Plea to Chancellor on Fuel Costs

The Convener of The Highland Council, Councillor Sandy Park, has written to the Chancellor of the Exchequer, the Rt Hon Alistair Darling, to ask him to ease the burden of spiralling fuel costs in the Highlands.

This follows the growing concern of Highland Councillors at the impact on Highland residents of increasing fuel costs.

The Convener wrote: “As you will be aware, the increasing price of fuel is having a significant detrimental impact on the economy of the Highlands. As well as increased transport costs, especially for the more remote areas of the Highlands, indigenous industries such as fishing, agriculture, forestry and tourism are all being directly affected by the recent rises in fuel prices. The price of fuel at harbours in the Highlands has risen from 14p per litre in 2001 to 56p per litre 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 task force as part of the action plan to help the Scottish fishing industry to counter the effect of rising fuel prices. 

“Agriculture and forestry are also directly impacted by rising fuel prices, and in many cases these areas are operating on the verge of economic viability. Both areas provide valuable employment in the more rural areas of the Highlands and it is vital that measures are put in place to help these industries continue on a sustainable basis.
 
“Tourism provides employment for around 27% of the highland population and concerns have already been expressed about the declining numbers of tourists visiting the highlands. The fuel price in some parts of the Highlands is significantly higher than the national average, and this will certainly influence the choices made by tourists. 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. Already with higher than average prices, the recent increases place an increased financial burden on borrowing and cash flow, and there are real concerns that some of these filling stations may close, which would result in local communities having to travel further for fuel, increasing carbon emissions and adding unnecessary costs to the already stretched budgets of families.
 
“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.”

The Convener has copied his letter to the Conveners of other Highland and Islands local councils, who strongly support his approach as they also face very similar and serious difficulties as the result of the increases in fuel costs.
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