§ 1. Mr. MacShaneTo ask the Secretary of State for the Environment what assessment he has made of the environmental impact of the proposed landfill tax; and if he will make a statement. [15487]
§ The Secretary of State for the Environment (Mr. John Gummer)The landfill tax is another step towards green taxation. It shifts tax from jobs and resources and has been widely welcomed.
§ Mr. MacShaneDoes the Secretary of State appreciate that the landfill tax at present constituted will penalise the very bodies and companies that are seeking to clear up contaminated land? In my constituency, it will add £20 million to the cost of any efforts made by the local authority to clean contaminated land, and cost hundreds of millions of pounds in the rest of Yorkshire. Does the right hon. Gentleman realise that the tax will do great damage to British Steel, for example, and other companies that want to clear up contaminated land? It is a tax designed to put money into the Treasury. Will the right hon. Gentleman join me and local authorities, as well as responsible companies, in opposition to the bean-counting twerps at the Treasury and devise a real tax that will stop pollution where it begins rather than where it ends?
§ Mr. GummerAs the hon. Gentleman knows, the tax does not put money into the Treasury. It is a tax on landfill that will be recycled. The moneys will be paid out to reduce tax on jobs. The hon. Gentleman knows that to be true. He shows by shaking his head that he does not understand the tax. I am surprised, because there is a landfill tax in Switzerland that works extremely well.
§ Mr. AtkinsDoes my right hon. Friend agree that the tax, an environmental initiative for which he and I both worked, is yet a further sign of the Government's commitment to environmental matters? Does he agree also that no excuses can or should be accepted from local authorities for not implementing the landfill tax as it is clear that they have the moneys to do so?
§ Mr. GummerMy right hon. Friend will be as sorry as I am that the Labour party has shown once again that, although it talks generally about the environment 704 sometimes—not very often—it is not prepared to make the major changes that are necessary when it comes to precise and practical details. As the hon. Member for Rotherham (Mr. MacShane) knows, the concerns about how we should deal with landfill, which is the removal of contamination, are the subject of active discussion. Local authorities have already been able to retain in their baselines the moneys that they used to use for waste responsibilities. Those moneys have been transferred to the Environment Agency.
§ Mr. Eric ClarkeIs the Secretary of State aware that the tax, especially in the form of the £7 levy, will have a detrimental effect on the coal industry, and particularly on coal-fired stations where fly ash is produced by the burning of coal? At present 50 per cent. of fly ash is recycled. The other 50 per cent., especially in Scotland, is put into lagoons and reclaimed lands in the Forth estuary. It is an asset for the community and not detrimental to it. Is the right hon. Gentleman considering imposing the £2 levy rather than the levy of £7?
§ Mr. GummerIt is a useful material and we are trying to promote recycling. That is important. If we are to have green taxes, they should be designed to ensure that we recycle rather than continue with landfill, which is one of the least satisfactory uses of the material to which the hon. Gentleman has referred. That is why environmental groups throughout the country have welcomed the tax change. I am sorry that the Labour party does not support it.
§ Mr. DevlinIs it not the case that an amendment that links the concerns of the hon. Members for Rotherham (Mr. MacShane) and for Midlothian (Mr. Clarke) has been accepted by the Committee that is considering the Finance Bill? Is not the real concern about landfill tax the fly tipping that is engaged in by those who are not prepared to pay for rubbish to be taken to an incinerator or a waste exchange area, which means that material is left on roadsides? Should not we be considering an arrangement for the general public to rid themselves of their rubbish without littering our countryside?
§ Mr. GummerAs my hon. Friend says, it is certainly necessary to give the general public more opportunities to be able to get rid of their rubbish. Many local authorities are already doing that. I hope considerably to encourage that approach. Amendments have been accepted by the Committee that is considering the Finance Bill, and they will go some way to meet some of the concerns. As the hon. Member for Rotherham clearly does not understand the way in which the tax will work and fails to appreciate that the Treasury does not gain from it—moneys raised by the tax will be recycled to reduce pressures on jobs—there was no point in supplying him with such details. He has not got that far.