Climate Change Levy (Hansard, 11 November 1999)

§ 26. Mr. Pike
To ask the Chancellor of the Exchequer what recent representations he has received on the proposed climate change levy. [97015]

§ Mr. Timms
My right hon. Friend the Chancellor of the Exchequer has received a number of representations on the climate change levy. The views expressed fed in to the further details on the design of the levy announced by the Chancellor in his Pre-Budget Report statement.

§ 37. Mr. Illsley
To ask the Chancellor of the exchequer if he will make a statement on exemption from his proposed climate change levy. [97026]

§ Mr. Timms
The Government believe that all sectors of the economy must play their part in helping tackle the problem of climate change. So there will not be complete exemptions from the climate change levy for particular firms or sectors. In line with Lord Marshall's recommendation, the Government propose to retain an incentive for all firms to save energy at the margin. But the Government do recognise the special position of energy intensive industries and intends to offer an 80 per cent. discount to those energy intensive sectors that sign energy efficiency agreements which meet the Government's criteria.

§ Dr. Kumar
To ask the Chancellor of the Exchequer (1) what calculation he has made of the effects of different levels of climate change levy on enabling the UK to meet the targets for reduction in greenhouse gas emissions under the Kyoto protocol and the Government's domestic goal for reducing carbon dioxide emissions; [97722]
(2) what assessment he has made of the impact of the climate change levy assuming that all its costs are passed on to consumers; and if he will make a statement; [97623]
(3) what assessment he has made of the report by Business Strategies entitled "The Climate Change Levy—Impact on the UK Economy"; and if he will make a statement; [97625]
(4) what calculation he has made of the cost of collection and administration of the climate change levy for (a) the Government, (b) large companies and (c) small and medium sized enterprises; and if he will make a statement; [97855]
(5) what representations he has received from scientists and engineers about the effect of the climate change levy on (a) large companies and (b) small and medium sized enterprises; and if he will make a statement; [97840]
(6) if he will assess the effect the climate change levy will have on GDP, based on the assumption that industry will not be able to pass on the climate change levy to customers; and if he will make a statement; [97858]
(7) what assessment he has made of the effect the climate change levy will have on the balance of payments between the UK and the Republic of Ireland; and if he will make a statement; [97859]
769W
(8) if he will exempt companies which make reductions in their carbon dioxide emissions commensurate with the UK's national reduction targets agreed at Kyoto from the climate change levy; and if he will make a statement; [97861]
(9) what assessment he has made of the impact the climate change levy would have on future investment in the UK; and if he will make a statement. [97854]

§ Mr. Timms
My hon. Friend's questions touch upon a number of issues surrounding the introduction of the climate change levy and I will write to him shortly to respond in full to the points raised. I will arrange for a copy of that letter to be placed in the Library of the House.

§ Mr. Luff
To ask the Chancellor of the Exchequer if he will make a statement on the application of the Climate Change Levy to the horticultural industry. [98406]

§ Mr. Timms
The Government believe that all sectors of the economy must play their part in tackling climate change. The climate change levy is designed to be revenue neutral for the private sector as a whole, with all the revenues raised being fully recycled back to business through a cut in employers' National Insurance Contributions (NICs) and additional support for energy efficiency measures.
It is not possible to say what the exact impact of the levy on the horticultural sector will be. That will depend on a number of factors including, for example, their future energy consumption, what use they make of electricity generated from "new" renewable sources of energy and in "good quality" combined heat and power plants, and whether they take advantage of the proposed introduction of a system of enhanced capital allowances for energy saving investments. The horticulture sector will also benefit from the lower overall rates of the climate change levy announced by the Chancellor in his Pre-Budget Report statement.