Chamber
Meeting of the Parliament 23 February 2012
23 Feb 2012 · S4 · Meeting of the Parliament
Item of business
Road Equivalent Tariff (Commercial Vehicles)
I am sorry, but I still have a fair bit to go and I have already taken two or three interventions.
We want to alleviate the impact of removing RET from hauliers who previously benefited from it. We have announced plans to extend RET—people who were not getting it before are getting it now. That will ensure that smaller commercial vehicles of up to 6m will benefit from RET from spring 2012. There are real benefits to people.
We are also trying to make the scheme more equivalent. In the past, the discount scheme benefited larger hauliers at the expense of smaller ones. We are trying to ensure that that does not happen in future and we are working with the haulage industry to make the scheme worth while.
As has been mentioned, we had a useful and constructive meeting with key hauliers and stakeholders, which has allowed us to discuss further ways to reduce the impact on hauliers and businesses. Following that meeting, I announced the new transitional rebate scheme. That involves additional funding. It would be interesting to see whether other parties support that additional funding or want to go further, despite the fact they were silent on the matter during the debate.
I move amendment S4M-02087.2, to leave out from “is of the view” to end and insert:
“welcomes the decision to roll RET out to other Clyde and Hebrides routes, including the Sound of Harris and the Sound of Barra; welcomes the investment of £5.3 million next year on the routes to Western Isles, Coll and Tiree; welcomes the increase in journeys to those islands of 30% that has resulted from the RET pilot, particularly in tourist journeys, notes that RET for large commercial vehicles made up around 40% of the cost of RET and that evidence from the pilot study showed that only 7% of hauliers passed the full benefits on to consumers; notes that, following discussions between the Scottish Government and local companies, investment of £2.5 million in a transitional scheme will support all hauliers regardless of the size of their business; welcomes the inclusion of vans of up to six metres in the RET scheme and the Scottish Government’s commitment to a six month study of the costs faced by island hauliers, including fuel duty and insurance costs, and the impact on the local economies and households of the Western Isles, Coll and Tiree, and looks forward to the review of ferry services that will put RET at the heart of an equitable system of fare setting.”
10:39
We want to alleviate the impact of removing RET from hauliers who previously benefited from it. We have announced plans to extend RET—people who were not getting it before are getting it now. That will ensure that smaller commercial vehicles of up to 6m will benefit from RET from spring 2012. There are real benefits to people.
We are also trying to make the scheme more equivalent. In the past, the discount scheme benefited larger hauliers at the expense of smaller ones. We are trying to ensure that that does not happen in future and we are working with the haulage industry to make the scheme worth while.
As has been mentioned, we had a useful and constructive meeting with key hauliers and stakeholders, which has allowed us to discuss further ways to reduce the impact on hauliers and businesses. Following that meeting, I announced the new transitional rebate scheme. That involves additional funding. It would be interesting to see whether other parties support that additional funding or want to go further, despite the fact they were silent on the matter during the debate.
I move amendment S4M-02087.2, to leave out from “is of the view” to end and insert:
“welcomes the decision to roll RET out to other Clyde and Hebrides routes, including the Sound of Harris and the Sound of Barra; welcomes the investment of £5.3 million next year on the routes to Western Isles, Coll and Tiree; welcomes the increase in journeys to those islands of 30% that has resulted from the RET pilot, particularly in tourist journeys, notes that RET for large commercial vehicles made up around 40% of the cost of RET and that evidence from the pilot study showed that only 7% of hauliers passed the full benefits on to consumers; notes that, following discussions between the Scottish Government and local companies, investment of £2.5 million in a transitional scheme will support all hauliers regardless of the size of their business; welcomes the inclusion of vans of up to six metres in the RET scheme and the Scottish Government’s commitment to a six month study of the costs faced by island hauliers, including fuel duty and insurance costs, and the impact on the local economies and households of the Western Isles, Coll and Tiree, and looks forward to the review of ferry services that will put RET at the heart of an equitable system of fare setting.”
10:39
References in this contribution
Motions, questions or amendments mentioned by their reference code.
