Business and the Economy

Andrew George Excerpts

Monday 14th May 2012 Commons Chamber

[Vince Cable]

Bringing the two organisations together will in itself produce some efficiencies, but I cannot assure the hon. Gentleman that they will be protected from the efficiency savings that the rest of the public sector is having to undergo. We are confident, however, that with the reforms that we are undertaking, competition procedures will be faster, not slower.

The same concerns about competition underpin our decision to bring forward a separate Bill, establishing an independent groceries code adjudicator, which will protect suppliers—small firms and farmers—from unfair treatment. In doing so, we will support investment and innovation in the groceries supply chain, and support British food manufacturing and British farming. The measure has been welcomed by the Food and Drink Federation, the National Farmers Union and the Association of Convenience Stores.

The case of a highly concentrated industry buying from and selling to large numbers of suppliers and customers is a classic, economic textbook case in which intervention is needed to prevent monopoly profits. Retailers should not of course be prevented from securing the best deals and passing on the benefits to consumers, but equally retailers should be required to treat their suppliers fairly and lawfully. An independent adjudicator will ensure that the market is working in the best long-term interest of consumers. It will have the powers to intervene proactively and to name and shame offenders. In such a competitive market we consider that those powers will be an effective tool, but if it appears that they are not adequate, I, as Secretary of State, will be able to grant the adjudicator the power to impose financial penalties.

[Andrew George (St Ives) (LD)]

I must congratulate my right hon. Friend and the Government on bringing forward this important measure, which has all-party support. If supermarkets have nothing to hide, they have nothing to fear from the introduction of the adjudicator. Given that the OFT and the Competition Commission are due to merge, however, may I urge him to introduce the measure as quickly as possible so that the merger does not distract from the important job of getting on with the adjudication that is clearly necessary in the sector?

[Vince Cable]

May I first congratulate my hon. Friend, who I think was one of the prime movers behind the legislation and was very persistent in demanding it? Of course, I have no control over the parliamentary timetable, but given that the Bill is small and there is a consensus, it should go through very quickly.

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[Mr Bailey]

The figures my hon. Friend quotes are quite self-evidently a demonstration of the Government’s ridiculous priorities.

Let me turn to the green investment bank, which was Labour’s idea. It has been talked about for a very long time by this Government and now, two years later, we actually have it. However, it is inadequate, and unfortunately the Government have already introduced a series of policies on feed-in tariffs that will decimate many of the companies that would potentially have benefited from the green investment bank. Again, it is difficult to see how we will lift ourselves out of recession on the back of that.

There are certain measures that are welcome, such as the Groceries Code Adjudicator Bill. However, earlier I spoke about the slowness of implementation. Both the Select Committee on Environment, Food and Rural Affairs and the Select Committee on Business, Innovation and Skills, which I chair, examined the issue before the last summer recess, and we did so quickly at the request of the Government. The Bill could have been implemented last autumn or at the beginning of this year. Indeed, the parliamentary business over the last three months was hardly so crowded that such a quick and simple Bill that had received so much pre-legislative scrutiny could not have been introduced. Why is it being introduced only now?

[Andrew George]

Given that the hon. Gentleman is the Chair of a Select Committee and will want to be seen to be even-handed in this matter, does he agree that it was a great disappointment that the previous Government failed to act on the recommendations of the Competition Commission, which reported on 30 April 2008, and did not implement the measure during their time of office?

[Mr Bailey]

May I compliment the hon. Gentleman, who I know has been an ardent campaigner on this issue for many years? All credit to him for that. The measure was in the Labour party manifesto for implementation, and I am sure that it would have been implemented far more quickly, and perhaps more profoundly, than what is currently proposed.

I want to raise two issues about the measure, the first of which is fines. I welcome the Secretary of State’s comments about that, because our Committee recommended that there should be fines, not just a name-and-shame process. It would appear that he may be moving in that direction, although we will question him more closely on it. However, something that he did not mention was the ability of third parties such as trade associations to submit complaints. If individual companies or farmers have to make a complaint, they might fear discrimination. No doubt we shall tease out these issues during the Bill’s passage through Parliament.

