§ Mr. Nicholas Winterton
To ask the Secretary of State for Trade and Industry what recent discussions she has had with representatives of the manufacturing industry on the costs of the climate change levy. 
§ Mr. Wilson
The Government are continuing to keep in touch with business on the climate change levy to monitor experience with its operation. Primary responsibility for the levy lies with my right hon. Friend the Chancellor of the Exchequer.
The Budget proposals for the levy show Her Majesty's Government's readiness to listen to industry views and to amend the levy's design, where justified. My right hon. Friend the Chancellor of the Exchequer announced in the Budget that he proposed to:introduce complete exemption from the levy for electricity from good quality combined heat and power and from coal mine methane, subject to EU state aid approval;1377Wadd new areas of energy saving technology to the list of those benefiting from enhanced capital allowances; andintroduce a new relief for certain recycling processes that compete with processes that benefit from the dual-use or non-fuel use exemptions.
In addition, my right hon. Friend the Chancellor of the Exchequer has also proposed that the levy rates are to be frozen this year.