Fuel Prices

Nia Griffith Excerpts

Tuesday 15th November 2011 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend agree that immediate action is required to stimulate economic growth, and that we need a Government who will respond to what is happening?

[Mr Brown]

We do need immediate action. As I have said, we will see nothing immediate this evening or in the next few weeks, but I hope for a positive response from the Treasury team in the statement that will be made later this month.

--- Later in debate ---

[Robert Flello]

Indeed. Every aspect of what we do is affected by the price of fuel, whether at the pumps, domestically, or at the heavy duty pumps that the haulage industry and other industries use. All sorts of other issues then come into play. For example, hauliers will be looking to ensure that their vehicles are running as efficiently as possible, yet on the European stage there is the possibility of a reduction in the height of trailers to 4 metres, which will have a negative impact on our haulage industry in the United Kingdom, exacerbate the problem of the price of fuel and increase the need for a cut in the fuel duty.

As has been said, a temporary VAT cut would be absolutely the right thing to do to secure an immediate impact for the domestic motorist, but something different is needed for the haulage industry in the longer term. A VAT cut would obviously have a wash-through effect, but we need a more serious change and a restructuring of the way the fuel costs of the industry and associated industries are met.

Other factors that impact on the haulage industry, such as London’s low emissions zone, also have a knock-on effect. I wish that Mayor Boris would respond to my letters and agree to meet to discuss the impact on the haulage and haulage recovery industries. It has a direct impact on fuel efficiency and keeping traffic moving on London’s streets if vehicles that should be on the streets helping to recover other vehicles and keep traffic flowing are prohibited from doing so. That will of course become a greater concern in the run-up to the Olympics.

Indeed, other aspects of the price of fuel will affect the membership organisations—I will not name them—that come out when their members break down by the side of the road, and those organisations’ costs are passed on to their members through the running costs of the yellow or orange vehicles that assist people at the roadside. That industry will also be hit by Green Flag’s terrible announcement that it is devastating the number of contractors who work for it. Some of them will unfortunately end up unemployed.

[Nia Griffith]

Does my hon. Friend recognise the real danger to haulage companies from foreign competition because of the price differentials?

[Robert Flello]

My hon. Friend makes her point well.

In the 20 seconds remaining, I wish to make two points. First, instead of cutting the top tax rate of 50p for high earners, we should be helping motorists. Secondly, we should be looking at ways of taxing the speculators and the people who are making a profit from the ordinary motorist and make them pay instead.