Background information for Press Release 0913

FIVE FUEL CRISIS POINTS FOR TONY BLAIR

1 Make the Environmental Case

Tony Blair must make the case for fuel taxes. We need to burn less oil if we are to fight dangerous climate change. If we want to see fewer catastrophes like floods in Mozambique and Nicaragua or hurricanes in the USA, then we must act now. Mr Blair is due to make a major environment speech in October (to the Green Alliance) and he will want to take a leading role at the world climate summit in the Hague in November. He should start speaking out now.

High fuel prices are also good for the economy, because they encourage efficient use of a scarce resource. If individuals on low incomes, or groups like farmers, face a crisis they should be given direct help by Government, not cuts in fuel taxes.

Going soft on fuel taxation is going soft on climate change.

2 Stop Panic Buying

Much of the current crisis comes from panic buying, with garages starting to run out of petrol. The Government must ensure that petrol supplies get through to garages. Pressure is needed on oil companies to ensure that supplies get through. Illegal blockades of refineries must be cleared where necessary.

3 Help Farmers and Hauliers Directly

The Government should give more help small and family farmers. They are well placed to provide the sort of high quality real food which consumers want, to contribute to the local economy and protect the environment.

The Government could also address the concerns of hauliers by joining the Eurovignette scheme, so that foreign lorries using our roads would pay extra tax.

4 Invest More in Public Transport

The Government needs to show that money from fuel duty is being spent on improving public transport, and facilities for people who cycle or walk. This crisis could have been avoided if New Labour had not stuck to Tory spending levels for its first three years in Government, while the take from fuel taxes continued to rise.

Gordon Brown is sitting on £4 billion of unexpected tax revenue because of the recent rise in crude oil prices. At least half of this money should be spent on buses and other transport services in rural areas. Fewer drivers on the road will lead to less congestion which will have enormous benefits for professional drivers.

5 Announce A Review of Motoring Taxation

The Government should announce a thorough review of motoring taxation by a Royal Commission. This should look at all aspects of taxation (including fuel duty, VED, congestion charging, motorway tolls) and at the real costs of motoring (social, environmental and economic). The best estimate is that fuel taxes raise £25 billion a year, but the environmental costs of road transport are about £42 billion a year. The polluter must pay: but taxation should be progressive: the richer the polluter the more they should pay.

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