In the same item of business
The Deputy Presiding Officer (John Scott)
Con
The next item of business is a debate on motion S4M-02087, in the name of Elaine Murray, on the withdrawal of the road equivalent tariff from commercial vehi...
Elaine Murray (Dumfriesshire) (Lab)
Lab
I feel a bit like the filling in a sandwich—I apologise if some members find it rather unsavoury.The Scottish Government introduced a road equivalent tariff ...
The Minister for Housing and Transport (Keith Brown)
SNP
I understand the point that Elaine Murray is making about other peoples’ points of view, but I am anxious to get to the Labour Party’s position. Is the party...
Elaine Murray
Lab
Our position is stated in the motion. We want a proper socioeconomic impact assessment. Where and when in 2007 did anybody in the Labour Party say that we we...
The Minister for Housing and Transport (Keith Brown)
SNP
We welcome this debate on what is, as I think Elaine Murray said, a vital issue for our island and rural communities. I am sure that everyone here recognises...
Elaine Murray
Lab
Will the minister give way?
Keith Brown
SNP
I want to get started—I will let the member in later on.Elaine Murray should also look at the comments of a Labour candidate in 2011 who advocated scrapping ...
Rhoda Grant (Highlands and Islands) (Lab)
Lab
The minister asks about the representations that Labour made, but the Government was absolutely silent on the issue during the budget process. Indeed, the bu...
Keith Brown
SNP
The amount being spent on this was made clear in not only the budget, but John Swinney’s autumn statement. We also subsequently made it clear to hauliers wha...
Dr Alasdair Allan (Na h-Eileanan an lar) (SNP)
SNP
I very much welcome the minister’s commitment to undertaking a proper study of the economic situation of hauliers and other companies. Will he extend that st...
Keith Brown
SNP
I find it very interesting that, as seems to have emerged today, that particular rebate will not apply to hauliers. I wonder whether we will hear more about ...
Rhoda Grant
Lab
Will the minister give way?
Keith Brown
SNP
No. I have already taken an intervention from the member—and it was not a very good one. The additional costs to CalMac alone—Interruption.
The Deputy Presiding Officer
Con
Order!
Keith Brown
SNP
The additional petrol cost to CalMac alone is around £14 million. There have been cost increases, and there is no doubt that everyone is having to bear them....
Elaine Murray
Lab
Does the minister not accept the contention that the reason that the savings could not be passed on in their entirety was because of things such as fuel cost...
Keith Brown
SNP
I have already acknowledged some of the fixed costs that hauliers have to contend with and that increase the pressures on them. All that I would ask is wheth...
Rhoda Grant
Lab
Will the minister give way?
Keith Brown
SNP
The member has had a chance, and Labour will get another one when it sums up to say whether that is its position. Our clear objective since announcing the ro...
David Stewart (Highlands and Islands) (Lab)
Lab
Will the minister take an intervention?
Keith Brown
SNP
I am sorry, but I still have a fair bit to go and I have already taken two or three interventions. We want to alleviate the impact of removing RET from hauli...
Tavish Scott (Shetland Islands) (LD)
LD
I support Elaine Murray’s motion, which is sensible and constructive, and I cannot for the life of me see why the minister is against it. When a minister has...
Mike MacKenzie (Highlands and Islands) (SNP)
SNP
Will the member take an intervention?
Tavish Scott
LD
No—I want to make progress.The nationalists have moved the policy forward, which is good, despite the fact that they ran the longest trial in political histo...
David Stewart
Lab
Will the member take an intervention?
Tavish Scott
LD
I want to finish a couple of points.I do not normally get telephone calls and representations from people in other constituencies about shipping, although I ...
The Deputy Presiding Officer
Con
You must close now.
Tavish Scott
LD
Last night I asked the minister to meet the local industry and the council to find an immediate solution, and I reiterate that request today.The Government n...
The Deputy Presiding Officer
Con
Close and move your amendment, please, Mr Scott.
Tavish Scott
LD
I am just finishing this point, Mr Scott.The debate is an opportunity for the minister to be constructive and to listen to local representations. I urge him ...