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Meeting with Scotland's fuel coalition
17/06/2008
First Minister Alex Salmond met leaders of NFU Scotland, the Scottish Fishermens Federation and the Road Haulage Association in Scotland, at Bute House in Edinburgh today to discuss the position on fuel supply.
Afterwards, the FM said:
"This was an extremely productive meeting with Scotlands fuel coalition, comprising the Scottish Fishermens Federation, NFU Scotland and the Road Haulage Association in Scotland.
"At times of rising fuel prices, it is simply unacceptable that in energy rich Scotland vital sectors of the Scottish economy such as farming, fishing and transport are suffering. Primary industries and those who transport goods are under huge pressure and they are integral to the Scottish economy.
"I welcome the coalition proposals, and the Scottish Government will now present their key demands to the UK Treasury for action - particularly given that official forecasts estimate a 4.9 billion pound tax windfall, which would rise to a 6.2 billion pound windfall at an oil price of 135 dollars a barrel.
Discussing a reply received from the Chancellor of the Exchequer which was referred to at the meeting, on the issue of the Treasurys tax windfall, the FM pledged to continue raising these issues with the Chancellor, given the oil revenue forecasts.
Mr Salmond added:
"The Chancellor of the Exchequer has now at last accepted that there is an offshore tax windfall from Scotlands North Sea Oil, which is a substantial step forward from his previous position.
"He also must accept that there is an onshore windfall from tax on higher road fuel prices - and that key measures such as announcing now the scrapping of the 2p October duty rise and establishing a fuel duty regulator will themselves help to keep the economy moving forward, and strengthen consumer demand throughout the whole economy."