Proceeding contribution from Stewart Hosie (Scottish National Party) in the House of Commons on Wednesday, 13 May 2009. It occurred during Debate on bill and Committee of the Whole House (HC) on Finance Bill.
Finance Bill
It was, but that is wide of this issue, as is the cabotage issue, although I might refer to that later. The hon. Gentleman is absolutely right to say that although fuel costs form a massive part—more than a third—of the cost of running a haulage business, other issues can have an impact on a company's competitiveness and ability to stay in business. Our 2006 debate was held less than a year after the 2005 debate, but by that time the price of fuel at the pump had crashed through the £1 barrier in many parts of Scotland. There had been a 20 to 25 per cent. rise in the cost at the pump and that exacerbated the difficulties faced by families and businesses, and by the haulage sector in particular. We tabled similar amendments for debate in 2008, at which time the reports were quite frightening. The Sunday Herald reported in April 2008 that, out of the average £37,000 a year that it cost to tank up a typical 44-tonne truck, the Government took £25,000 in tax. The same article confirmed that a 20-vehicle haulage business would have to make £30,000 more simply to meet its increased costs, and that was on top of the £30,000 that it had to find for increased fuel costs in the previous year. Within a few months of that report in April and our debate in July 2008, there was a price rise of more than 14p a litre, and the price of oil was expected to reach $140 a barrel. We know that that had an impact. When Ramage, a haulage firm, went into administration, its administrator cited the high cost of fuel as a contributory factor. Normal families running a single diesel car were facing additional costs of not £13 a month, which they had dealt with in 2006, but £30 a month. A family running two petrol cars was paying an extra £46 a month, or about £500 a year.
Secondary information
- Type
- Proceeding contribution
- Reference
- 492 c907-8
- Session
- 2008-09
- Chamber / Committee
- House of Commons chamber
- Subjects
- Accountability Audit Accountancy Companies Bingo Excise duties Exhaust emissions Large goods vehicles Fuels Gaming Double taxation Motor vehicles Oil Prices Taxation VAT Rural areas
- Legislation
- Finance Bill 2008-09
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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