I am most concerned about the missing elements from the Queen’s Speech. As a Labour and Co-operative party Member of Parliament, I am particularly concerned that, despite the Prime Minister’s trumpeting of his commitment to a co-operatives Bill, such a Bill is mysteriously missing. There is a degree of cynicism in the co-operative movement over the Government’s motives. They are keen to trumpet their commitment to co-operation when it is politically expedient to do so, but the absence of the Bill that the Prime Minister promised us during this parliamentary Session is bound to create a suspicion about their true commitment and motives in this regard.

The most astonishing omission of all from the Queen’s Speech was a Bill on higher education. My Committee carried out a long inquiry into this matter, and offered a raft of recommendations to the Government last November. To date, the Committee has not even had a reply to its recommendations. On two occasions, excuses have been given. The consultation on the White Paper ended in January, and we were told that further consultation was needed. We were also told that the matter would best be dealt with as part of an announcement of the Government’s policies in the Queen’s Speech in the new Session, yet the Queen’s Speech contained absolutely nothing about it. The inevitable suspicion is that there is such profound disagreement between the coalition partners on this subject that we shall have a White Paper and a consultation but no Bill on an issue of profound importance to hundreds of thousands, if not millions, of students in this country. This is also a serious matter in that higher education is one of the biggest export earners for this country. The omission of a Bill demonstrates a complete lack of consistency and commitment to it.

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[Andrew George (St Ives) (LD)]

It is a pleasure to follow the hon. Member for Llanelli (Nia Griffith). She highlighted the importance of the Groceries Code Adjudicator Bill in the Queen’s Speech, a measure for which I have campaigned for more than a decade, so its introduction is not before time.

In these debates, it is quite difficult to dig below the surface of party political point-scoring and mutual blame for the situation that the country finds itself in, but if we do, we find potential for a great deal more cross-party consensus of the sort that there has been on grocery market management—or, to put it better, fair dealing in the grocery supply chain. This is a Queen’s Speech for jobs and growth, but we cannot, simply by passing a law, decree that there shall be jobs, just as one cannot decree that the sun will shine. We need to create the conditions in which a free market is regulated appropriately—hopefully as lightly as possible—to enable that process to happen.

Regarding the groceries code adjudicator, let me set out why our current situation arose and why we need regulation. It is great that there are successful companies in this country, supermarkets foremost among them, but those who have followed what has gone on in that trade have found that, when it comes to the treatment of suppliers in the grocery supply chain, some supermarkets have moved from successfully using their market muscle to abusing it.

There were welcome reforms to the common agricultural policy in 2003, when the Labour Government helped to decouple support from production and moved to other forms of support. That meant that the agricultural industry had to be much more market- facing, but when it looked to the market, it found the supermarkets there, beating suppliers up all the time and retrospectively changing the conditions of supply after they had been agreed. In any case, on many occasions, the contract was verbal. There were problems to do with the introduction of promotional campaigns, which suppliers found themselves paying for; there was the issue of paying for shelf space; and there was late payment of bills, as well as many other overriders in supermarkets’ treatment of their suppliers. In my view, many of those problems persist.

In 1998—the debate goes back that far—my colleague, Colin Breed, then Member of Parliament for South East Cornwall, produced a report, “Checking out the Supermarkets: Competition in Retailing”. That resulted in the Competition Commission undertaking a report in 2000 that led to the first voluntary code of practice, but that code was pretty ineffective; suppliers never used it because of the climate of fear. The most recent Competition Commission report in 2008 resulted in the commission introducing, in 2010, the groceries supply code of practice—I have to correct the hon. Member for Llanelli; it was not the previous Government but the Competition Commission that did that. We want to make sure that contracts, and the relationship between producers and supermarkets, can succeed.

I chair the Grocery Market Action Group, which has members from the National Farmers Union, NFU Scotland, ActionAid, Friends of the Earth, and many other bodies such as the British Independent Fruit Growers Association, so I should declare an interest, though it is not a pecuniary one. It is simply part of my campaigning role to achieve the outcomes that we all want—the Bill has cross-party support.

