Dundee SNP

LABOUR’S HIGH FUEL TAX POLICY HINDERING ECONOMIC RECOVERY

INDUSTRY SUPPORT SNP REGULATOR PLAN

SNP Treasury spokesperson Stewart Hosie MP has called on Labour, Lib/Dem and Tory MPs to get behind an amendment to the Budget Finance Bill for the introduction of a fuel duty regulator to protect jobs in the transport industry and help motorists and businesses.

The proposal, which will go before the Commons tomorrow (Wednesday) would result in an automatic freeze on fuel duty increases as oil prices rise with a parallel reduction in duty to match the extra revenue from VAT from higher pump prices. The proposal is backed by the Road Haulage Association.

SNP Treasury spokesperson, Stewart Hosie MP, said:

“This amendment has what it takes to help protect jobs in the transport industry and help motorists and businesses, and I hope Scottish MPs of all parties will get behind these proposals.

“Hauliers, and motorists in rural areas, have been struggling with forecourt prices for some time, but the recession, and now Alistair Darling’s plans to increase fuel duty even further are the final straw.

“A road fuel regulator would see any extra cash raised from VAT on higher pump prices go straight back into an equivalent cut in fuel duty. It would give a real lifeline to Scotland’s hauliers who are unable to plan effectively for the future because they do not know what the price of fuel will be.”

SNP Westminster Transport spokesperson, Angus MacNeil MP, warned that a failure to take action would bring further job losses, and hinder economic recovery from recession.

Mr MacNeil said:

“Further increases in fuel prices would be disastrous in the grip of recession.

“The UK government should be easing the burden faced by business and households, and a fuel duty regulator mechanism would help do just that.

“Fuel duty hikes may temporarily boost empty Treasury coffers, but increases will actually hinder economic recovery.

“Hauliers and people in the Highlands and Islands have had their fill of Labour’s fuel duty increases. What Treasury Ministers in London forget is that for people in rural areas, a car is a necessity and not a luxury.

“It is more than ironic that Scotland, as one of world’s largest oil producers, is hardest hit by Labour’s irresponsible fuel duty increases.”

A spokesperson for the Road Haulage Association said:

“At this challenging time the last thing the haulage industry in Scotland needs is an increase in costs. Moreso now that the cabotage regulations have been relaxed making it easier for European hauliers with lower costs to compete in the UK domestic market with potentially dire consequences for Scottish and other GB hauliers.

“The case for a regulator is as strong now as it ever was – there may have been a short lull in fuel price turbulence but this won’t last. There are already signs that prices are on their way up again. At this desperate time for Scottish road hauliers – with numerous firms going bust – what is needed is a mechanism to ensure a measure of financial stability in these trying economic times. It must be remembered that fuel accounts for over 30% of a haulier’s operating costs.”

TAX FAIRNESS ESSENTIAL IN WAKE OF RECESSION AND CUTS

SNP amendments to the Finance Bill focussed on helping households, businesses and communities will be debated in the Commons tomorrow (Tuesday).

The amendments seek to: introduce a fuel duty regulator to protect jobs in the transport industry and help motorists and businesses; introduce a fair tax regime on alcohol – to protect jobs in the Whisky industry; and proposals to overturn the unfair taxation of licensed bingo clubs.

SNP Treasury spokesperson, Stewart Hosie MP, said:

“Together we must all work to protect jobs and invest in recovery in the wake of Labour’s bombshell Budget.

“These amendments are about helping households and businesses. In contrast, Labour has chosen to stab at the heart of crucial Scottish budgets. I hope Scottish MPs of all parties will get behind these sensible proposals.”

On proposals for a fuel duty regulator, Mr Hosie said:

“A road fuel regulator would see any extra cash raised from VAT on higher pump prices go straight back into an equivalent cut in fuel duty. It would give a real lifeline to Scotland’s hauliers who are unable to plan effectively for the future because they do not know what the price of fuel will be and prevent the rising food prices that come from increased fuel costs.

“Further increases in fuel prices would be disastrous in the grip of recession. Fuel duty hikes may temporarily boost empty Treasury coffers, but increases will actually hinder economic recovery.

