Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 500 - 502)

WEDNESDAY 14 FEBRUARY 2001

MR PETER HAIN, MP AND MR STEPHEN TIMMS, MP

  500. I am suggesting you reduce the duty all around in the United Kingdom, more in line with what it is in the rest of Europe.
  (Mr Timms) If you were to reduce the duty all round then the receipts to the public purse from petrol duty would be very greatly less.

  501. Would that be a disaster? The Prime Minister was telling us last year that we have the highest fuel taxes in Europe because we need to fund our public services. How is it that in France they have better public services and much lower fuel taxes?
  (Mr Timms) The overall rate of taxation in the United Kingdom, of course, is substantially less than it is in France. There is no point in suggesting we change one tax, we must look at the overall picture, which is very different to the one that Mr Chope is suggesting.

Chairman

  502. I think Mr Chope and yourself have succeeded in confusing everybody else. Some might argue that if we had a single currency then we would have greater transparency, but I am not sure Mr Chope wants to go down that road. Can I thank you both for your contributions. Mr Hain, you are staying with us, but thank you, Mr Timms.
  (Mr Timms) Thank you very much indeed, Chairman.





 
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