"FAIR FUEL TAX REGULATION REQUIRED" says Mather

The latest figures from the AA indicating that drivers here are being subjected to petrol tax increases far in excess of anything endured across Europe demonstrates why the Scottish National Party are right to call for the establishment of a fuel tax regulator. This was stated by Jim Mather, MSP, for Argyll & Bute, after his Westminster colleague Angus MacNeil MP, Comhairle Nan Eilean, had raised similar concerns in a statement issued in London earlier today.

Jim Mather said,

"For most Scottish MPs and MSPs the price of petrol and diesel impacts very directly on their constituents' day to day living. Living as they do in areas where much of what they need is dependent on transport, haulage and ferries, every rise in the cost of fuel impacts upon the costs of goods and services and makes the export of local produce that much less competitive.

Angus MacNeil has very properly highlighted the disparity that exists between the fuel tax regimes in the UK compared with other mainstream European countries. Since the Pre-Budget Report at end November 2008 Fuel Duty and VAT on petrol has risen here by 11.46%. In the same period the rise in Austria was 2.23% and the average increase over 10 countries, including France, Spain and the Netherlands is 5.07%. None of those countries are, like the UK, major oil producers. Figures for diesel are only marginally less damaging.

It is common knowledge that the Labour Government is intent on using fuel tax as a means of raising finance to pay off the bank bail out. They are keen to characterise this as taxing hauliers but the truth of the matter is that it is hard working people who are left to pick up the increased fuel bills.

We will continue to campaign at Budget time for a fuel duty regulator to ensure a fairer and more equitable system for our remoter areas.

Scotland should be benefiting from the riches of our offshore resources rather than watching it being used to fill the massive deficit at the Treasury at a time when the Scottish Budget is reduced even further."