Welcome for PM’s fuel price pledge

POLITICIANS and business leaders in rural Yorkshire have warmly welcomed the Prime Minister’s call for his Government to “move swiftly” forward with plans to extend a fuel discount scheme to motorists in the region.

David Cameron said on Saturday that “work is underway” for rural Yorkshire to be made another pilot area for the 5p-a-litre fuel discount scheme enjoyed by motorists in the Scottish islands, and he hopes plans “progress swiftly” to deliver a deal for the region.

The Yorkshire Post is campaigning for a fuel discount to be offered to rural motorists as part of its Give us a Fair Deal campaign, which marked its one-year anniversary at the weekend.

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Responding in this newspaper on Saturday, the Prime Minister wrote: “Work is underway for rural Yorkshire to be made another pilot for the fuel discount, and I hope we will see plans progress swiftly.”

Despite those encouraging words, however, it was becoming clear last night that the battle is far from won, with the Treasury markedly lukewarm to the plan.

“Nothing is ruled in or out beyond the rural fuel duty pilot (in Scotland), which is still underway,” a spokeswoman said.

But Thirsk and Malton MP Anne McIntosh – who chairs Parliament’s environment and rural affairs committee and has led the campaign to bring a rural fuel discount to North Yorkshire – said winning the backing of Number 10 was a major step towards bringing down pump prices in her constituency.

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“I have already been to see the Chancellor and (Treasury Minister) Chloe Smith on this issue,” Ms McIntosh said.

“I hope the campaigning we have done is paying off, and I’m delighted we’ve got the backing of the Prime Minister.

“Ryedale has the highest petrol prices in the country, and it is not just having an impact on residents and businesses – it is also hitting public services hard. Think of how much it costs the district councils collecting waste; the police force; the ambulance service.”

The Coalition agreement of May 2010 makes clear the new Government’s concrete support for fuel discounts in rural areas and states: “We will investigate measures to help with fuel costs in remote rural areas, starting with pilot schemes.”

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But two years on, only a single such pilot has been launched, covering the distant Scottish isles.

Barry Dodds, chairman of the North Yorkshire local enterprise partnership, said a similar scheme in rural Yorkshire would be just the tonic the local economy needs.

“I think it is exactly what we need because of the disadvantage that we have in rural areas – you have to travel for everything, but the fuel costs more,” he said.

“This is a good way to help the rural economy by giving it that little boost forward. A discount would give a bit of an extra kick.

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“We have got to grow the whole of the UK economy. The rural economy has an opportunity to grow, so by giving it that little bit of an extra bite we can play our part in driving forward the recovery.”

In addition to winning the backing of the Treasury, any further fuel discount scheme must also be approved by the EU in Brussels, which has strict rules regarding state intervention in markets.

Skipton and Ripon MP Julian Smith said the key will be to keep the pressure on Ministers.

“I was absolutely delighted to read the Prime Minister’s words and I will be following this up in Westminster this week,” he said. “We all think it looks very positive for our campaign.

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“We have got to make sure we continue to fight for North Yorkshire to have this pilot, for the sake of families struggling with the cost of living and also for our many businesses.

“North Yorkshire needs to be treated as a special case because of its rurality. In an urban area you have opportunities for the bus and the train. If you are a business in a rural area you do not really have any options.

“During this period of really high fuel prices I think this is an extremely important idea.”