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Hauliers defend tax cuts as MPs slam end of escalator

8th March 2001, Page 6
8th March 2001
Page 6
Page 6, 8th March 2001 — Hauliers defend tax cuts as MPs slam end of escalator
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• by Melanie Hammond The government's decision to scrap the fuel duty escalator has come under fire from a committee of MPs, who described the move as "dangerous". The Environmental Audit Committee has also condemned the recent duty cut on unleaded petrol as a political stunt; the MPs say it sends out misleading signals to the public about the need to protect the environment The news came as CM and hard-pressed hauliers were waiting for the Chancellor to confirm a 3p/lit cut on ultra-lowsulphur diesel (ULSD) that was announced last November.

John Horam, Conservative MP for Orpington and chairman of the committee, said: "We have gone from a situation where the escalator is stopped, which is dangerous, and now fuel prices are moving down, so it is confusing the public."

Horam said he welcomed an assurance by Stephen Timms, the Financial Secretary to the Treasury that the government would reconsider the need for a fuel duty escalator if the price of crude oil falls sharply.

He claimed that only four out of 21 government departments were taking environmental legislation seriously However, a Treasury spokesman commented: 'Taxation matters are constantly under review. Yes, the escalator could come back, but only if circumstances change dramatically" Reacting to the comments, John Bridge, national chairman of the Road Haulage Association, said: "These people don't live in the real world. We're all concerned about the environment, but the fact remains that our fuel duty is twice as high as it is in other European countries. Does he want to destroy British industry in the name of the environment? The government has finally acted as if it is beginning to understand the reality facing road haulage."

• The Prkne Mildster Tony Blair, has unveiled a £100m fund to be spent developing wind, solar and wave power. Environmentalists claim the money is a pre-election offering from a government that has "failed miserably" on environmental issues.

• See Comment, page 1.


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