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18 March 2010

(S3O-9870) Rural Petrol Stations (Closures)

5. Murdo Fraser (Mid Scotland and Fife) (Con): To ask the Scottish Executive how many petrol stations in rural areas have closed in the past 10 years. (S3O-9870)

The Minister for Transport, Infrastructure and Climate Change (Stewart Stevenson):

I answered a similar question—S3W-27817—on 28 October 2009 with an extract from the interdepartmental business register, which is maintained by the Office for National Statistics. Although the figures do not provide a precise answer to the question asked, the latest statistics suggest that there may have been a reduction in the number of rural petrol stations over a 10-year period of about one third.

Murdo Fraser: The minister may be aware of the serious situation that is faced by filling stations with attached retail premises, some of which have just seen increases of 50 per cent or more in their rateable values that may well threaten their viability. Does the minister agree that we cannot afford more closures of petrol stations in rural areas? If so, can he tell us what action the Scottish Government will take to try to address this serious situation?

Stewart Stevenson: There are two parts to my answer. First, we congratulate many of the rural filling stations as they diversify into other business areas, meeting local needs and, as they broaden their potential income base, giving greater long-term security. Following representations from the industry, the independent Scottish assessors are reviewing the methods used for the valuation of petrol stations.

Jamie Stone (Caithness, Sutherland and Easter Ross) (LD): Prices at many petrol stations in the Highlands are at very high levels right now. Besides hitting customers, those prices may well bring closure nearer to the petrol stations in view of cheaper fuel being available at centrally based supermarkets and areas further south in Scotland. Has the minister had any discussions with HM Treasury with regard to possible changes to the taxation regime that might assist motorists, petrol stations and the local economies of remote and economically fragile areas of Scotland? If he has not had such discussions, will he consider approaching the Treasury as soon as is practically possible?

Stewart Stevenson: I suspect that there are few subjects on which we have had more correspondence with the Treasury. In particular, we have drawn its attention to the experience in Corsica—I think that I am correct in saying this—where the European Union has agreed that prices may be supported in a way that ensures that rural and remote areas such as Corsica can have prices that meet local needs. We absolutely commend that approach as one that is appropriate to Scotland. We need support from the Treasury on it, which we have so far not had.

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