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Diesel hike in Highlands

5th February 1998
Page 11
Page 11, 5th February 1998 — Diesel hike in Highlands
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Which of the following most accurately describes the problem?

• Angry Highlands and Islands hauliers are urging the Government to reduce fuel duty in rural areas so they do not face "cripplingly higher" diesel prices than their Southern competitors.

Prices of over 70p/lit are common in rural Scotland, a good 10p more than is charged in the cities of Glasgow and Edinburgh, says David Wood, director of Woody's Express Parcels based in Stornoway.

Ile says that 90% of local hauliers have to bunker fuel and pay for their -diesel using agency cards. "The difference is

so vast you have to. If not, you cannot compete," he says.

Combined with recent rises in ferry prices Wood says these fuel prices will cripple local hauliers unless the Government takes action sum.

Norman Gordon of John Mackay & Sons from the Isle of Harris agrees that fuel duty needs to be reduced, but he does not expect the Government to act.

Alison McGee, the chairman of pressure group Highlands and Islands Hydrocarbon Fuel Action Group, is compiling evidence on the effects of high diesel prices on rural Scotland's businesses and society. "Local hauliers are being made uncompetitive," she says.

McGee plans to compile a report to send to the Scottish Office on the issue. Like local hauliers, she would like to see a reduction in fuel duty or Government subsidies for local businesses who use vehicles.