Call for action on escalating fuel prices in the Borders and highlighting that in hard times for our local retailers that we should do all we can to shop locally.  

in the Berwickshire News, Southern Reporter, October 2007 

Sir, 

In 2006, the SNP group at Westminster highlighted that fuel tax increases introduced by the Tories' fuel tax escalator, and implemented by Labour's own Dick Turpin, Gordon Brown, had resulted in pump prices in rural Scotland having broken the £1 per litre mark. Scotland now again faces rapidly rising fuel prices on our forecourts. Incredibly, we are about to see three more tax hikes in fuel duty over the next eighteen months from a Labour UK government that is blind to the needs of rural areas. This week's increase of 2p per litre (2.3p per litre after VAT) will be followed by a totally unjustified increase of a further 4.5p per litre for diesel by April 2009, raising the average litre of diesel by a total of 6.8p per litre, even before rapidly rising crude oil prices.

An SNP amendment to the 2006 Finance Bill proposed protection for motorists from the impact of soaring crude oil prices, through a Fuel Tax Regulator. The Regulator would have ensured an automatic freeze on any planned fuel duty increases, and a reduction in duty to match any increases in VAT revenues arising from higher pump prices. This would have been tax neutral, and would have helped to allow businesses to plan ahead and to compete more effectively in export markets, where haulage costs are critical. However the SNP's very sensible amendment was defeated.

While CO2 emissions need to be controlled, the Government should spare the stick when there is no carrot on offer. The Borders has low population density and negligible public transport infrastructure, while urban areas of the UK, well served by public transport, have considerably lower fuel prices. Adding insult to injury, Scotland's rural economy suffers the UK's highest fuel costs despite our country being one of the World's key oil producers and refining a disproportionately large share of the UK's petrol and diesel.

In an area such as the Borders, rising pump prices will increase the cost of goods brought in by hauliers, squeeze farm gate prices, punish consumers on fixed incomes, and deter tourists. It could push hauliers to the brink, by adding almost £3000 to the annual cost of operating a 44-tonne articulated lorry. It will most likely further erode profit margins at our few remaining garage forecourts and several Borders villages, such as Ayton, Gordon, Co'path and others have already lost their local petrol stations. Other closures may follow. I would urge consumers to save their anger for the ballot box and support our remaining independent garages who are struggling against competition from supermarkets that buy fuel in bulk and then sell it as a loss-leader. I would also urge readers to do their best to shop locally in the festive period ahead, at what could become a difficult time for our retailers.

Yours faithfully

Paul Wheelhouse 

SNP Prospective Parliamentary Candidate, 

Berwickshire, Roxburgh and Selkirk

 

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