Nevertheless we have agreed to continue the discussions on these issues. I believe the Scottish Executive can also play a role in helping to make the case and we are keen to enlist their help. Transport costs in the area are cripplingly high and both Calum and myself are determined to bring about changes that will improve the situation. Nowhere is that more needed than in the island areas and we will now double our efforts to bring about real change for the benefit of the communities that we serve. Spending a far greater proportion of its GDP on motoring costs than the central belt, the region is severely disadvantaged in attracting jobs and investment.
Similar measures are in place in some European countries such as Finland.
The current duty on 'red' agricultural diesel is a fraction of this, at 3 pence a litre. This week, Scotland Office Minister Brian Wilson urged the oil companies to cut supply prices to remote petrol stations. However, critics were quick to respond by reminding the Minister that the Treasury claims up to 85 pence out of every 1 taken at the pumps, depending on the location. Consequently, some would argue that it is the Government that is best placed to offer relief to the hard-pressed Highlands and Islands economy. The oil companies and distributors currently take 28 pence in the pound from Island pumps compared to 15 pence in the central belt.