Stop this fuel tax disgrace - duty hike must be postponed

Today we've renewed our calls for a freeze on fuel duty ahead of the Budget on Wednesday.

Fuel duty is set to rise by a further 2.55 pence per litre from April 2010 (1% above the rate of inflation) which will cost the average family an extra £200 a year and cause further problems to small businesses already struggling with higher fuel duties. Plaid has insisted that this duty hike should be postponed.

Campaign organisations such as the Road Haulage Association and local dairy farmers and contractors have come out in support of our calls for a fair fuel duty regulator. Under such a plan, an unexpected spike in petrol prices would lead to a freeze on fuel duty.

MPs from Plaid and the SNP have tabled an Early Day Motion urging a freeze on fuel duty and repeating calls for the establishment of a fuel duty regulator.

This will be the third time in as many years I have called for the introduction of a fuel regulator. It is the people of Aberconwy that will feel the pinch again if this fuel hike goes ahead. This will affect everybody from our dairy farmers, small businesses, and our struggling tourism industry. But as ever, it is always those who can afford the least who will be hit the hardest.

This is an issue that affects all parts of Aberconwy. Hard-working families feel the struggle of trying to run a car, but also these sky-high fuel taxes also impact on businesses, on prices in stores as costs rise to deliver food and other products to the shops, on the emergency services and on other public services.

Many people do not realise that when the VAT was decreased, the Westminster Government stuck an extra tax on fuel to compensate. That extra tax is still there and we are now facing another hike on top of it. This is deceitful and underhanded and I urge the Chancellor to come clean and give our people a break.

I'm pictured here with agricultural contractor Arwyn Vaughn who like every rural business will be badly affected by this fuel hike.

More from my colleague, Plaid's Parliamentary Leader Elfyn Llwyd MP, follows.

Phil Edwards

Rising fuel duty prices are already crippling industry – but it is also an unfair burden on struggling families, small businesses, rural areas in particular, and also sectors such as the emergency services will be hit especially hard by this.

This is just punishing ordinary people for a banking system failure that the London government helped to create. If the Chancellor needs to raise revenue he should do this by doing more to address tax avoidance by the affluent.

He needs to go much further than he has so far in introducing a genuinely progressive tax system. For example he could abolish the pension tax relief for the wealthy - not simply reducing it - and introduce he higher rate of tax at £100k not £150k. 

We will continue to fight this fuel hike and urge the introduction of a fuel duty regulator at the Budget to ensure price stability as well as lower fuel taxes.

Elfyn Llwyd MP

Notes:

Plaid Cymru has long campaigned for a new mechanism to cap petrol prices. Together with the SNP, a motion to amend the Finance Bill in 2008 to create a Fuel Duty regulator, was voted down by Labour.

1. FUEL DUTY Early Day Motion, tabled this week by Plaid’s Adam Price MP and the SNP’s Stewart Hosie MP, reads:

That this House notes the recent unexpected spike in the price of petrol at the pump, recognises that unexpected increases in the price of fuel impacts significantly upon hard-working families, businesses of all sizes, seriously affects those living in rural areas who have no transport alternative except private cars, and impacts upon the costs of public services; recognises the need for greater research, development and support for reducing our dependency upon oil for everyday use, but in the short-term calls for a freeze on fuel duty in this Budget to protect those affected by the current price spike and further calls for a fuel duty regulator to prevent unexpected spikes in prices from affecting hard working families in future.

2. SNP/PC motion last vote on 2 July 2008 (Finance Bill) – 308 to 14. Labour voted against, Cons and Lib Dems abstained. PC and SNP voted for. 2 weeks later, 16 July 2008, Tories put down a similar motion.

Plaid calls for Milk and Supermarket Ombudsman after Aberconwy farm meeting

Following a campaign led by Phil Edwards in support of Aberconwy dairy farmers, Plaid Cymru has stepped up calls for a milk and supermarket ombudsman to help dairy farmers ensure a fair price for their pint of milk, laying an Early Day Motion to back the findings of a recent Competition Commission report.

