INCREASED OIL PRODUCTION WILL NOT SHIFT FUEL PRICE

11.33.33am GMT Mon 2nd Jun 2008

Jim Hume, Liberal Democrat MSP for the South of Scotland, has criticised the Prime Minister Gordon Brown for his lack of action on fuel prices. The MSP also slammed the Prime Minister's suggestion that increasing North Sea oil production would help the hard pressed haulage and fishing industries, calling it 'a smokescreen for government inaction'.

Commenting as the Prime Minister met leaders of the U.K. oil and gas industry in North East Scotland, Jim Hume said:

"Gordon Brown's plan to increase North Sea oil production will not help the hard-pressed haulage and fishing industries. It would not shift the price of fuel by a single penny.

"Gordon Brown must announce urgent measures to make a real difference.

"The Prime Minister should urgently reduce fuel duty rates for Scotland's rural communities. He should also announce that he will not proceed with the two pence increase in fuel duty in the current circumstances.

"Diesel in Britain is already amongst the most expensive in Europe. In most other European countries diesel is significantly cheaper than petrol. This high price is a direct result of Gordon Brown's taxation policies.

"There are clear steps which the Government should take urgently to tackle the current fuel price crisis. The Prime Minister must act now. Today's showcase meeting with oil industry leaders is simply an attempt to divert attention from the Government's failure to act.

The MSP continued:-

"I have been campaigning on fuel duty for some months now because constituents in the South of Scotland are really struggling to cope with the high cost of fuel for their cars and their homes.

"The Scottish Government needs to get behind the Scottish taxpayer and put pressure on the Prime Minister and Chancellor to deal with the problem in a way that will actually help people.

"We urgently need a reduction in fuel duty and we need a clear assurance that the 2p October fuel duty increase will not go ahead."