Punitive fuel duty rates – amounting to well over two-thirds of the price of diesel and petrol – plus the lack of broadband access are creating major problems for farmers and other people living in rural Wales, according to the Farmers’ Union of Wales.
As it emerged that a North Wales filling station was this week charging 127.9p per litre for diesel, which included a massive 81.03p fuel duty, FUW president Gareth Vaughan bitterly complained: “Rural dwellers are being ripped off by such huge fuel costs.”
According to the AA, this month’s average prices in Wales are 118.7p for a litre of diesel (75.20p fuel duty) and 115.8p for a litre of unleaded petrol (74.69p duty).
“But because of a lack of public transport in many rural areas of Wales farmers, other business people and individuals have no alternative other than to use their own vehicles,” said Mr Vaughan.
He revealed the views of the union’s 12 county branches were included in its response to the Welsh Office’s “Rural Economy Project” consultation which also listed other problems for Welsh farmers such as proposed increased Meat Hygiene Service inspection charges and the serious impact recent Post Office closures have had for individuals and businesses in rural areas.
In a letter to Parliamentary Under Secretary of State for Wales David Jones MP, the FUW stressed many rural businesses already pay far higher tax levels than their competitors and called for a tax rebate for rural dwellers.
The union pointed out that 4×4 vehicles were a necessity for many individuals and businesses in rural areas due to a range of factors, including the poor standards of access to houses and business premises in rural areas, and the prioritisation of major trunk roads by Local Authorities during adverse weather conditions.
“The current vehicle taxation system means 4×4 owners pay far higher vehicle tax rates than owners of normal vehicles. Yet the system takes no account of the fact that those who own such vehicles do so out of necessity rather than choice.
“Nor does the system take into account the fact that 4×4 owners already pay higher taxes because the level of duty paid on fuel is directly proportionate to the amount of fuel used.”
On meat hygiene inspection charges, the union stressed the introduction of a new time-based charging regime will mean a significant rise in the costs of running slaughterhouses, particularly for small and medium sized slaughterhouses.
“Such slaughterhouses provide important local services for farmers and the public, ensuring that animals and meat are not transported over large distances, and that niche and value added markets can be accessed.”
With an increase in inspection charges, many slaughterhouses are likely to find it economically unviable to continue operating. “Closures would mean the loss of local businesses which rely on selling locally produced and processed food.”
The union pointed out that almost a fifth of houses are further than five kilometres from a BT exchange and broadband cannot be accessed.
“Within rural areas, this figure is much higher and it has been estimated that in areas such as Pembrokeshire, Ceredigion and Flintshire more than 40% of all households are unable to access broadband at speeds greater than 2Mbps.
“While the Welsh Assembly Government’s Broadband Support Scheme is naturally welcome, it is believed that Westminster Government should also take steps to encourage and accelerate the roll-out of broadband in rural areas.
“The Inland Revenue now requires all tax returns to be filed on line, while a number of other government agencies, such as British Cattle Movement Services, are moving towards internet, rather than paper-based services.
“While the reasoning behind such moves is apparent, no account is taken of the lack of access to online services in rural areas where broadband is not available. Paper alternatives to online submissions of information should be available to all those for whom internet access is not an option.”
