HC Deb 10 January 2002 vol 377 cc991-2W
Mrs. Ann Winterton

To ask the Secretary of State for Environment, Food and Rural Affairs what recent discussions she has had with the Chancellor of the Exchequer about the impact of a pesticides tax on the profitability of UK agriculture. [23065]

Mr. Morley

Proposals for a pesticides tax are not currently under discussion, pending evaluation of the success of a voluntary initiative by industry. In the 2001 budget, my right hon. Friend the Chancellor of the Exchequer welcomed the package of voluntary measures for minimising the adverse environmental impacts of pesticides submitted by the Crop Protection Association, farming unions and other stakeholders and said that the Government wished to see it implemented nationwide as soon as possible. The 2001 pre-Budget report published on 27 November sets out the Government's latest position and the relevant paragraphs are as followsExtract from 27 November 2001 pre-Budget report Pesticides 7.86 Pesticide use is associated with damage to biodiversity and water contamination. The Government is committed to minimising these impacts, consistent with adequate crop protection. The statutory product approval system and the Pesticides Forum make important contributions to achieving this objective. The Government also believes that a tax on pesticides could, in conjunction with other measures, be a useful tool in addressing the environmental impact of pesticides. 7.87 In Budget 2001 the Government welcomed the voluntary proposals from the agrochemical industry and the commitments made by various stakeholders to address these issues, and encouraged their early implementation. The voluntary package was implemented from 1 April 2001 and will run initially for five years, nationwide. It is overseen by a steering group comprising the signatories to the package and representatives of an equivalent number of environmental organisations, under an independent chairman. The Government will review progress on the package in the run up to Budget 2002, to assess whether it is delivering significant environmental benefits over and above those that would result from introducing a pesticides tax.