Carmichael comments ahead of Parliamentary debate on fuel prices in the Isles

10.21.00am GMT Tue 9th Feb 2010

Orkney and Shetland MP Alistair Carmichael will tomorrow question HM Treasury on their unwillingness to trial a fuel duty rebate system in the Northern Isles. Mr Carmichael will be pressing Treasury ministers to offer credible reasons why a fuel duty derogation such as that used in Europe cannot be piloted across Orkney and Shetland.

Mr Carmichael has secured a 90 minute parliamentary debate on ‘Fuel duty on petrol prices in remote and peripheral areas’ on the morning of Wednesday 10 February 2010.

Commenting Mr Carmichael said;

“As prices at the local petrol pumps steadily creep up this is not a time to let up in what has been a long running campaign. It remains my view that the government not only has the opportunity to help in this issue, they in fact have a duty to do so. This is probably the single greatest disadvantage forced on to local communities. The resistance from the government to addressing it frankly makes little sense”.

Mr Carmichael has since his election in 2001 been lobbying both the Scotland Office and the Treasury to on their refusal to implement fairer fuel prices for island residents. In August 2009 Mr Carmichael met with Scottish Secretary Jim Murphy MP in Orkney to discuss the high cost of fuel which continues to punish families and businesses across the Northern Isles.

Notes:

Exchequer Secretary to the Treasury, Sarah McCarthy Fry MP will be answering on behalf of the government.

Scottish Secretary Jim Murphy MP appeared to indicate last summer that the Government were willing to introduce a fuel duty pilot scheme. Mr Murphy later said he was misrepresented.

20 July 2009 : Column 767W

Fuels: Prices

Mr. Carmichael: To ask the Secretary of State for Scotland when his Department’s officials last met HM Treasury officials to discuss the proposals for a reduced fuel prices pilot scheme in island communities in Scotland. [287717]

Ann McKechin: Officials in the Scotland Office have discussions with HMT officials on a regular basis on a variety of issues.

Mr. Carmichael: To ask the Secretary of State for Scotland (1) what steps his Department has taken to identify suitable locations for the pilot scheme for reduced fuel prices in island communities in Scotland; [287718]

(2) what plans he has for a pilot scheme for reduced fuel prices in the Highlands and Islands; and when the scheme is planned to start. [287719]

Ann McKechin: The Government have no plans to introduce such a scheme. While the Government recognise the impact of higher fuel prices on those living in island communities in Scotland and in other rural areas across the UK, such prices are set by fuel producers and suppliers as a result of their commercial judgments, driven by market forces. OFT reports have repeatedly shown that markets are functioning properly in rural areas such as North West Scotland and the Scottish islands, but any evidence of anti-competitive behaviour on the part of fuel sellers can of course be brought to their attention.

The Secretary of State met with the hon. Member for Argyll and Bute (Mr. Reid) at his request to discuss these issues.