The GSCOP is all very well, but it is like having the rules of rugby and no referee. That is why the adjudicator is required. The message I want to get across to the supermarkets is that if they have nothing to hide, they have nothing to fear from the proposed measure, and I urge them to embrace it. In fact, they could use it as a marketing tool that enables them to reassure their customers, who benefit from a good, healthy relationship between suppliers and retailers, that they engage in ethical, fair trading with all their suppliers.

One of the great benefits of the grocery code adjudicator proposed by the Government is that it will help customers. The proposal to allow third-party complaints is right and the reserve powers on fining are appropriate. I urge the Government to bring in the measure as quickly as possible.

Oral Answers to Questions

Andrew George Excerpts

Tuesday 24th April 2012 Commons Chamber

[Miss Smith]

The Treasury supports electricity market reform, as I think the hon. Gentleman knows. He will also know that we have also laid out our support for energy-intensive industries. I have no doubt that he will be able to direct questions about programming to the Leader of the House.

[Andrew George (St Ives) (LD)]

10. What steps he plans to take to ensure taxes owed are duly collected.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

HMRC has managed both to reduce debt levels and to help businesses through difficult economic times. It offers help to businesses that are in genuine difficulty, including through time-to-pay arrangements. Where appropriate, it is taking faster and firmer action against those who fail to engage with it. The amount of customer debt owed to the Exchequer decreased by about £2.4 billion between February 2011 and February 2012.

[Andrew George]

I am grateful to the Minister for that answer and I must congratulate the Government on their plans to close loopholes, particularly for the super-rich, including through the gift aid system. Will he ensure that the Government do not weaken their resolve in that regard, and ensure that gift aid genuinely goes to support charitable activities?

[Mr Hoban]

I am grateful to my hon. Friend for that support. He is absolutely right. I think that it is unfair that reliefs can be used without limit to reduce tax liabilities so that some taxpayers with very high incomes have very low tax rates, even below the basic rate.

Finance (No. 4) Bill

Andrew George Excerpts

Wednesday 18th April 2012 Commons Chamber

[Mr Stuart]

I am grateful to my hon. Friend.

[Andrew George (St Ives) (LD)]

I, too, have put my name to the new clause. Is the hon. Gentleman aware of the anomaly in areas such as mine where there is a planning restriction on occupancy where static caravans exist, making them ideal for people who want to use them for holiday homes? Under the measure, static bricks-and-mortar constructions will not be subject to the same level of taxation, so the measure will benefit those who can afford to have a second home and will therefore have an impact on the availability of housing for local people, whereas the presence of static caravans does not impact on the local community in the same way.

[Mr Stuart]

My hon. Friend is quite right. That is why the hon. Member for Ynys Môn (Albert Owen) has a fair point. Some people will be able to afford permanent housing, thereby further pressurising the housing market in areas where such housing is limited. Static caravan parks have been a perfect arrangement, because they allow both the local community and people from outside to benefit. They have meant that the local worker who is looking for a house—often someone who works at a caravan park—has been better able to find a house.

--- Later in debate ---

[Gordon Henderson]

I can only agree with that:

I accept that there is an argument for trying to address the current situation whereby some shops sell hot pies without charging VAT but others, such as my local chippy, have to charge VAT on the hot pies that they sell. However, the Government’s proposal is not an answer. Nor, sadly, is the Opposition’s new clause 1, which is why I cannot support it. I very much hope that the hon. Member for Pontypridd (Owen Smith) will withdraw it, and that he and his colleagues will support new clause 5, which I believe would achieve the Government’s objectives while protecting businesses such as that run by my friend.

[Andrew George]

I am pleased that the hon. Gentleman will be supporting new clause 5. As he knows, no one eats fish and chips cold, but a lot of people eat a good pasty cold. In fact, they are delicious cold. A lot of people go to the many pasty bakers in my constituency, buy pasties hot, take them home, put them in the freezer and use them later. The Government’s proposal clearly does not address that type of consumption.

