Motoring Fuel Costs Debate

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Department: HM Treasury
Tuesday 14th June 2011

(12 years, 11 months ago)

Westminster Hall
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Robert Halfon Portrait Robert Halfon
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I give way again, but then I must make progress.

David Simpson Portrait David Simpson
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The position in Northern Ireland is somewhat different from that in Harlow, because we have a land border. Currently, the Government are losing £280 million to £300 million a year on fuel smuggling and laundering of fuel. We are currently looking at the whole issue of corporation tax in Northern Ireland but, if duty on fuel were reduced or even if the suggested pilot scheme were in Northern Ireland, it would save the Government an absolute fortune, and would help the motorist and commercial enterprises in the long term.

Robert Halfon Portrait Robert Halfon
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As so often in Westminster Hall, as I said last week, I find myself agreeing with the hon. Gentleman. That might form part of the commission’s inquiry. At the end of July, I plan to go in a truck to Europe, to see how truckers there manage to get all their fuel cheaply, while English truckers are paying far more. The hon. Gentleman makes an important point.

Returning to my constituency, we are a town held to ransom by petrol prices. Motorists are robbed of a tenth of their salary just to fill their petrol tank. Fuel poverty is defined as spending more than a tenth of income to stay warm. That is all about domestic homes, but what about spending a tenth of income just to drive to work, which is what motorists are doing? The issue is also one for welfare reform. I welcome the Government making great strides with universal credit, lower taxes for lower earners and the Work programme. Yet all those benefits could be wiped out by the rising cost of fuel. Every 1p increase in the pump price will cost the average Harlow motorist £13 a year. For someone on a low income, perhaps commuting from Harlow to Basildon, the actual cost would be much higher. Inflation soon adds up, and we must not let petrol prices become part of the poverty trap and deter people from getting off benefits and into work.

Nor should we forget rural constituencies. My hon. Friend the Member for Hexham (Guy Opperman), who cannot be here because of his recent operation, has campaigned for many years against the fuel poverty suffered by his constituents. He wrote to me yesterday:

“fuel is a necessity in a constituency of 1,000 square miles, not a luxury.”

Throughout the country we see the same tragedy.