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Mr. Milburn: If there is a choice between believing what is in the Red Book and what is in The Daily Telegraph, I know which I would opt for. It is a matter for the Scottish National party--[Interruption.] Well, we know where the Opposition stand, but perhaps they and the SNP are in bed together on this issue; that is for the SNP and the Conservative party to sort out between themselves.
Mrs. Angela Browning (Tiverton and Honiton) rose--
Mr. Milburn: Who is next? I give way to the hon. Member for Cotswold (Mr. Clifton-Brown).
Mr. Clifton-Brown: I am grateful to the Chief Secretary for giving way. Following up the question asked by my hon. Friend the Member for South Holland and The Deepings (Mr. Hayes), will he confirm that not only has he increased the fuel duty escalator from the originally proposed 5 per cent. to 6 per cent., but that the increase is cumulative? Value added tax is imposed on top of that 6 per cent., amounting to a cumulative increase of about 6.2 per cent. every year. Over 10 years, that would double the duty on diesel. Will he also confirm that the Conservatives, when they introduced the fuel escalator, were committed to its operation only until 2000? The Government have committed themselves to the regime until 2002.
Mr. Milburn: I shall come back to some of the figures that are being bandied about by the hon. Gentleman, and by other Conservative Members, in a moment, but I remind him that Conservative Members were elected on a manifesto at the general election. Indeed, the Conservative party published what it called a green manifesto, which Conservative Members presumably considered to be binding for the remainder of this Parliament. In that manifesto the Conservatives stated:
- "We need to balance the freedoms the car provides and its impact on our environment . . . We will continue to encourage the manufacture of more fuel-efficient vehicles through annual increases in fuel duties."
Mr. John Hume (Foyle): Does the Chief Secretary realise the damage that the rise in the cost of fuel is doing to Northern Ireland, above all other areas, particularly to the border regions? For example, in my constituency,
for £100 one can buy 139 litres of diesel, but if one goes a mile down the road one can buy 229 litres. Four-star petrol costs 77p a litre in my constituency, where as one mile down the road it costs 62p. Unleaded petrol costs 70p in my constituency, whereas one mile down the road it costs 53p. That is wiping out petrol stations throughout our area. Is the right hon. Gentleman going to do something about that?
Mr. Milburn: I am well aware of the concerns that the hon. Gentleman raises in relation to Northern Ireland. The Government and Customs are both aware of the illegal trade that takes place between the Republic and Northern Ireland. We are also aware of the problems that the illegal trade causes for traders in the north of Ireland. I hear what the hon. Gentleman says and if it would help him and his colleagues, Treasury Ministers would be happy to meet him to hear about his constituents' concerns. I should be happy to organise that as soon as is convenient to him.
Mr. Bercow: The Chief Secretary should know perfectly well that the Conservative party was not committed to percentage increases in the fuel duty escalator at the time of the election. I am happy to parley the point with him at any stage. Does he not accept that the Paymaster General, who is sadly not in her place, has a good deal of explaining to do about why she vigorously opposed the introduction of the escalator at 5 per cent., but is a fanatical enthusiast for it at 6 per cent.?
Given the Chief Secretary's concerns about the dangers of social exclusion, what constructive remark can he make to my 81-year-old constituent, Mrs. Zettl, who lives in the high street of Buckingham and who is infuriated by what has happened? As an elderly pensioner, she works for local charities that cannot afford to reimburse her, and her social life will be greatly undermined as a result of the Government's inconsiderate policy. What does the right hon. Gentleman have to say to her?
Mr. Milburn:
What passes between the hon. Gentleman and his constituent is clearly a matter for him. However, I advise him to point out the relative impact of the fuel duty escalators applied by previous Conservative Governments and by the Labour Government. I shall come to that issue in a moment or two. The crux of it is that the increases in prices that took place under the previous Conservative Government, particularly in diesel, far exceed the increase that has taken place under this Government.
Mr. Milburn:
I shall give way to the hon. Member for Tiverton and Honiton (Mrs. Browning) and then I must make some progress.
Mrs. Browning:
May I press the Chief Secretary on the answer that he gave to the hon. Member for Workington (Mr. Campbell-Savours)? I have a Devon constituency, where road haulage and distances are critical. It is a matter for the Treasury, whatever the outcome of the inquiry about costs by the Department for the Environment, Transport, and the Regions. We are trying to get a feel for how responsive the Chief Secretary is to the plight of the road haulage industry. Can we take it that he does not agree with the comments of the hon.
Mr. Milburn:
As the hon. Lady is well aware, the Government and the road haulage industry are working in partnership, through the road haulage forum. That is an extremely sensible way to deal with the issues. It is certainly preferable to the disruption that we have seen on the streets of some of our major cities in recent weeks. I hope that no right hon. or hon. Member would condone such disruption. We are considering the competitive position of the industry in discussions with the road haulage forum. We made good progress at our first meeting, and in so far as is possible we shall address the concerns of the industry. I say in all candour to the hon. Lady that that dialogue is far more profitable for the industry than the disruption that we have seen from a minority of militant hauliers who want to hold our inner cities to ransom.
4 pm
Mr. Owen Paterson (North Shropshire): Will the right hon. Gentleman give way?
Mr. Milburn: No. I have given way I do not know how many times, and I want to make some progress.
The Government are continuing to operate the escalator because it will help us to meet the commitments that we made at Kyoto. We all have a part to play in helping to meet those legally binding obligations. Because of the escalator, urban air quality will improve and greenhouse gases will be reduced by between 2 million and 5 million tonnes of carbon a year by 2010. The quality of air in urban areas in particular will be improved because of that. Nationally, road transport is responsible for almost a quarter of particulate emissions and almost half the nitrogen oxide emissions. Diesel is the worst offender, which is why the clause widens the differential between it and other fuels.
Until last week at least, the Opposition supported the escalator. They maintained and increased it. The shadow Chief Secretary, the right hon. Member for Wells (Mr. Heathcoat-Amory), was one of its leading proponents. Incidentally, I notice that he is not present. Just four years ago, during consideration of the 1995 Finance Bill, in the same debate that we are having today, he told the Committee of the House why the fuel duty escalator was such a good idea. He said:
Mr. Graham Brady (Altrincham and Sale, West)
rose--
Mr. Milburn:
I have already given way to the hon. Member for Buckingham (Mr. Bercow), but I havenot given way to the hon. Member for South-West Bedfordshire (Sir D. Madel).
Sir David Madel:
The right hon. Gentleman has just referred to the quality of urban air. If he is so concerned about it, why have the Government cut the bypass programme to ribbons?
Mr. Milburn:
The hon. Gentleman agreed to a green manifesto. At least I presume that he did, because he was a Conservative candidate at the general election. Despite all the difficulties, divisions and the splits inside the Conservative party, at least the Tories all signed up to the manifesto on which they went to the British people at the election.
"The 5 per cent. real increases are also an important part of our strategy to reduce carbon dioxide emissions. The fuel duties policy should reduce carbon dioxide emissions by around 2.5 million tonnes of carbon by 2000. This, together with other measures already announced, should enable us to meet our targets of reductions arising from the Rio agreement."--[Official Report, 23 January 1995; Vol. 253, c. 98.]
Sir David Madel (South-West Bedfordshire)
rose--
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