Holyrood debates fuel price cut for remote areas

Remote communities must be given discounted fuel to combat the effects of "astronomical" prices on local industries and vulnerable people, an island MSP claimed today.

Western Isles SNP MSP Alasdair Allan called on Chancellor Alistair Darling to follow the example in other European countries which allow price cuts in remote areas.

Speaking in the Scottish Parliament, Mr Allan said: "This debate is about the constituents who have contacted me - and others I'm sure - to tell me that they cannot afford to travel to work.

"It is about the fishermen telling me that they fear for their livelihoods because of the 80% rise in their fuel in the past two years.

"And it is about the pensioners saying they do not know how to get to the shop because the shop is some miles away - and they can no longer afford to drive there."

He said France and Greece use "derogation" to discount fuel and compared the £4 billion revenue received by UK Treasury to the high cost at the petrol pump locally.

Mr Allan continued: "The Western Isles competes with Shetland for the distinction of being the most expensive place to fill up your car - not in Scotland, but the whole world.

"I await the call from the Falkland Islands or Tristan da Cunha to contradict me on that one."

He said the price of diesel in North Uist is now £1.45 per litre.

Mr Allan said Westminster supported derogation in France and called for the same support for islanders in Scotland.

He said an EU directive allows member states to apply reduced rates to products consumed "within particular regions of their territories".

He continued: "If the Chancellor is willing to listen to islanders on this, as I hope he is, then we can begin to address some of the economic and social injustices which they currently face."

Mr Allan said Scottish Government figures had shown that the Treasury would make an additional £4bn in revenues this year due to higher prices at the pumps.

"While the Treasury makes millions from soaring revenues more and more businessmen, farmers, fishermen and families are finding themselves out of pocket," the MSP said.

MOTION IN FULL

That the parliament notes that the price of diesel is now over £1.30 in the Western Isles and across Scotland's island and remote communities, making it probably the most expensive diesel in the western world; further notes that fuel costs now represent an ever increasing burden in the Western and Northern Isles, not least for businesses and fishermen, some of whom report 80% increases in diesel costs in the last two years; notes that the main company delivering fuel to the islands deposits fuel at differing costs at different ports on the west coast despite the fact that the same vessel is used; notes the irony of an oil-producing nation putting its motorists, businesses, fishermen and rural businesses in this impossible position, and finally notes the various measures that exist in parts of France, which make cuts in fuel duty in the remotest areas.