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Proceeding contribution from Alistair Carmichael (Liberal Democrat) in the House of Commons on Wednesday, 10 February 2010. It occurred during Adjournment debate on Fuel Duty (Rural Areas).


Fuel Duty (Rural Areas)

Indeed. As we scrutinise with ever-increasing rigour where money is coming from and where it is going to, such considerations will become more and more weighty. Indeed, the matter requires substantial attention. The assistance that is given to island and peripheral communities in other parts of the European Union is an issue that has been picked up recently by my colleague, George Lyon, in the European Parliament. He put a series of questions to the EU Commission and was given an answer on 8 January that states:"““The Commission can, nevertheless, confirm that—on a different basis—in order to partially offset the additional costs of insularity””—" that could be put in better English and, being an islander, I do not like the term ““insularity””—"““and thus geographical remoteness and difficulties of supply, France was authorised to apply a reduced rate of taxation to unleaded petrol used as motor fuel and consumed in the Corsican department. Moreover, at the moment of the adoption of Council Directive 2003/96/EC4—and for similar reasons as France—Portugal and Greece were authorised to apply reduced rates of taxation for fuel consumed in the Autonomous Regions of the Azores and Madeira and on some Greek islands. Concerning the details of the schemes, the Commission can inform the Honourable Member that in the case of Corsica, the reduction is 1 cent per litre. In the case of the Greek islands, the reduction can be up to 2.2 cents per litre. In the case of Azores and Madeira, the directive does not specify the amount of the tax reduction, however, according to the information available to the Commission, the degree of tax differentiations from the Portuguese mainland is 1.5 cents per litre (Madeira) and 3.8 cents per litre in the case of the island of Azores.””" I bring that answer to hon. Members' attention because it is important for us to understand that the problems that are faced by our communities are not unique; they are shared by different communities in the European Union. However, they get very different treatment from their Governments than that which we have experienced. I have asked Ministers in the past to consider such a derogation, and I make the same request of the Minister today. Will she consider setting up a pilot scheme to assess whether the Government's concerns are legitimate, real and substantial—I suspect that they are not—or whether they are just an excuse for continuing to do nothing?


Secondary information

Type
Proceeding contribution
Reference
505 c259-60WH 
Session
2009-10
Chamber / Committee
Westminster Hall
Subjects
Costs Concessions Excise duties Fuels Highlands of Scotland Petrol Prices Rural areas Diesel Shetland
Link
View this Proceeding contribution on www.publications.parliament.uk