[Gordon Henderson]

I am pleased that the hon. Gentleman agrees with me that the proposal is nonsense, but I want to move on to caravans, which are important to my constituency.

The Government’s proposal is allegedly to iron out an anomaly by ensuring that the sales of holiday and leisure caravans are taxed consistently at the standard rate, but once again, it simply creates another anomaly, which I will describe in a moment.

The proposal must be one of the most ill-conceived and badly thought out of all the proposals in this year’s Budget. We have been told consistently that the Government want to help coastal communities, which have become increasingly deprived over the past couple of decades, and which often have a higher level of unemployment than other areas. The Isle of Sheppey in my constituency is one such coastal community. As I have mentioned in the House on a number of occasions, unemployment on the Isle of Sheppey is among the highest in the south-east of England. The island took another knock earlier this year when Thamesteel went into administration. To give them their due, both the Department for Business, Innovation and Skills and the Department for Communities and Local Government have been working hard with my local authorities to find ways of mitigating the closure of Thamesteel by encouraging the growth of other industries, but one of those industries is the tourism and holiday industry, which has declined over the past 40 years, since its ’60s heyday.

In recent months, we have seen the green shoots of recovery in our local tourism scene, boosted in part by the decision of Swale borough council to allow many caravan parks to extend their operating periods from eight to 10 months of the year. That decision gave caravan park owners a real incentive to invest in and upgrade their parks, but success in the caravan holiday business is reliant on a good mix of park-owned caravans for hire and pitches for owner-occupiers. The sale of holiday caravans will be very badly hit if they incur VAT at 20%, and, in turn, the park-owned business will be hit because operators will have to increase their hire charges to balance their books, driving away even more much-needed visitors.

Let us not forget that those visitors are not wealthy people; in the main, they are working class people who strive for a better life by having their own holiday home here in Britain. In my view, the policy has been dreamt up by somebody who has never holidayed in a caravan park, has no idea of how the holiday park business operates and has no conception of the disastrous effect the policy will have on many coastal and rural communities.

It is deeply ironic that the Government are striving to give coastal communities help up the ladder of prosperity while using their feet to kick away the very same ladder with this ill-thought-out proposal. I urge hon. Members to support new clause 6.

Amendment of the Law

Andrew George Excerpts

Thursday 22nd March 2012 Commons Chamber

[Andrew Miller (Ellesmere Port and Neston) (Lab)]

It is a great pity that the Chancellor is not here; I would love to look him in the eye and ask whether we are genuinely all in it together. He and I represent Cheshire constituencies, but I do not think that his position is quite the same as that of the good folk living in the Westminster ward—one of the country’s most disadvantaged—in my constituency. I would really like him to say to those people that he was in the same boat as them. That is manifestly not the case. The media have picked up on that and realised that the story that we were told yesterday is full of half-truths that present the facts differently from what is really happening on the ground.

In these tough times, what the Tory-led Government are doing tells us everything that we need to know about them. It proves that the Chancellor and Prime Minister are totally out of touch with what life is like for people in this country. At a time when bills are going up for families on middle and low incomes, the Chancellor has added to them all. Fuel duty is going up, even though petrol prices are at a record high.

I am glad that some Liberal Democrats are in the Chamber. In the west country, there is already a blog about the new pasty tax. The Lib Dems should watch out; that is not the only thing that they are under attack for. They will be the real losers on the issue of regional pay, raised by my hon. Friend the Member for Dumfries and Galloway (Mr Brown) and the hon. Member for Foyle (Mark Durkan). Areas where Liberal Democrats have traditionally been strong would duck out compared with places such as my county of Cheshire, which is also the Chancellor’s, or Oxfordshire, which is where the Prime Minister is. The Liberal Democrats have a real problem when they start looking at regional pay.

[Andrew George (St Ives) (LD)]

There is a debate to be had on regional pay, and my position is well known. On the sublimely fundamental and seriously important issue of pasty taxes in Cornwall, let me reassure the hon. Gentleman that we will be fighting them on the beaches.

