Contribution
It is a pleasure to serve under you, Ms Furniss. I congratulate my hon. Friend the Member for North Devon (Ian Roome) on securing this debate and making a very strong case, of which I hope the Minister will take heed.
I will return to some of the prehistory, because I have campaigned on this issue for so long. I congratulate my hon. Friends the Members for North Cornwall (Ben Maguire) and for Honiton and Sidmouth (Richard Foord), and the hon. Members for Strangford (Jim Shannon) and for Na h-Eileanan an Iar (Torcuil Crichton), for reinforcing the very strong points advanced by my hon. Friend the Member for North Devon in his opening remarks.
My hon. Friend the Member for Newton Abbot (Martin Wrigley) made an interesting intervention about useful pump comparison apps and sites. One of the places that was originally designated to receive rural fuel duty relief was the Isles of Scilly in my constituency, and I campaigned for it at the time. When the relief was announced in March 2012, it was very welcome. However, I am afraid that having comparison apps on the Isles of Scilly is pretty meaningless because there is only one pump and no competition. I do not think it can be argued that the monopoly supplier is taking advantage of that monopoly, because it is very much keyed into the community and has been running it as a public service.
When the relief scheme was originally established, I asked the supplier, Ian Sibley of Sibley’s, which provides fuel for road use as well as for marine use on the Isles of Scilly, how he obtained his fuel. He basically takes tanks over to the supermarket in Penzance and has them ferried back, so he is buying fuel at retail prices and selling it on. We can see that it is and has been impossible for him and his business to be in any way competitive in those circumstances, and he has had to transfer the fuel to local people on the islands without taking much of a cut to cover the costs of freight and providing the service. We can see how difficult it is to provide this service in such locations.
It is also worth reflecting on the justification for the relief, because it is all about equity and fairness. I know that some people will say, “Hang on, are you not campaigning to combat climate change?” Indeed I am, as are others present here today. Those same people may ask if it does not contradict everything we are campaigning for when we say that we want to reduce fuel costs. It is not.
This is about geographic equity across the country. It is about wanting to make sure that in addressing the cost of living crisis, which has been going on for many years, we also address the geographic inequity in the prices that end up being charged in such remote and rural locations. It is not relevant to undermine the case in any way by comparing it with the vital campaign to combat climate change.
To go into the prehistory of it, on 8 January 2002 and 15 January 2003, I brought debates to the Westminster Hall Chamber on the issue of rural and island transport. Indeed, my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) and Alan Reid from the Scottish islands made a very strong case for the importance of seeking equity in this regard, not only in terms of fuel duty but in relation to private car users and to community bus users and projects.
After that campaigning, I was pleased that the coalition Government agreed with the Liberal Democrat policy of investigating, as they put it, measures to help with fuel costs in remote rural areas, starting with pilot schemes. Indeed, in October 2010, they announced a 5p fuel duty discount for Scottish islands and the Isles of Scilly. In those days, that of course required EU approval—even post Brexit, any kind of parafiscal support or state-aid issue still requires some consideration and regulation, because it needs to meet competition rules.
Obviously, the case for the discount was made—the unfairness was acknowledged—and in March 2012, it was brought in. The pilot schemes were established, including on the Isles of Scilly as I mentioned. In October 2013, the project was, as promised, reviewed and it was identified to be working well, so the Government announced that they were going to expand the schemes to 17 additional rural areas in May 2015. I raised a petition to make west Cornwall one of those areas. It got 2,500 signatures, and I presented it to Parliament in December 2013, but unfortunately the Government did not agree to do that in August 2014, which was a pity. I do hope the Government will look at an extension.
There is still a cost difference between the Isles of Scilly and the mainland in excess of 30p per litre. It is a very difficult administrative scheme to follow through. It does create some administrative pressures on the small businesses that operate it, but I hope the Minister will accept the request to review both the amount of the discount and the geography on the basis of evidence of need.