FED Reintroduction Must Be Fair For Industry - MTA
The phased end of the fuel subsidy gives Government and industry time to manage a seamless reintroduction, and ensure no service stations are out of pocket, the Motor Trade Association says.
The Government today announced the fuel excise duty (FED) subsidy will be extended until 28 February, then phased out over the next month.
MTA says the subsidy was welcome support for many households and businesses during the cost of living crisis.
Now, MTA says the last step in the process is ensuring businesses that bore a cost at the start of subsidy aren’t left out of pocket as it comes to an end.
There needs to be a consistent, fair and accurate way of checking that happens. The extension and phased approach will help.
MTA raised this issue with the Ministry of Business, Innovation and Employment (MBIE) immediately after the announcement.
MTA also received an assurance from Energy Minister Megan Woods that it was not intended that any business would be out of pocket.
As around a third of MTA fuel retail members are independent operators, often family businesses, this last point is particularly relevant.
The situation is complex, and MBIE needs to consult with the industry to ensure every business is looked after. There was no consultation or feedback from industry on the unintended consequences of removing the FED. There is an opportunity to learn from this for future programmes.
MTA is happy to facilitate or participate in any conversations between industry and Government to ensure all businesses get a fair go.