[Andrew Miller]

So when I go to Ann’s pasty shop, I’ll be all right, will I?

The Lib Dems are supposed to be strong on matters related to solar power. This morning, the chief executive of the Solar Trade Association said:

“We cannot understand why solar has been singled out for rough treatment on Capital Allowances when it is a popular technology which will soon reach grid parity and provide businesses with a real alternative to dependence on fossil fuels.”

Again, the Liberals have bought into something that is totally contrary to their own policy position. At the same time, the Budget gave a tax cut to the very richest people in our country, with just 14,000 people earning £1 million or more getting a Budget boost of over £40,000 each year. No wonder the Centre for Policy Studies, which is advised by the Minister for Universities and Science, among others, says that the Budget amounted to small-scale tinkering, regional handouts, and a rearranging of the deckchairs. To be fair to the Minister, there is a lot that I do not agree with in the CPS’s press release. Nevertheless, the Government have chosen to cut taxes for 300,000 people earning over £150,000—the richest 1%. How can that be the priority now?

The Chancellor looked quite smug when he sat down yesterday, but I bet he did not feel so smug when he read today’s papers.

Tax Avoidance (Public Servants)

Andrew George Excerpts

Thursday 2nd February 2012 Commons Chamber

[Danny Alexander]

The hon. Gentleman might not have caught up with this, but a great deal of information has already been released on this issue under the Freedom of Information Act, which is precisely how it has come to my attention and that of others. As I said, my role in such matters is to sign off the salary arrangements and ensure that they are appropriate, given the level of salary in place. As I said at Treasury questions a few days back, in the 83 cases in which I have been involved where a previous post holder has been in place, I have reduced the salary substantially in 45 cases and frozen it in a further 23.

[Andrew George (St Ives) (LD)]

Although my right hon. Friend has already covered this matter to an extent, will he tell me what effective measures he inherited, and if they were inadequate, what action he took to put them right?

[Danny Alexander]

As I have said, the terms and conditions of appointments are negotiated by the appointing Department. I have a responsibility to control the salary levels in these sorts of cases, which I discharged in this case. I was not aware of any particular tax benefit to the individual involved. The arrangements in relation to tax avoidance and tax evasion that we inherited were not robust enough, and that is why we have taken significant steps to tighten them up, to ensure that we get the maximum amount of money from people across society. As several hon. Members have said, that is particularly important, given the difficult economic circumstances in which we find ourselves.

Oral Answers to Questions

Andrew George Excerpts

Tuesday 1st November 2011 Commons Chamber

[Mr Gauke]

It is worth pointing out what Standard & Poor said recently when it confirmed our triple A credit rating. It said that if we abandoned our fiscal plans—if we borrowed more—that credit rating would be at risk. The best way of keeping our triple A rating is by sticking to the plan.

[Andrew George (St Ives) (LD)]

8. What plans he has to bring forward fiscal measures to support green growth.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

The Government are committed to supporting green growth, as is demonstrated by the green investment bank, which was allocated £3 billion in the spending review, by the carbon price floor, which is designed to drive investment in low-carbon power generation, and by the green deal, which supports households and businesses in increasing their energy efficiency at no up-front cost.

[Andrew George]

May I, too, extend a very warm welcome to my hon. Friend the Economic Secretary?

In the Budget, the Chancellor pledged to consider incentives to encourage take-up of the green deal. One idea is to have a stamp duty particularly for the least energy-efficient homes. How does my hon. Friend intend to advance those incentives and is she prepared to meet me and industry representatives to find a way forward with the Chancellor’s incentives?

[Miss Smith]

May I take this opportunity to thank my hon. Friend and others for their kind words regarding my role?

As I have mentioned, the green deal is a key part of supporting such green growth and the Government are taking a range of actions to help people to gain control of their household energy bills. I certainly note my hon. Friend’s suggestion and I am happy to meet him to discuss options within public finance constraints.

