Case for Islands fuel duty derogation 'compelling'

4.56.00pm BST (GMT +0100) Wed 28th Jul 2010

Orkney and Shetland MP Alistair Carmichael has reiterated the commitment of the Coalition Government to cutting fuel prices in rural areas after Treasury Minister Danny Alexander announced that he expected that pilot schemes to help reduce costs will be brought forward within months.

Speaking during a media interview he expressed the view that the case for action was very strong in island communities, and other areas where prices are already high and public transport options limited.

Commenting, Mr Carmichael said:

‘In more areas like the Northern Isles where private transport is a necessity, not a luxury, fuel is a significant outgoing and high prices make it that bit more difficult for many families to make ends meet.

‘The commitment of the coalition Government to providing drivers in rural areas with relief from high fuel prices is clear. This is an issue that Labour ducked for years – the fact that senior Ministers now expect progress within months is welcome news indeed.

‘While I would not seek to pre-empt any announcement from the Treasury, as Danny suggested in his interview yesterday there is a compelling case for island communities to be allowed to benefit from the fuel duty derogation pilot schemes.’