Minimise impact of fuel costs in north, convener urges

council writes letter to chancellor

Published:

THE convener of Highland Council has urged the chancellor to stabilise fuel prices to minimise the impact of the cost of oil in the north.

In a letter to Alistair Darling, Sandy Park said the price of fuel is having a “significant detrimental impact” on the Highland economy.

He added: “As well as increased transport costs, especially for the more remote areas, indigenous industries such as fishing, agriculture, forestry and tourism are all being directly affected.

“The price of fuel at harbours in the Highlands has risen from 14p a litre in 2001 to 56p in 2008, placing severe financial strain on an already struggling fishing industry, and I would ask that you support the Scottish Government’s recent initiative to set up a taskforce as part of the action plan to help the fishing industry to counter the effect of rising fuel prices.”

The convener, an Independent councillor, also raised concerns that the spiralling fuel costs could impact on tourism – an industry vital to the Highlands.

“In addition, fuel poverty affects individual families and households in many rural areas where there is no mains gas, and oil is the most common choice of heating. Increased energy costs combined with lower average incomes, and often a more exposed climate, has a very real impact on those families.

“The increase in fuel prices is also putting rural filling stations at risk of closure.”

He called on the chancellor to consider proposals for a fuel duty regulator, under which higher oil prices would trigger low fuel duties.

He said: “Given the very serious impact of increased fuel prices on the economy of the Highlands, I would urge you to look at taking action to stabilise the fuel price against this background of increasing oil prices.

“I am aware of proposals for a fuel duty regulator, and would ask that you consider this type of initiative as a measure to stabilise fuel prices to help minimise the impact of rising oil prices on the Highlands.”