Fuel Prices and the Cost of Living

Andrew George Excerpts

Wednesday 16th March 2011 Commons Chamber

[Ms Eagle]

Why does the hon. Gentleman not want to help the whole of Scotland? Why does he want to help only a tiny bit of Scotland?

[Andrew George (St Ives) (LD)]

Will the hon. Lady give way on that point?

[Ms Eagle]

I must continue.

The Chancellor should use the Budget to look again at the annual fuel duty rise due in April, because of the price of fuel in world markets. At this time of instability and change in the middle east and north Africa, the Chancellor has to work with other Finance Ministers to try to keep oil supplies flowing and get world oil prices down.

At the weekend, the Deputy Prime Minister claimed that the Liberal Democrats were

“in the middle, for the middle”.

I say to them this afternoon: prove it. If they really cared about the struggles facing hard-pressed families in Britain, they would join us in the Lobby and vote for our motion. I for one look forward to seeing them.

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[The Economic Secretary to the Treasury (Justine Greening)]

I beg to move an amendment, to leave out from “House” to the end of the Question and add:

“notes that the Government inherited the largest deficit in UK peacetime history and that the previous Government and current Opposition has no credible plan to deal with the deficit; further notes that this Government has already taken steps to support families and that those on low and middle incomes will benefit from April 2011 from a £1,000 increase in the income tax personal allowance, above-indexation increases in Child Tax Credit and that pensioners will receive new ‘triple-lock’ increases in the basic State Pension; further notes the significant impact on fuel prices in the UK of the dramatic increase in the world oil price to over $100 per barrel and the impact on households and business; notes that the previous Government increased fuel duty no less than four times between December 2008 and April 2010, proposed introducing a fuel escalator from 2011 and planned for a further series of six consecutive fuel duty rises up to 2014; nonetheless recognises the significant impact of high fuel prices on motorists, hauliers and businesses and that the Government is considering a fair fuel stabiliser that could support motorists and businesses when oil prices are high; and in addition notes that a reduction in VAT on fuel would be deemed illegal under EU law and that the Chancellor will update the House on this issue at the time of the Budget.”.

There we have it, from the party that came into government with fuel duty at 36.86p a litre and left it at 57.19p a litre—a whole load of moaning and insubstantial comments about what it cannot do to help motorists. The Government, unlike the Opposition, understand the seriousness of the issues that we are debating today. We know that the increase in the world’s oil price, as it feeds though to all other goods, is leaving many people out of pocket, and that families up and down the country are finding it hard to make ends meet. The Opposition clearly have no grasp of the issues at hand, as we have just heard; to them, it is just politics. They are simply not interested in how people on the ground actually feel about things, and they have no credible policies to back up their claims.

[Andrew George]

The Labour motion mentions

“securing the appropriate EU derogation”.

I hoped that the shadow Minister would give way to me, so that I could ask her what European derogation that is, and how many times in the past 13 years Labour attempted to seek it. Has the Economic Secretary seen anything in the records of the Treasury suggesting an answer to those questions?

[Justine Greening]

Officials are not aware that the last Government sought any derogation in relation to VAT on fuel at any point in the past 13 years. In fact, if the shadow Chancellor had gone off to Europe with his influencing strategy, which was clearly so unsuccessful when he was running for the leadership, I doubt that there would have been any prospect whatever of his making any progress. The Labour party seems to have about as much understanding today of the economic situation that it has left our country in as it did of the situation two years ago, when it ran this country into the deepest and longest recession in living memory.

Fuel Prices

Andrew George Excerpts

Tuesday 15th February 2011 Westminster Hall

[Miss McIntosh]

My hon. Friend has provided an appropriate example of a business that depends heavily on road haulage to get its product to market, and I am sure that it would be a particular beneficiary if the fuel duty stabiliser or a rural rebate were introduced.

