Motoring Fuel Costs

Debate between Robert Halfon and Susan Elan Jones

Tuesday 14th June 2011 Westminster Hall

[Robert Halfon]

That is my whole point. High fuel prices have become part of the poverty trap, and are a disincentive for people to get back into work, despite the Government’s excellent programmes, including the Work programme. I thank my hon. Friend for raising the matter.

Long-term stats from the Department of Energy and Climate Change show that in 1970 we used 25 million tonnes of petroleum in the transport sector. That has risen year on year, and doubled to 50 million tonnes today. But despite the UK being a net exporter of petroleum products, and despite the fall in the international oil price, our petrol prices are still sky high. In January this year, members of the Federation of Small Businesses said that if petrol prices continue to rise, 62% will be forced to increase their prices, risking inflation; one in 10 may have to lay off staff; 26% will be forced to freeze wages; 36% will have to reduce investment in new products and services; and 78% will see

“their overall profitability in jeopardy”.

Taxation is only part of the problem, and another major concern is transparency. As the AA, RAC, and FairFuelUK have said, if the 2p drop in the market cost of petrol had been passed on to motorists earlier this year by energy companies, it would have wiped out most of the impact of the 2.5p VAT rise. In May, I wrote to the chief executives of Shell, BP, Total, and ExxonMobil asking for price transparency so that we can see why prices are not falling. So far, only Total and BP have replied, but their replies essentially said, “Nothing to see here.”

In 2009, before the disaster in the gulf of Mexico, BP boasted profits of £8.7 billion. This year, Shell has reported first quarter profits up 40%, making its global profits nearly £2 million every hour.

[Susan Elan Jones (Clwyd South) (Lab)]

I thank the hon. Gentleman for giving way again, and for securing this debate. I particularly support the points made about rural constituencies. Does he favour statutory obligations on those companies to be transparent and to pass on their profits to consumers?

[Robert Halfon]

I do not want to unveil all my secrets at once, and if the hon. Lady waits a bit, I will give her my proposal.

Total’s profit rose 34% year on year, and ExxonMobil saw a 69% profit jump to $10.5 billion. We must acknowledge that some companies make a good return for pension funds, but a balance must be struck. I remember the fuel protests in 2000, when we were seriously concerned about the threat of petrol at 80p a litre. According to PetrolPrices.com, the excellent price comparison website, the most expensive unleaded fuel in the UK is now £1.51 a litre.

I accept that 64% of the petrol price is taxation, and I welcome the Chancellor’s steps to slash some of the planned taxes, but the big oil companies must play their part. Why are prices so different at petrol stations, and why are they raking in such astronomical profits when small businesses are being forced into bankruptcy by fuel costs?

Police Grant Report

Debate between Robert Halfon and Susan Elan Jones

Wednesday 14th July 2010 Commons Chamber

[Robert Halfon (Harlow) (Con)]

As part of the effort to reduce the £900 billion of public debt, Essex police authority’s budget is being cut in this financial year. Mr Barker-McCardle, the Essex chief inspector, has said that it is his

“absolute priority to sustain front-line operational…services”.

Essex police have made efficiencies of 25% in four years and spend just £153 per capita on policing each year, compared with £175 elsewhere. Given the force’s track record of shrinking back-office costs, the Essex chief constable has said that he is

“optimistic that we can tackle a £2.6 million cut without taking police officers off the street.”

Front-line policing is therefore safe in Harlow and in Essex, but there is a more substantial question: how can we deliver better policing, given our financial constraints? There are several strands to that thread, but I shall concentrate on just one.

If we transform special constables into a Territorial Army-type force, they could cover more policing duties and offer excellent value for money. That could be paid for by rebalancing our police forces over several years. For example, as natural churn and retirement thin the ranks of police community support officers, each PCSO could be replaced by two or three special constables, each on a TA-type stipend. That would increase a force’s overall capacity at times of crisis, as well as save money. It would also do a huge amount to boost retention among specials, who are very expensive to train, recruit and equip. Specials make up a genuinely local force, like neighbourhood watch, and offer an invaluable source of community intelligence.

For the past six years, Essex police authority has been working in harmony and partnership with the Conservative county council and Kent police authority. During that time, Essex’s specials force has doubled from 350 officers to nearly 700. That is a credit to Essex police authority and the brave volunteers who serve the public as specials, often in hazardous conditions. We need to build on that solid base by incentivising specials to work more hours and develop professionally.

[Susan Elan Jones (Clwyd South) (Lab)]

I greatly value “two for the price of one” in my local supermarket, but does the hon. Gentleman really think that that is appropriate when dealing with crime, policing, and law and order?

[Robert Halfon]

I absolutely believe that a larger number of specials would help our front-line policing considerably.

I accept that I am setting out the embryo of an idea and that the proposal’s costs and benefits would need rigorous assessment, but I think that it is worth exploring. In the context of unavoidable cuts to police grants, a better retention rate among special constables would save money. Specials also give communities a tough local police force with full powers. More specials would, like the TA, give us defence in depth at a time of crisis.

I must stress, however—I am sure that this will please the Minister—that I am not calling for more money to be spent. My proposal is about refocusing the resources that we already have. Sadly, this year’s £2.6 million cut to Essex policing is Labour’s legacy, but I am glad that Mr Barker-McCardle has said that it is his

“absolute priority to sustain front-line operational police services”.

If we want to deliver better policing with less money, we must enhance the special constables, because every time that we lose a special, we incur the cost of recruiting, training and equipping another, as well as losing their experience. The cuts are unavoidable and, of course, to be regretted, but they give us an opportunity to transform our police service with a focus on value for money. As part of that process, I hope that we will consider enhancing special constables.