§ 9. Mr. Nigel Evans (Ribble Valley)If he will make a statement on his policy towards energy taxation. [154604]
§ The Financial Secretary to the Treasury (Mr. Stephen Timms)The climate change levy, which comes into effect next week, will help to deliver the reductions in carbon emissions needed for the United Kingdom to meet its Kyoto and domestic targets. I am delighted to inform the House that European state aid clearance was given yesterday for the package of negotiated agreements for energy-intensive users, including the full 10-year duration that we sought, and for exemptions for renewable energy and combined heat and power.
§ Mr. EvansFollowing the announcement yesterday by the President of the United States that he will not proceed to ratify the Kyoto protocol because it is not in the best interests of American industry, will the Financial Secretary put British industry first? Will he look again at the enormous cost of the climate change levy, regardless of the package that he has just announced? Throughout the country, including the north-west, the levy will do enormous damage to manufacturing industry which, in any event, is in general decline. The President of the United States is putting American industry first; is not it about time that the Chancellor started to put British industry first and scrapped the levy?
§ Mr. TimmsIt is the interests of every inhabitant of the globe that the Kyoto process proceeds and that the problem of climate change is addressed. It was disappointing that The Hague conference failed to reach agreement, but our aim is to work with the US Administration to advance the process. The climate change levy is a key element in meeting our Kyoto obligations and is revenue-neutral. All the proceeds will be recycled back to business, and the whole levy has been designed to protect the competitiveness of UK firms.
§ Mr. Tom Clarke (Coatbridge and Chryston)Does my hon. Friend agree that the message of President Bush's deplorable decision to turn the Kyoto agreement on its head is that no Government anywhere should ever let themselves be compelled by vested interests and that our Government are right to put the environment first?
§ Mr. TimmsI have certainly seen the press reports this morning. Our aim is to work with the United States Administration to take this very important process forward. It is in the interests of every citizen of the globe that we do so.