Plaid’s DEFRA spokesperson at Westminster, Elfyn Llwyd MP, has this week laid an EDM after a meeting with farmers at Eglwysbach with Plaid Cymru’s Aberconwy candidate, Phil Edwards and receiving a petition signed by a thousand people on the issue.

Mr Llwyd said:

“I have been involved with this campaign for some years now, but the testimony of the Eglwysbach farmers surprised even me.

“Ten dairy production farms per week have closed in England and Wales in the last five years, showing the crisis felt in the industry.

“Meanwhile the supermarket industry has grown to encompass 75% of grocery sales within just four major companies who have a stranglehold on the market.

“The UK government has begun to recognise the issue but we have to tackle this problem in a big way now.

Phil Edwards added:

“After a number of meetings with dairy farmers, I launched a petition at the Royal Welsh Show in 2009 to support our farmers because many of them are not even receiving cost price for their products. We must take positive action to stop this haemorrhaging from the dairy industry before it’s too late.

“The dairy farming industry is one of the backbones of Wales but they have been scandalously let down and have operated with virtually no protection for many years under almost cartel-like conditions from the major suppliers.

“We must stand up for them, we need a milk and supermarket ombudsman with real teeth that will ensure fair play for our farmers.”

EDM 1035 ELFYN LLWYD MP

SUPERMARKET OMBUDSMAN AND DAIRY FARMERS

That this House welcomes the announcement of the introduction of a supermarket ombudsman as called for by the Competition Commission report of August 2009; notes that 75 per cent. of UK grocery sales are from supermarkets; further notes that the amount of money that dairy farmers receive for their milk from the supermarkets often does not cover the cost of production; also notes that the price farmers get for a pint of milk has fallen in real terms whilst their costs of producing milk continue to increase, and that England and Wales are losing 10 dairy production holdings a week; believes that this is putting the Welsh dairy industry at risk as well as the viability and sustainability of Wales' rural communities, including the care of the countryside and wildlife; and calls for the supermarket ombudsman to be formed as soon as practicable and for its responsibility to include ensuring a fair price and a fair and level playing field for dairy farmers against the purchasing power and market share of supermarkets.

Plaid demands investigation into windfarm compensation payments

Following concerns raised by Plaid’s Aberconwy candidate Phil Edwards about the compensation process for the Gwynt y Mor windfarm off Llandudno, Plaid Cymru’s leader at Westminster, Elfyn Llwyd MP, has laid an Early Day Motion demanding an investigation.

In the EDM, Mr Llwyd argues that the present system often favours international companies rather than the local councils who should be benefiting from the compensation schemes.

Elfyn Llwyd MP said:

“I am calling for an investigation of the current compensation system to ensure that local authorities and communities get the best possible deal when windfarms are erected so that they can address any negative impacts which may arise.

“At present, international energy companies are in a position where they can string out agreements on compensation over a long period of time and manipulate the planning process until it becomes a done deal on their terms.

“I want to see a situation where local authorities can get a fair deal for themselves and their tax-payers.”

Phil Edwards added:

“I am concerned that the amount of compensation paid to some communities and the processes undertaken by the multinationals.

“In the case of the Gwynt y Mor wind farm there have been interminable delays in the discussions between the Government, Conwy County Borough Council and nPower Renewables over the amount of money to be given to the Communities Fund.

“This is money that would go back into our local communities, but is being delayed because there is no efficient and fair method to ensure that the right amount of compensation is paid out by the company involved.

“As we know only too well here in North Wales, Plaid Cymru politicians have been standing up for our communities in Aberconwy. We're on their side in this struggle against the global giants and big business.”

EDM 1036 ELFYN LLWYD MP

WIND TURBINES AND THE COMMUNITIES FUND

That this House notes the ongoing discussions between Conwy County Borough Council and npower Renewables regarding the amount of money to be contributed to the Communities Fund as a result of the construction of the Gwynt y Môr field of wind turbines close to the North Wales coast; further notes that similar discussions are ongoing around the United Kingdom; expresses concern that the bargaining ability of local authorities and communities is dependent upon the stage of the planning process at which negotiations are taking place; finds it unfair that international companies can benefit from prolonged discussions over planning issues and find themselves in a stronger bargaining position so that they pay a reduced contribution to the Communities Fund; and calls for an investigation which will make recommendations into the best way to ensure a just and equitable system that will assist local authorities and communities in getting the best possible deal from such negotiations so that communities can have the best opportunity of addressing the negative impacts such projects can have on an area and local tourism industries.

