HC Deb 27 July 1999 vol 336 c390W
Mr. Caplin

To ask the Chancellor of the Exchequer how fuel used in chemical reactions will be treated under the climate change levy. [93817]

Ms Hewitt

As indicated in the consultation document published by Customs and Excise on Budget day, coal and gas used in chemical reactions will not be subject to the levy. Officials at Customs are having useful discussions with industry about how to apply the exemption to fuels used both for chemical reaction and for heating, such as in the steel industry. In the light of the representations received on the treatment of electrolysis, we propose to extend this to electricity. We propose that electricity used for electrolysis, either for the production of chloralkalis or the primary smelting of aluminium, will be exempt from the levy to the extent that it is used in chemical reactions. Again, Customs will discuss precisely how this will work with the industries involved with a view to the revised treatment being included in the draft clauses to be published in the autumn.

Mr. Baldry

To ask the Chancellor of the Exchequer what representations he has received in relation to the potential of the proposed climate change levy on certain fuels to increase carbon dioxide emissions. [92152]

Ms Hewitt

[holding answer 20 July 1999]: The Chancellor of the Exchequer has received a number of representations in the course of the consultation on the climate change levy. These will be considered very carefully in determining the final design of the levy.