Domestic fuel is a subject that appears in my mountains of correspondence. One or two people have expressed concern about the possible operation of a cartel, particularly in the north of England—Yorkshire, the Humber and the north-east—in domestic heating oil prices. I welcome the fact that the Government have grasped that issue and are looking into it through, I understand, Ofgem, but I hope that one of the purposes of this debate is to push at what might be an open door, to press the Government to, at the very least, examine both where we are and how we got into this difficulty. My constituents have expressed their concerns in fairly strong terms. One stated:

“I like many other people in this country am fed up with having to pay over the odds in tax for what is to many people an absolute necessity rather than a luxury”.

Another wrote:

“I am the owner of a small business and am extremely concerned about increases in fuel duty, which have hit the small business sector the hardest.”

[Andrew George (St Ives) (LD)]

I congratulate my hon. Friend on securing this important debate. I have written to the Economic Secretary about the pilots that were announced last October for the proposed rural area rebate. EU Finance Ministers’ approval will be required before we can even get the small pilots going on the Isles of Scilly and in Scotland, which will take some time. Does she agree that it is really important that the scheme is rolled out as quickly as possibly, and that the Government need to go a stage further and indicate which rural areas they intend to cover?

[Miss McIntosh]

I am taken by my hon. Friend’s arguments, but we learned a lot from the smash-and-crash approach of the Labour Government, who announced that they were introducing a 1p increase due to the state of the economy and the fact that the price of oil was $149 a barrel. The Prime Minister’s response to my question showed a responsible attitude. We need a responsible, well-thought-out approach in the Budget. Then we can have pilot schemes in North Yorkshire, Cornwall, Scotland and Northern Ireland.

--- Later in debate ---

[Miss McIntosh]

Several hon. Friends have made comments that I hope the Government will take up, not least of which is the fact that some small independent retailers who try to offer fuel in rural areas are being priced out of the market because suppliers 20 miles away undercut them substantially. All those issues are worthy of further investigation.

[Andrew George]

Will my hon. Friend give way?

[Miss McIntosh]

I am drawing my remarks to a conclusion.

I believe that we are pushing at an open door, and I take this opportunity to press the Government to change. Doing nothing is not a realistic option. The price of fuel is one of the most pressing issues facing those in rural communities. The small businesses that drive our economy, including the 6,000 small businesses in my constituency alone, are suffering particularly. Fuel forms a large part of individual household income, and it is extremely inflationary in pushing up the price of everyday items. UK hauliers already pay as much as £12,000 a year more than some EU competitors. As I have said, we now have the highest duty on diesel, yet our diesel is the most cheaply produced.

I make a plea to the Minister to stop the 1p increase on 1 April, consider seriously a fuel stabiliser and a remote rural rebate or discount, which would have a favourable impact on many rural constituencies represented in this Chamber, and address the discrimination against rural dwellers endemic in current pump prices. The differential between diesel and petrol is now unacceptable and must be addressed. I urge the Minister to respond in the most favourable terms possible for the good of families, farmers, the elderly, those with young children, small businesses and all of us in rural areas who depend on cars.

[Mr Alan Reid (Argyll and Bute) (LD)]

It is a pleasure to serve under your chairmanship, Mr Turner. I congratulate my hon. Friend the Member for Thirsk and Malton (Miss McIntosh) on securing this debate. The issue is important for those of us who represent rural communities, as the large turnout of hon. Members from the two coalition parties and Northern Ireland indicates. However, the right hon. Member for Delyn (Mr Hanson) casts a lonely figure on the Labour Benches. I also note that no Scottish National party Members have turned up, which is a scandal considering all the things the SNP is saying in the Scottish press. It shows that the SNP’s priorities are completely wrong.

Representing a sparsely populated rural constituency as I do, I am only too aware of the impact of high fuel prices on people and businesses. I represent many islands of the Inner Hebrides. To give some examples, the price of fuel on larger islands such as Mull and Islay is typically 15p a litre higher than at a city centre supermarket, and on the smaller islands such as Coll and Colonsay, the price is usually about 30p a litre higher. That obviously has a great impact on people’s living standards and on anyone on the islands who is trying to run a business.