Aberconwy is not for sale

As the Conservatives gather for their party conference in Llandudno we've challenged David Cameron to come clean over which candidates' campaigns have directly benefited from the funds of their dodgy non-dom donor Lord Ashcroft.

We urge the Tories to be honest with voters - tell us where Lord Ashcroft’s millions have been targeted. Unless they do, the Conservatives actions are likely to further damage public confidence in Westminster politics.

My colleague, Plaid’s Westminster leader Elfyn Llwyd MP and the SNP’s Westminster leader Angus Robertson MP have written to Tory party leader David Cameron calling for answers and a breakdown of where and how much money has been poured into campaigns.

Here's what Elfyn has had to say:

The Conservatives have to come clean on which Tory candidates are being bankrolled by Ashcroft’s millions. As they meet in Llandudno, I think the people of the Aberconwy constituency deserve to know how this man’s personal fortune is being used by the Tories in an attempt to buy their votes.

Aberconwy is not for sale. Voters deserve the truth, attempting to buy them is down right insulting.

Mr Cameron should put his money where his mouth is. Will he practise what he preaches on transparency in politics?

Ashcroft does not play by UK rules but is still using the millions of pounds at his disposal to try and buy this election for the Conservatives.

My guess is that many Conservative candidates in Wales and elsewhere are benefiting both directly and indirectly from Lord Ashcroft’s millions – either through it being pumped into constituencies or through campaigns at their central office in London.

While this man won’t pay taxes here, he’s perfectly happy to try to dictate how ours would be spent.

Welsh voters will not accept being played like this. I just hope that people will make a stand and send a clear message that we want people representing us who will stand up for our communities – rather than the candidates who has the biggest cheque-book.

Angus Robertson MP added:

Bankrolled and run by London, Tory candidates cannot claim to speak up for local interests. Only the SNP will champion Scottish communities.

The text of the letter to David Cameron reads:

It has now been confirmed that Lord Ashcroft broke an undertaking to pay full UK tax in order to become a member of the House of Lords ten years ago.

Since then, he has donated more than £5 million to the Conservative Party, much of which has been spent in target seats throughout the United Kingdom.

Given the public interest in this matter and your repeated calls for disclosure and transparency in politics, could you please confirm how much money from Lord Ashcroft’s donations have been used to fund constituency campaigns in Scotland and Wales and in which seats?

Phil and Elfyn seek solution to Llanrwst football pitch problems

Elfyn Llwyd MP is to take up the problem of Llanrwst United’s waterlogged football pitch with senior officers of Conwy County Borough Council following a meeting arranged by Phil Edwards.

Mr Llwyd was recently invited to see for himself the damage to the pitch which has allegedly got worse since the construction of new drainage systems under the road next to the new Hafan Gwydir development.

Such is the state of the pitch that Llanrwst United’s junior team is now forced to play in Betws-y-Coed.

Cllr Phil Edwards, Plaid’s Deputy Leader on Conwy County Borough Council, arranged for Elfyn Llwyd to meet local councillors Siân Lloyd-Jones and Ian Jenkins at the site along with John Berwyn Pritchard, Chairman of Llanrwst United’s Junior Section.

Elfyn Llwyd MP said:

“We cannot go on with a ruined football pitch and teams with nowhere to play. John Berwyn has every right to complain about this sad state of affairs and I will be writing to senior officers in Conwy to ask for their urgent assistance in sorting this problem out.

“I’ve had a similar case in Blaenau Ffestiniog where the football pitch had become waterlogged and unusable. That’s now been fixed and I hope the experience of putting that right will help in efforts to resolve this problem in Llanrwst.”

Phil Edwards added:

“I’m pleased that our local MP is now to take up the case. I hope that Elfyn’s involvement and his experience with similar issues in Blaenau will help bring about an early solution to this problem.”