Downing Street Says

Put that the Prime Minister had mentioned future arrangements for fuel supplies during the Liaison Committee, the PMS said that the Prime Minister had been talking about the wholesale gas market more generally and that it was best to speak to Berr for the details.

Put that the Prime Minister had said that fuel duty would be considered carefully in the next few weeks, the PMS said that it would be considered in the next few weeks, and may also be considered in the few weeks after that, and the few weeks after that. However, the timing of the decision was a matter for the Chancellor.

Put that the Prime Minister and the Chancellor had both said that they would look at the issue of fuel duty again and asked what the Prime Minister saw as the problem, the PMS said that the Prime Minister and the Chancellor had both said that they would consider, at the appropriate time, whether or not to go ahead with the increase in fuel duty, which was due to take place on 1 October. There were quite a few precedents now for the Government not going ahead with pre-announced increases in fuel duties, but there were also precedents for the Government going ahead with pre-announced increases in fuel duty. The PMS said that it was not for him to get into a discussion about the pros and cons at this point, as that was a matter for the Chancellor and the Treasury. However, the Prime Minister had been discussing these and other relevant factors this morning.

Asked if something was going to be announced ahead of the Glasgow East by-election, the PMS repeated that the timing was entirely a matter for the Chancellor. The PMS went on to say that he would have to check the precedents, but his understanding was that there was no particular reason why this would have to happen while Parliament was sitting.

Put that if the Government was to announce that it would not go ahead with the increase due on 1 October it would not have to do so via a Parliamentary statement, the PMS said that, from memory, that was his understanding.

Asked if a Parliamentary instrument was needed to stop it happening, the PMS said that from memory, it was possible to make an announcement of this kind when Parliament was not sitting.

Put that the PMS might be trying to guide journalists, the PMS said he was not guiding journalist towards anything.

Asked about the Prime Minister’s comments about oil prices at the Liaison Committee, the PMS said that the Prime Minister had made his view clear many times that the reason why the oil price had gone up by so much was because of the expectation that oil demand would outstrip oil supply indefinitely. These issues were looked at very comprehensively in the paper that the Treasury published a few weeks ago and that had been the main conclusion that they had reached. If there were other factors that needed to be looked, then the relevant authorities (Treasury, Bank of England and Financial Services Authority) would look at them.

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» Thursday, July 3, 2008

Fuel/Oil

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