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Socialists Attack Fuel Tax

11th April 1952, Page 33
11th April 1952
Page 33
Page 33, 11th April 1952 — Socialists Attack Fuel Tax
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Which of the following most accurately describes the problem?

AFORMER Parliamentary Secretary to the Ministry of Transport, Mr. James Callaghan (Lab.), severely criticized the higher fuel duty in the House of Commons on Monday when the Finance Bill was read a second time.

The Chancellor of the Exchequer, he said, raised the tax to reduce fuel consumption and thereby Save foreign exchange. In the past three or four years, the greatest economies in the use of fuel had been those of the Road Haulage Executive in cutting out dead mileage. It had enabled transport to be run more efficiently and had saved the Chancellor a great many dollars.

The Minister of Transport was now going to extend the 25-mile limit.

There is nothing that the Conservative Government can do by way of extending the range of private-enterprise hauliers that will save petrol consumption. That will waste it," Mr. Callaghan declared. Regarding the recent London fares increase, Mr. Callaghan said that the Minister could not hide behind the skirts of the British Transport Commission, for the Government was responsible for the addition of over £1 in. a year to London Transport's expenses, which would sooner or later have the consequence of higher charges.

Mr. Charles Pannell (Lab.), also , criticized the new tax. He said that to raise the price of petrol from 2s. 2d. per gallon was a different matter from increasing it from 3s. 74d. The most inflationary thing that could be done was to increase the cost of transport. The extra duty would raise building costs by I per cent., add 21-d. per ton to the cost of coal for industrial distribution and Md. for retail distribu

tion. a.

He made a plea for a lower rate of tax upon oil fuel to check fares increases. . This would cost the • Exchequer £91m. annually.


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