§ Mr. LidingtonTo ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the impact of the climate change levy upon the(a) profitability and (b) competitiveness of British horticulture. [38579]
§ Mr. Morley[holding answer 4 March 2002]: It is not possible to comment precisely on the effect of the climate change levy on the competitive position of our horticulture industry. This depends, among other things, on the extent to which individual sectors and firms within the industry are exposed to international competition; its future energy use; and the extent to which it takes up the incentives which the Government have introduced to help it improve its environmental performance and to protect its competitiveness. These incentives include:
a special package of support which aims to improve energy efficiency across the sector, including the provision of site-specific advice for individual businesses;exemptions from the levy for most renewable sources of energy and for fuel used by good quality combined heat and power systems;enhanced capital allowances for investments in energy efficiency technologies including thermal screens, boilers, combined heat and power systems and lighting; anda temporary 50 per cent. discount on the levy to the horticulture sector for a period of up to five years while the energy efficiency measures targeted at the sector take effect.