Hydrocarbon Oil Duties

Part of Orders of the Day — Finance Bill – in the House of Commons at 5:45 pm on 27 April 1999.

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Photo of Barry Gardiner Barry Gardiner Labour, Brent North 5:45, 27 April 1999

I concluded the last part of my remarks with the words sailing dangerously near to hypocrisy". I used to work in shipping. It is clear to me from my professional experience that those who sail close to things usually end up with a shipwreck. Certainly, that is what has happened to the Conservative party since this whole misguided campaign began. Its integrity has gone down to Davy Jones's locker, hand in hand with its memory.

It has been argued that the extra 1 per cent. put on the escalator by this Government has made the crucial difference to the industry. I asked the House of Commons Library to provide me with the differential between the cost of diesel today and the cost that would have obtained had the Conservative's 5 per cent. escalator continued on target. The answer was just 4.29p per litre—but that figure relates only to the escalator, and, as hon. Members know, the escalator was on top of inflation. What, then, could the industry have anticipated under the Conservatives had they remained in office?

At the time of the last Conservative Budget, the underlying rate of inflation was 2.7 per cent.; today, under Labour, it is 2.1 per cent. That difference of 0.6 per cent. means that the true differential in the price of diesel between Conservative and Labour would be not 4.29p, but just 1.7p. The party which, during its term of office—according to the Library—imposed an increase totalling a massive 46.6 per cent. has dared to accuse this Government of betraying the road haulage industry over an increase of just 1.7p. If that is betrayal, Goneril and Regan loved their father, Iago never stole a handkerchief, and Brutus was nowhere near Rome on the Ides of March.

My right hon. Friend the Chief Secretary spoke of a balance to be struck between environmental concerns and the industry—