Monday 19th May 2008

WEIR BACKS BUSINESS CALLS FOR ACTION ON FUEL COSTS

Angus MP Mike Weir, has backed separate demands by the Scottish Chambers of Commerce and the Federation of Small Business (FSB) for the Treasury to use the massive oil tax windfall to provide relief from high prices at the pumps.

Scottish Chambers of Commerce have demanded that the Chancellor abandon his planned fuel duty increase after the Treasury received a windfall of £505 million from higher than predicted North Sea oil revenues since 1 April.

Meanwhile the FSB have also called on the Chancellor to scrap the October increase, and share the oil windfall with hard pressed motorists.

The SNP will again be pressing for a Fuel Duty Regulator in proposals the House of Commons next month. Commenting on the move Mr Weir said

“In just six weeks the Treasury has coined in a windfall in excess of half a billion pounds, while hard pressed motorists are reeling from the price at the pumps.

“The Westminster Government cannot ignore the chorus of demands for fair play on fuel prices.

“Although the government cite Green issues for the rise in prices, they are simply ignoring the different needs of rural and urban areas. I have consistently argued that we cannot have a one size fits all policy. If the government use price to try and control consumption they must take account of the particular problems of rural areas like Angus. There is absolutely nothing green in putting more pressure on rural communities. There is no alternative to road haulage for very many communities and that must be recognised”

"I welcome the intervention by the FSB and Chamber of Commerce, but we should not have to wait on the whim of the Chancellor for a freeze on duty rates.

“The SNP’s proposal for a fuel duty regulator would provide the protection motorists need from rising oil prices, and see any extra cash raised from VAT on higher pump prices go straight back into an equivalent cut in fuel duty, helping motorists living in remote rural communities and the hard pressed haulage industry.”