.

I am looking at the time, Mr Hood. The clock says that I have spoken for 11 minutes already, so I am not sure how much longer I have.