Hauliers back SNP fuel duty regulator

The Road Haulage Association (RHA) have repeated their support for the SNP’s Fuel Duty Regulator and are calling on MPs from all parties to back Stewart Hosie MP’s amendment when it is debated in the House of Commons next week.

In a letter to Mr Hosie, RHA Scotland Director Phil Flanders said:

"UK hauliers are struggling as never before to cope with continually rising fuel prices.

"As it is, a number have ceased trading and many more are in the process of cutting back the numbers of vehicles they operate. If there is no stop to these increases, many will not survive.

"It is no longer possible to give advance prices as no one knows what the costs will be next week let alone in a few months’ time.

"It is also proving difficult to pass all the extra cost on to the customers who, in many cases, are also struggling to remain competitive. Hauliers are at their wit’s end.

Stewart Hosie MP, SNP Treasury Spokesman, who will introduce the amendment next week, said:

"The RHA have been vocal in their demands for action on spiralling fuel costs, and I am delighted that they have thrown their weight behind the SNP’s proposal for a regulator.

"Support for a regulator is mounting outside parliament, and we must now secure support in parliament.

"While the Treasury rakes in billions from North Sea Oil revenues, Scottish industry is suffering. It is ridiculous that in an oil rich country key sectors are struggling to fill their tanks.

"Gordon Brown cannot continue to sit idly by while fuel costs cripple the Scottish economy and lifeline services. Thanks to Scotland's oil, the UK Government has the resources to step in and lend a hand. All that is missing is the political will.

"I welcome RHA support for this proposal, and urge all parties to support Scottish industry and to back the Fuel Duty Regulator in Parliament next week."

The introduction of the SNP's regulator mechanism would guarantee a double protection for motorists and the road haulage industry.

Firstly, higher oil prices would trigger an automatic freeze in fuel duty rates. Second, any extra cash raised from VAT on petrol or diesel as a result of the higher pump prices would go back into an equivalent cut in fuel duty. This makes obvious sense particularly with oil prices reaching record highs.

With taxes currently make up over 60% of the price of petrol and diesel and the regulator would result in an automatic freeze on fuel duty increases and a reduction in duty to match any increases in VAT.