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9. Mr. Bill Wiggin (Leominster) (Con): What recent representations he has received about the effect of fuel prices on the competitiveness of the road haulage industry. [191996]
The Secretary of State for Transport (Mr. Alistair Darling): The Government have regular discussions with the haulage industry through the Road Haulage Forum, and meetings with the Road Haulage Association and the Freight Transport Association.
Mr. Wiggin: The AA says that the average fuel price is 83.5p per litre in the UKit is 84p per litre in Walesbut it is 61.85p per litre in France. The Government take 71.3 per cent. or 59p per litre in tax, which is 2p less than the French pay in total. The UK fuel price has increased by 0.7p per litre in the past month and is the most expensive in the EU. With such a tax burden, how does the Secretary of State expect UK hauliers to remain in business?
Mr. Darling: The hon. Gentleman no doubt knows that in broad terms successive Governments have taken the view that a certain proportion of expenditure should be financed by fuel taxation. He also knows that anyone who conducts a business in France must pay costs that British hauliers do not have to pay, such as employment costs, insurance costs and social costs. I am surprised that the hon. Gentleman advocates that course of action.
Mr. David Chaytor (Bury, North) (Lab): Given that the United Kingdom is shortly to become a net importer of oil and that we face the global peak of oil production by the end of the decade, is not the real issue for competitiveness to increase the fuel efficiency of large vehicles and to encourage the use of more biofuels?
Mr. Darling: I agree with my hon. Friend. Even were there limitless supplies of fossil fuels, which of course there are not, it would still be necessary, for competitive and for good environmental reasons, to improve the fuel efficiency of vehicles. Engines generally are cleaner and much more efficient than they were 10 or 20 years ago. The Government support that trend and want to encourage itthe road haulage modernisation fund is one way in which we do so. There are some very good examples of new technology that are improving matters.
Looking further ahead, we need to invest in the possibilities of using fuels such as hydrogen and liquefied gas. Many initiatives are being financed by the Government and supported by the industry, all of which
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are absolutely necessary in their own right, as well as for the obvious reason that fossil fuels are, by their very nature, finite.
Pete Wishart (North Tayside) (SNP): Can the Secretary of State explain why Scotland's hauliers have to endure higher fuel prices than the rest of the United Kingdom? What he is doing to address that?
Mr. Darling: On the basis of my experience, I can tell the hon. Gentleman that if he travels around Scotland he will see a wide range of fuel prices. Indeed, in the city in my constituency petrol is cheaper than in many parts of England. The hon. Gentleman sometimes looks at the United Kingdom through a set of blinkers that is extremely narrow even by his standards. He cannot get away with this nonsense that everything in Scotland is bad and everything in England is good, because the facts do not support that argument.
Mr. Patrick McLoughlin (West Derbyshire) (Con): This is the manifesto on which the Secretary of State fought the last general election:
"We will . . . ensure that hauliers from overseas pay their fair share towards the cost of our roads."
Many British hauliers feel that they are unfairly treated compared with their European competitors who trade in this country. What is the Secretary of State doing about implementing his manifesto commitment?
Mr. Darling: I shall tell the hon. Gentleman what we are doing. We will introduce the lorry road user charging regime, which is under development at the moment[Hon. Members: "When?"] Conservative Members say, "When?", but they always give the distinct impression that they are dead against it. It is supported by the industry and is on track to be introduced in 200708. I believe that it will be a far better way of charging lorries and, as I have told the House many times, there is great potential for taking the same approach to general road pricing if that proves technically possible. That is what we are doing, and I am glad that the hon. Gentleman now supports us.
Rev. Martin Smyth (Belfast, South) (UUP): The Secretary of State referred to the way in which taxes in France work. Does he agree that the remoter areas of the United Kingdom suffer because the competitiveness of their manufacturing industry is hit as well as the road haulage industry?
Mr. Darling:
I understand the hon. Gentleman's point. I am aware of the concern in Northern Ireland about the fuel price differential between it and the Republic. A whole series of issues must be taken into consideration in relation to competitiveness, including labour costs, the availability of skilled labour, and the general environment for doing business. The hon. Gentleman will be well aware that many businesses in Northern Ireland are successful because of the amount of investment and people's determination to improve their economic circumstances. I readily agree that fuel tax is a consideration, but there are many others.
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Mr. Tim Yeo (South Suffolk) (Con): Will the Secretary of State confirm that the rise in fuel duty since July alone, which was mentioned by my hon. Friend the Member for Leominster (Mr. Wiggin), is costing the average haulier £5,000 per lorry? As fuel in Britain now costs at least 20p per litre more than in several other European countries, why have not the Government absolutely ruled out the 1.9p per litre duty increase that the Chancellor merely postponed from September until November? Why are they going to dither around for another four years before tackling the unfair competitive advantage that continental hauliers have over their British counterparts?
Mr. Darling: First, fuel duty has not increased since July. Fuel prices have gone up but that is because of what is happening to world prices. Progress is being made on lorry road user charging. However, given successive Governments' difficulties with big IT projects, it is important that we get the detail right. We are working closely with the industry to introduce lorry road user charging.
The hon. Gentleman asked about fuel duty. The Chancellor made it clear that he will revert to that when he presents his pre-Budget report in the autumn.
10. Helen Jackson (Sheffield, Hillsborough) (Lab): What plans he has to bring about improvements to the rail network in South Yorkshire. [191997]
The Minister of State, Department for Transport (Mr. Tony McNulty): Sheffield station will receive a major refurbishment, which is expected to be completed in 2007. The midland main line and transPennine express franchises include the provision of new rolling stock, leading to increased capacity, improved service quality and improved performance and reliability.
Helen Jackson: I thank my hon. Friend for his answer. I have asked at previous Question Times about better links from South Yorkshire to major cities such as Manchester and Leeds. However, although the enhanced faster service to Leeds is welcome, it has been established at the expense of stopping trains between towns in South Yorkshire. That is serious because there is a huge job improvement programme in south Yorkshire through objective 1 areas, and public transport is simply not keeping pace with the jobs that are being created. Will my hon. Friend reconsider investment that allows services to Chapeltown, Elsecar and the other stations that are losing services to be reinstated, as well as maintaining the fast link to Leeds?
Mr. McNulty: I take my hon. Friend's point. There needs to be a balance between connections to various cities in the north, job opportunities and the stopping services. We keep that constantly under review, both in the wider scheme of things in our general strategy and through rail substitution and other matters in the local transport plan.
Mr. Richard Allan (Sheffield, Hallam)
(LD): Does the Minister support the efforts of the Hope Valley rail users group to get more evening train services from
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Manchester to stop at Dore station in South Yorkshire to relieve the appalling overcrowding on the evening services on that line?
Mr. McNulty: The honest answer is no, because I do not know anything about that. Let me find out some more in the context of the new transPennine express franchise and I shall happily get back to the hon. Gentleman.
John McDonnell (Hayes and Harlington) (Lab): In examining the available resources for improvements in the region, will my hon. Friend reconsider the escalating costs of the tendering process for Northern Rail? In a parliamentary answer in June, he estimated that the cost had risen to £3.9 million. Further delays mean that the cost will have increased again. My hon. Friend could avoid those costs by implementing Labour party conference policy to bring Northern Rail back into the public sector.
Mr. McNulty: I understand that the Strategic Rail Authority let the northern franchise at 11 o'clock this morning. In the context of the broader issue, whatever happened at the party conference, the Secretary of State made clear the Government's position on rail in the two White Papers that were issued in July. That is the way in which the Government will take the matter forward.
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