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Fuel bills are 'burden' on firms Fuel bills are 'burden' on firms
(1 day later)
Rising fuel costs are placing an intolerable burden on business, the Scottish Chambers of Commerce has said.Rising fuel costs are placing an intolerable burden on business, the Scottish Chambers of Commerce has said.
Its chief executive Liz Cameron was speaking ahead of a Holyrood debate which will hear calls for a fuel price regulator and help for rural areas. Its chief executive Liz Cameron spoke as a Holyrood debate heard called for a fuel price regulator and help for Scotland's rural areas.
The SNP's Western Isles MSP Alasdair Allan is behind the members' motion to be heard later. The SNP's Western Isles MSP Alasdair Allan, who brought the member's debate said rural businesses were at risk.
He is being backed by SNP MSPs and a number of Liberal Democrats, including former transport minister Tavish Scott. The calls came as the prime minister urged oil industry leaders to come up with ideas for improving supplies.
Mr Allan said Scottish Government figures had shown that the Treasury would make an additional £4bn in revenues this year due to higher prices at the pumps. Gordon Brown and Chancellor Alistair Darling were asking industry leaders in north east Scotland what help they would need from the government - such as investment in new infrastructure or oil exploration.
"While the Treasury makes millions from soaring revenues more and more businessmen, farmers, fishermen and families are finding themselves out of pocket," the MSP said. 'Global problem'
Ms Cameron said high fuel prices were being felt especially hard in remote and rural areas of Scotland - particularly in island communities. Mr Brown said: "This is not just a national problem. It is a global problem of supply and demand, not just in the short-term but the medium-term and the long-term.
MOTION IN FULL "That the parliament notes that the price of diesel is now over £1.30 in the Western Isles and across Scotland's island and remote communities, making it probably the most expensive diesel in the western world; further notes that fuel costs now represent an ever increasing burden in the Western and Northern Isles, not least for businesses and fishermen, some of whom report 80% increases in diesel costs in the last two years; notes that the main company delivering fuel to the islands deposits fuel at differing costs at different ports on the west coast despite the fact that the same vessel is used; notes the irony of an oil-producing nation putting its motorists, businesses, fishermen and rural businesses in this impossible position, and finally notes the various measures that exist in parts of France, which make cuts in fuel duty in the remotest areas." "Therefore what your ideas and insights are, to contribute to getting the right balance between supply and demand, is going to be very useful to us."
She added that the price of diesel in particular had become a "serious concern". Meanwhile, First Minister Alex Salmond challenged Mr Brown to spell out how Scotland would benefit from the extra revenues generated by high oil prices.
Ms Cameron said: "High diesel prices are having a detrimental effect not just on Scottish hauliers and the logistics sector, but also directly and indirectly on almost every business the length and breadth of the country. The SNP estimated that the UK Treasury would receive an additional £4bn from North Sea oil production this year.
"Rising fuel and transportation costs are placing an intolerable burden on many businesses. Ms Cameron, of the Scottish Chambers of Commerce, said high fuel prices were being felt especially hard in remote and rural areas of Scotland - particularly in island communities.
"The effect of this is that either a considerable squeeze is being put on margins or that these costs have to be passed on to customers through increased prices." She said the price of diesel in particular had become a "serious concern".
Ms Cameron said: "High diesel prices are having a detrimental effect not just on Scottish hauliers and the logistics sector but also directly and indirectly on almost every business the length and breadth of the country.
"Rising fuel and transportation costs are placing an intolerable burden on many businesses."
The two main UK fishermen's federations have joined forces to press for immediate government action on fuel prices to ensure "the viability of the fishing fleet".
The Scottish Fishermen's Federation and the National Federation of Fishermen's Organisations have called for assistance of the kind being given to French and Spanish fleets.
Mr Allan's Holyrood motion was backed by SNP MSPs and a number of Liberal Democrats, including former transport minister Tavish Scott.
Mr Allan said: "While the Treasury makes millions from soaring revenues more and more businessmen, farmers, fishermen and families are finding themselves out of pocket."
On Tuesday, hundreds of lorry drivers, including some from Scotland, protested in London and along the M4 in Wales.On Tuesday, hundreds of lorry drivers, including some from Scotland, protested in London and along the M4 in Wales.
A convoy of trucks closed the A40 into the UK capital as hauliers parked up and went to join a rally in central London before petitioning 10 Downing Street. 'Poverty exacerbated'
SNP politicians said they were keen to see the UK Government abandon the planned 2p rise in fuel duty.SNP politicians said they were keen to see the UK Government abandon the planned 2p rise in fuel duty.
They also want an application to be made to Europe asking for permission to cut fuel duty in rural areas and to see the introduction of a fuel price regulator.They also want an application to be made to Europe asking for permission to cut fuel duty in rural areas and to see the introduction of a fuel price regulator.
There will be further pressure on Westminster if Highland Council agrees to write to the Chancellor of the Exchequer, Alistair Darling, expressing its concern about increasing fuel prices on the Highland economy and council services. There will be further pressure on Westminster if Highland Council agrees to write to the chancellor expressing its concern about increasing fuel prices on the Highland economy and council services.
The authority's transport environmental and community services committee will debate the issue on Thursday.The authority's transport environmental and community services committee will debate the issue on Thursday.
'Poverty exacerbated'
The council has revealed that in the current financial year it expects to face an increased fuel bill of £725,000.The council has revealed that in the current financial year it expects to face an increased fuel bill of £725,000.
Councillor John Laing said: "Increased fuel prices will affect individual families - and households in rural areas are more likely to experience fuel poverty which is exacerbated by rising energy costs, and in particular oil prices. Councillor John Laing said: "Increased fuel prices will affect individual families - and households in rural areas are more likely to experience fuel poverty which is exacerbated by rising energy costs, and in particular oil prices."
"Oil is one of the most common choices for heating in rural areas not covered by the mains gas network, and large price increases can affect the ability to pay heating costs. Meanwhile, in the Scottish Borders the rise in fuel prices has had an impact on taxi fares.
"This, coupled with lower average incomes, and often a more exposed climate, can have a significant impact on the household budget." The traffic commissioner has ruled that due to increasing costs there should be a 7% rise in minimum fares almost double the 3.9% originally proposed by the local council.
Mr Allan's motion, which will debated at 1700 BST on Wednesday, is being supported by Bill Kidd, Tavish Scott, Kenneth Gibson, Liam McArthur, Bob Doris, Bashir Ahmad, Roseanna Cunningham, Alex Neil, Stuart McMillan, Shirley-Anne Somerville, Brian Adam, Jamie Hepburn, Christina McKelvie, Jamie Stone, Gil Paterson, Dave Thompson, Michael Matheson, Joe FitzPatrick.