HC Deb 24 July 2000 vol 354 cc484-5W
Mr. Blizzard

To ask the Chancellor of the Exchequer (1) what assessment he has made of the effect on employment in rural areas of the introduction of the proposed aggregates tax; [131609]

(2) what assessment he has made of the effect on employment in the aggregates and construction industry of the proposed aggregates tax; [131610]

(3) how the proposed aggregates tax will differentiate between quarrying operations with good and bad environmental performance; [131613]

(4) what assessment he has made of the benefits of linking the taxation of aggregates to environmental performance of quarrying operators; [131611]

(5) if he will exempt some quarrying operations from the proposed aggregates tax on the basis of defined environmental targets. [131612]

Mr. Timms

The aggregates levy is based on independent research which verified that there are significant environmental costs associated with quarrying, including noise, dust, visual intrusion, loss of amenity and damage to biodiversity. The Government decided to address these costs through the introduction of the aggregates levy. It will be introduced at a uniform rate in order to keep it simple and to give a clear signal to purchasers of primary aggregates to use more sustainable materials. It will reward quarry operators who invest in equipment for recycling, and ensure that all users of aggregates are taking responsibility for the costs that the production of their inputs imposes on the rest of society. This is consistent with the polluter pays principle.

There would be a number of practical difficulties with a levy which attempted to differentiate between quarries with different environmental performance. These relate to assessing compliance, defining environmental performance, the treatment of imports, EU state aids rules and UK competition policy. A uniform levy was therefore considered to be the most viable option.

All the revenues raised from the levy will be recycled back to business through a cut in employer National Insurance Contributions (NICs) and a new `Sustainability Fund' aimed at delivering local environmental benefits. It is not possible to say precisely what the effect of the levy, the cut in employer NICs and the Sustainability Fund will be on the aggregates and construction industries, since this will depend, among other things, on future employment trends and the degree to which firms switch to recycled materials.

Back to