Fuel Costs

Simon Hart Excerpts

Monday 7th February 2011 Commons Chamber

[Justine Greening]

We have yet to decide the exact scope of the pilots. I assume from her question that the hon. Lady would like her area to be included. No doubt she will write to me formally. I will take her comments on board. As I said, we are already working towards putting in place the pilots for a rural fuel duty rebate which will reduce the cost of fuel in the most remote areas of Britain. As with trying to tackle the feed-through of unpredictable oil prices to the pump prices, the previous Government rejected that outright, but the coalition Government are committed to getting it under way.

As my right hon. Friend the Chief Secretary announced in October, we wish to conduct a rural fuel duty pilot and look at how a rural fuel duty rebate could work in practice. We want to examine the underlying issues and see how that could be applied. The initial pilot could deliver a duty discount of up to 5p per litre on all petrol and diesel. That would save some drivers in rural areas upwards of £500 a year.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

As part of the derogation, will my hon. Friend please make sure that the definition of “rural” is a great deal more scientific than it has been in previous attempts? Will she also make sure that the interests of Wales are not left out?

[Justine Greening]

My hon. Friend makes a relevant point. One of the reasons that our initial discussions with the European Commission are so important is that they are an opportunity to scope properly any rural fuel duty rebate, why we would introduce it, where it would apply and the basis on which it would take place. In other countries, specific arguments have been made for the particular areas where such rebates were allowed by the European Commission. The benefit of going through the process, as we are doing, is that it maximises the chance that any proposal that we make will be given the go-ahead.

Equitable Life (Payments) Bill

Simon Hart Excerpts

Tuesday 14th September 2010 Commons Chamber

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

I think that several things have struck us during the course of this debate. First, we have heard about the sheer volume of decent people who seem to have been affected by this crisis over time. Then there is the well-measured, sensible and proportionate campaign organised by EMAG, which perhaps sometimes stands apart from those conducted by other pressure groups.

We have all been struck by the political reaction. For the sake of the record, the Conservative party was clear about its intentions in its manifesto, the coalition was clear about its intentions in its agreement, and the Government have been swift in their action. Whatever we may say about that action, they have at least been swift in putting their commitment in place as soon as they possibly could. Needless to say, there is a “but”, which is that the devil remains in the detail of the payments—and those are not under proper discussion tonight, for very good reasons.

Financial institutions, it seems, are no longer trusted. Young people do not know where to go and older people do not know who to trust, so it falls to all of us to ensure that confidence is restored. Resolving that problem was a moral dilemma, rather than a financial one, for the previous Government, and it is for the current Government too. EMAG has made a series of sensible proposals, rightly pointing out that a staggered system of repayments could work and that those in the greatest need should be considered separately from others. Even Equitable Life itself has made it quite clear what it expects a basic minimum to be.

The ombudsman has said that the level of compensation should reflect the state of the public finances. In this debate, a number of Members have raised one eyebrow, and some two, at that proposal, and I have a lot of sympathy with them. Equitable Life members across Britain all recognised that there was a risk attached to what they invested all those years ago. However, they will reasonably feel unfairly penalised if we use the public purse argument to bypass our moral obligations—especially, to be snide for a moment, when we are happily talking about spending a hundred million quid on a referendum on the alternative vote. Such things put us in a rather difficult situation when it comes to retaining the moral high ground. I agree entirely with my hon. Friend the Member for Mid Norfolk (George Freeman)—who, sadly, is no longer in his place—about the importance of the next stages of the process.

[Claire Perry (Devizes) (Con)]

I understand the pressure of time, but I wish to come in on that point. All of us are here for the debate because we signed a pledge and stood up for a group of people in our constituencies who we felt had been let down and betrayed by the last Administration. I urge the ministerial team to think creatively at a time of great pressure on the public finances, and particularly to consider making payments free of tax, or paid out from a fund over a period of time. The recommendations as proposed, or at least as trailed, are simply insufficient. We know that some of the best minds in the country are working in the Treasury, so let us get them to work on this very problem.

[Simon Hart]

That is a useful contribution. I was about to restate a point made by my hon. Friend the Member for Mid Norfolk, which reinforces the intervention by my hon. Friend the Member for Devizes (Claire Perry). The next stages are important not just for those who have struggled over the past 10 years and for the families of those who have died while waiting for justice, but for restoring the confidence of the current and future investors whom we are trying to persuade to act responsibly in their fiscal affairs. Perhaps what has not come up so much in the debate is that they are important also for the credibility of Members and of this Parliament. That was perhaps where my hon. Friend’s intervention was leading. We must not and cannot let people down now with a lame excuse about the state of the public finances today, because the problem goes far deeper than that.

A number of Members have quoted submissions from their constituents, and I should like to refer to an e-mail from Jerry Roberson of St Clears, in Carmarthen, a constituent of mine, who wrote:

“I’m afraid this business further undermines my confidence in politicians and if justice isn’t done on this issue I don’t see I will ever want to cast a vote in a General Election ever again.”

That is an important message, and we need to take it in isolation from the technical aspects of the debate. The very credibility of Members of all parties, of the Government and of this building depends on how we deal with such issues.

The Financial Secretary has made significant progress, and I support the Bill. The matter has been dealt with as quickly as it possibly could have been, and the suggestions by Opposition Members that a delay has somehow been deliberately imposed seem an absurd rewriting of history. I cannot understand how, in all conscience, they can make such observations, given what several thousand people and their families have been through as a consequence of an inactive decade. The Financial Secretary has made progress, and we should support him. I naively and optimistically suggest that it is the moral obligation of all parties and all Members to put our party political interests aside just for one moment, to ensure that we can bring the problem to a fair and sensible conclusion. The Government do not pretend that the Bill is anything other than the first part of that process.