News / Fuel discount just months away
THE GOVERNMENT discount on fuel duty that will save island communities 5p on each litre of petrol and diesel should be in place by spring, according to northern isles MP Alistair Carmichael.
The derogation has been discussed within the European Commission and is now waiting for the Council of Ministers to “sign it off”, the Liberal Democrat MP said.
The government is now examining how to make sure the discount does not hit petrol stations in the pocket.
Civil servants are looking at creating a fund to recompense retailers rapidly and reduce how long they wait for the discount to be repaid by the Treasury.
The 5p per litre discount will operate as a pilot scheme in all the Scottish islands as well as the Isles of Scilly off Cornwall.
Mr Carmichael said: “News that the EU Commission are due to sign off formally the derogation very soon will be welcome in the northern isles. This is the final bridge to cross at the EU.
“I know that there has been some frustration locally, which I share, that the process has taken as long as it has. I understand, however, that our wait has been significantly less than was the case for France when their government applied for a similar derogation.
“We should also not forget that the UK government’s application will mean that motorists in the northern isles are getting the largest derogation yet granted by the EU.
“Once the derogation has been signed off by the commission then it will be full steam ahead to get the details of the scheme settled.
“I know that many petrol retailers are worried that the scheme could cause them cash flow difficulties. Treasury ministers have told me they share my view that this would be unacceptable and the scheme will be constructed to allow them to receive appropriate money up front.
“It is worth remembering that the Conservatives did not support a duty derogation in opposition while the Labour party made ridiculous excuses to avoid taking the necessary action.
This scheme is only happening because Liberal Democrats within government are making it happen.”
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