MP welcomes government concession on rural fuel investigation

12.00.00am GMT Wed 10th Feb 2010

After pressure from Highlands and Islands MPs in a Commons debate this morning, the Treasury agreed that officials will carry out a formal study of the operation of fuel duty discount schemes in other countries.

Danny Alexander, Lib Dem MP for Inverness, Nairn, Badenoch and Strathspey, spoke in today's debate, which was called by Orkney and Shetland Lib Dem MP Alistair Carmichael.

Speaking after the debate, Mr Alexander said:

"The case for lower fuel duty in remote and rural areas is based on the basic principle of fairness. People in the Highlands pay higher fuel prices, have longer distances to travel, with less public transport and lower incomes to pay for it. The best way to relieve this pressure would be a lower level of fuel duty for remote areas, as they have in France, Portugal and Greece.

"We have raised this issue in Parliament every year, and seen the needs of the Highlands ignored. One of our key demands has been that the Treasury should commission a proper study of the way that fuel duty discounts operate in other countries.

"It is welcome that the minister has finally agreed to do this. Any study that is objective and independent will show that such a scheme is practical, workable and right.

"We are still some way from persuading the government to cut duty, but this is a positive step. It shows that we have been right to persistently press this case and we will continue to do so until that we get a fair fuel tax discount for the Highlands."

ENDS