Fuel duty won't be frozen

Tuesday 06 November 2018

Efforts to keep Guernsey's fuel duty at its previous rate of 67p per litre have been defeated so far, with the States agreeing it can stay at the new rate of 70.1p despite what seems like widespread public opposition.

With fuel duty increasing at staggering rates over recent years, the level of public anger towards the price we pay at the pumps appears to have also risen at a pretty even rate.

Pictured: Deputy Gavin St Pier is hoping the States will support his 2019 Budget proposals during this week's States debate.

When Deputy Gavin St Pier presented his 2019 Budget proposals last month, he said petrol duty would go up 3p per litre, to 70.1p for a litre of unleaded or diesel. That change came in immediately, as it always does, to prevent any stock piling of fuel at the lower rate of duty.

However, this year there seemed to be a growing desire by some States members to reduce the amount of duty motorists pay with two amendments to the Budget both debated by States members this afternoon - both aimed at setting fuel duty at 67p per litre rather than 70.1 pence.

Pictured: Deputy Jennifer Merrett was defeated in her efforts to get fuel duty frozen.

Deputies Jennifer Merrett and Rhian Tooley had wanted to effectively freeze fuel duty, while also wanting the States to set up a 'Fuel Duty Review Committee' which would have had the job of considering and reviewing the 'best way of raising sustainable revenues in respect of motor vehicles, fuels and otherwise in relation to motoring in future, with the object of maintaining such revenues of the States at their current levels, taking into account the ongoing reduction in income derived from fuel duty, and based as far as possible on the 'user pays' principle.'

Pictured: Deputy Rhian Tooley.

Deputy Tooley changed her mind about seconding the amendment, and also cast the final and deciding vote against the proposals - meaning the amendment was lost by 19 votes to 20. Deputy Matt Fallaize seconded the amendment during the debate so it could still be discussed and voted on. 

(Pour - Deputies Gollop, Leadbeater, Mooney, Lester Queripel, Meerveld, Merrett, Inder, Lowe, Smithies, De Lisle, Yerby, Green, Paint, Oliver, Prow, Ferbrache, Kuttelwascher and Alderney States Members Jean and McKinley. Contre - Deputies Le Clerc, Parkinson, St Pier, Trott, Stephens, Fallaize, Hansmann Rouxel, Laurie Queripel Brouard, Dudley Owen, Langlois, Dorey, Graham, Le Tocq, Roffey, De Sausmarez, Soulsby, Brehaut, Tindall and Tooley.) 

Another amendment, also seeking to freeze fuel duty was also lost. Deputies Peter Ferbrache and Jan Kuttelwascher saw their attempt at halting the rise in petrol prices defeated by 16 votes to 23.

(Pour - Deputies Gollop, Leadbeater, Mooney, Lester Queripel Meerveld, Inder, Lowe, Green, Paint, De Lisle, Oliver, Prow, Ferbrache and Kuttlewascher and Alderney States Members Jean and McKinley. Contre - Deputies Le Clerc, Parkinson, Merrett, St Pier, Trott, Stephens, Fallaize, Hansmann Rouxel, Smithies, Laurie Queripel, Dorey, Graham, Le Tocq, Brouard, Dudley Owen, Langlois, Yerby, Roffey, De Sausmarez, Soulsby, Brehaut, Tindall and Tooley.)

The debate will continue on the 2019 Budget tomorrow, and while further attempts could be made at freezing or reducing fuel duty, it is looking increasingly unlikely the States will do that, after Deputy St Pier warned any changes to the budget which will end in reducing the amount of revenue raised by the States will have an impact elsewhere including in forcing the States to make unexpected cuts elsewhere to ensure the books remain balanced. 

Pictured top: Fuel prices will stay at their current price after efforts to get fuel duty frozen at the rate seen earlier in 2018 were defeated in the States this afternoon. The 2019 Budget will still need overall approval which is likely to come tomorrow.