“The UK government should be easing the burden faced by business and households, and a fuel duty regulator mechanism would help do just that.”

On demands for a fair deal on whisky taxation, Mr Hosie said:

“The UK Government is treating the whisky industry as a cash cow. Only last year Labour Ministers announced record 17% in duty hikes, and now the pain continues. The whisky sector is one of the country’s key industries and it is a disgrace that the UK Treasury is treating it so badly.

“Alcohol taxation should be fair taxation with minimum pricing ensuring that the drinks that damage our society such as cheap ciders and budget beers are no longer sold at pocket money prices.

On proposals for a fair deal on Bingo taxation, Mr Hosie said:

“There is widespread support for bringing down the rate of Bingo duty from 22 per cent to 15 percent in line with the tax rate for every other form of gambling. This is about fair play for one of the most popular pastimes enjoyed by people in all communities.”

LABOUR’S HIGH FUEL TAX POLICY HINDERING ECONOMIC RECOVERY

As the Office for National Statistics reveal that 15,255 HGV drivers claimed jobseekers allowance in March 2009, up from 3,280 the previous year, the SNP have tabled parliamentary proposals as an amendment to the Budget Finance Bill for the introduction of a fuel duty regulator to protect jobs in the transport industry and help motorists and businesses.

The proposal would result in an automatic freeze on fuel duty increases as oil prices rise with a parallel reduction in duty to match the extra revenue from VAT from higher pump prices. The proposal is backed by the Road Haulage Association.

SNP Treasury spokesperson, Stewart Hosie MP, said:

“This amendment has what it takes to help protect jobs in the haulage industry. Road haulage workers are losing their jobs more quickly than almost any other sector, and these appalling statistics must be a wake up call for Ministers.

“Hauliers, and motorists in rural areas, have been struggling with forecourt prices for some time, but the recession, and now Alistair Darling’s plans to increase fuel duty even further are the final straw.

“A road fuel regulator would see any extra cash raised from VAT on higher pump prices go straight back into an equivalent cut in fuel duty. It would give a real lifeline to Scotland’s hauliers who are unable to plan effectively for the future because they do not know what the price of fuel will be.”

SNP Westminster Transport spokesperson, Angus MacNeil MP, warned that a failure to take action would bring further job losses, and hinder economic recovery from recession.

Mr MacNeil said:

“Further increases in fuel prices would be disastrous in the grip of recession.

“The UK government should be easing the burden faced by business and households, and a fuel duty regulator mechanism would help do just that.

“Fuel duty hikes may temporarily boost empty Treasury coffers, but increases will actually hinder economic recovery.

“Hauliers and people in the Highlands and Islands have had their fill of Labour’s fuel duty increases. What Treasury Ministers in London forget is that for people in rural areas, a car is a necessity and not a luxury.

“Currently, fuel duty accounts for about 71 pence of every pound the motorist spends at the forecourt.

“It is more than ironic that Scotland, as one of world’s largest oil producers, is hardest hit by Labour’s irresponsible fuel duty increases.”

FIRST LABOUR, NOW THE TORIES, JOIN THE RACE TO CATCH UP WITH THE SNP

Commenting on the Shadow Chancellor’s announcement that a Conservative Government would seek to freeze the council tax, SNP Treasury Spokesman Stewart Hosie MP said:

“In a time of rising food and fuel bills, the SNP Government is doing everything in its power to make life easier for hardworking Scots: scrapping prescription charges, cutting or abolishing small business rates, and freezing the unfair council tax through a historic concordat with local government.

“The people of Scotland know that the SNP are on their side, and the London parties are struggling to catch up with us. We called for the planned road fuel tax increase to be wiped out, and Gordon Brown caved in under pressure in Glasgow East.

“Now, the Shadow Chancellor says he would freeze Council Tax. The SNP Government already has – just as we proposed a fuel duty regulator, which the Tories copied after refusing to vote for it in the House of Commons!

“Last week, the Prime Minister announced he would abolish prescription charges for certain patients, and have more flexible GP surgery opening times. The SNP Government has already introduced a policy to make prescription charges free for all, and over half of GP surgeries in Scotland already provide extended hours.

“The SNP Government is leading the way, and the London parties are falling over each other as they try to play catch up.”