I was therefore delighted when the Government announced their intention of pursuing a pilot scheme under which a 5p per litre fuel duty discount would be introduced on many islands, including the Inner Hebrides. I know that the Government need EU permission to go ahead with the scheme, that it takes time to get such projects through the EU and that it is important that the Government get their proposals right, but I urge them to take the proposals through the EU as quickly as humanly possible. I hope that there will be no objections in the EU. Several other countries—Greece, Portugal and France—have similar discount schemes on their islands, so I hope there would be no obstacle to our island pilot scheme. However, as other hon. Members have said, it is not just on the islands that the price of fuel is high. It is the same in many rural parts of the country.

[Andrew George]

I am grateful to my hon. Friend, who is making an excellent case. My constituency, like his, would benefit from the proposed rural rebate, especially the Isles of Scilly, which have just 2,000 people. He is absolutely right that it should be a fait accompli at the EU level, because the principle is already established. The difference in price on the Isles of Scilly is much the same as in his constituency. Does he not agree that we must press Ministers not only to get the proposals through the EU as quickly as possible but to indicate where the pilot will be rolled out beyond the small areas that will benefit in the first phase?

[Mr Reid]

I agree. Some 6,000 of my 60,000-odd constituents will benefit from the pilot scheme, but I hope that it can be rolled out later to other rural parts of the country. However, the most important thing is to establish the principle. My hon. Friend will share my frustration that throughout the last Parliament, we proposed such a scheme every year in the Finance Bill and, although we often heard noises of sympathy from Labour Ministers, no action whatever was taken. It is important to establish the principle, which is why the pilot scheme is so important. Once the principle is established and is shown to work—Labour Ministers always said that it could not, in practice—we can prove it will work. It is important to establish the pilot and prove that it works. Then we can roll it out to other rural parts of the country.

On the coming Budget, the previous Government introduced the fuel duty escalator, which increased fuel duty by 1p over and above the rate of inflation. According to my calculations, that means that the tax on fuel would have increased by 4p in the coming Budget if Labour were still in power. Thankfully, they are not. I think we have established that any argument that fuel duty must increase for environmental reasons no longer stacks up. Market forces have already driven the price of fuel very high, which deters people from using their cars. Any further fuel duty increase would not help the environment; it would simply harm the rural economy.

Oral Answers to Questions

Andrew George Excerpts

Tuesday 21st December 2010 Commons Chamber

[Mr Osborne]

At least I am not the pantomime dame. The measures we are taking are dealing with the economic inheritance that the previous Government, of whom the hon. Gentleman was a Minister, left this country. As we go into the new year, we are one of the few European economies not facing concerns about their sovereign debt issues, and we are providing a platform for economic growth next year. That is why people are looking at the UK and saying, “There is a country that is dealing with the problems.”

[Andrew George (St Ives) (LD)]

T3. Treasury Ministers rightly assert that the vulnerable should be protected and that those with broader shoulders should bear the greatest burden. With that in mind, will Ministers report on the effectiveness of the initiative announced in September to bear down on the estimated £42 billion of tax that the wealthy do not pay each year?

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

My hon. Friend is right to highlight this issue. We announced that £900 million would be spent over the spending review period on reducing the tax gap, and that will begin in 2011. Earlier this month, we announced plans to tackle tax avoidance with several detailed proposals on issues that had been left for many years. We have taken a firm line on those and we hope that that will raise considerable revenue from people who should be paying more in tax.

Crown Currency Exchange

Andrew George Excerpts

Tuesday 7th December 2010 Commons Chamber

[Tessa Munt]

I hope so. There have been some arrests today, and I think that Devon and Cornwall police’s serious crime squad is taking part. I hope that that prefaces some action by the FSA.

[Andrew George (St Ives) (LD)]

Arrests have been made, including of one of my constituents. Indeed, the company’s offices were based in Hayle in my former constituency. The case has given rise to enormous concern, and although it is not on the same scale as sub-prime casino banking it has left many people in serious circumstances. I hope that my hon. Friend will advance her case, because this situation clearly needs to be regulated in future.

[Tessa Munt]

One might just need to get rid of “registered”, because it seems to have absolutely no meaning and to afford no protection—nothing.