Farming News - Implications of fuel duty debate in Parliament

Implications of fuel duty debate in Parliament

David Cameron is today facing a fresh backbench revolt by Conservative MPs over rising fuel prices. The fuel duty rises, planned for next year, could have a devastating effect on the farming industry, according to industry representatives. Union officials from the Farmers’ Union of Wales have encouraged farmers to lobby their MPs over the upcoming motion.

 

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MPs today voted on a backbench motion calling for a ‘price stabilisation mechanism’ to operate alongside Chancellor George Osborne’s fair fuel stabiliser introduced in the Budget. The motion was tabled in response to an e-petition signed by more than 100,000 people and is supported by more than 100 MPs.

 

FUW union members yesterday had the opportunity to voice their concerns over plans to put up fuel duty in January and August next year when they met with Ceredigion MP Mark Williams ahead of the debate.

 

Executive officer Adrian Evans said, "These rises will add 7.3p per litre or 33p per gallon to the already massive cost of petrol and diesel. Fuel price rises of this nature could have a devastating result for farmers and all the rural communities in general as a car is essential in the countryside with public transport being so poor."

 

FUW president Emyr Jones said, "We have regularly highlighted the need for an equitable system that reflects the unique needs of rural Wales yet in recent years we have seen the most significant rises in fuel prices in history. Nowhere have these rises impacted more than in rural Wales where the majority of domestic journeys must be made by car and businesses, particularly farm businesses, rely significantly upon diesel vehicles. Our members believe that a system which recognises the disproportionate level of fuel tax paid in rural areas should be introduced, possibly in the form of a tax rebate for rural dwellers."

 

 

Shrewsbury and Atcham MP Daniel Kawczynski joined calls for a discount on the price rural residents have to pay for fuel. Kawczynski said he wants more consideration to be accorded to drivers in remote rural areas such as his constituency in Shropshire.

 

He said, "Rural parts of England are very different to the situation in London. In London we have Tubes, buses and trains. But in rural Shropshire there are few alternative forms of transport."

 

However, there have been strong reactions to this viewpoint. Alternative transport campaigners say over reliance on cars and increasing individualisation since the 1980s has led to a reduction in public transport. Speaking to the BBC this morning, Richard Hebditch of the Campaign for Better Transport said the "big problem" is that Britons are too reliant on their cars, which run on "quite risky oil supplies".

 

He said, "What we need to do is take the money from fuel duty and invest it in giving people real alternatives and modernising our transport systems."

 

Sustainable transport charity Sustrans echoed the calls made by the Campaign for Better Transport. The charity pointed out that, with train fares due to rise by an average of 8 per cent from 1st January, bus subsidies facing substantial reductions and low spending on walking and cycling projects, scrapping the increase could create a divide between those who can afford to travel in the countryside and those who cannot.

 

Sustrans’ Policy Director, Jason Torrance, said, "Those calling for a cut in fuel duty need to be honest about what else the government should cut and how much train and bus fares should increase to be able to afford a reduction in fuel. The Chancellor should stick to his guns, and invest the extra money into public transport and walking and cycling schemes that everyone can benefit from. With oil reserves in decline, and the Middle East increasingly volatile, it is time for a transport policy that weans us off our oil dependence."