HC Deb 16 February 1981 vol 999 c25W
Mr. Skeet

asked the Secretary of State for Energy what assumptions he has made in arriving at the estimated tax yields for the proposed new gas levy of £130 million in 1980–81, £420 million in 1981–82 and £750 million in 1982–83.

Mr. Norman Lamont

The estimated yield of the proposed gas levy takes into account the British Gas Corporation's forecasts of purchases of gas liable to the levy and the rates of the levy proposed in the Gas Levy Bill.

Mr. Skeet

asked the Secretary of State for Energy whether it is his intention that the levy proposed under the Gas Levy Bill will be imposed on gas ultimately used as a petrochemical feedstock.

Mr. Norman Lamont

It is proposed that the levy will be imposed on gas purchased under particular contracts as defined in the Gas Levy Bill, irrespective of the end use of the gas.

Mr. Skeet

asked the Secretary of State for Energy whether he will consider using the proceeds of the levy proposed under the Gas Levy Bill for (a) research and development of alternative fuels or (b) to diminish the high rates imposed on industries where the cost of gas is a high percentage of total costs, to permit them to compete more effectively with Continental manufacturers.

Mr. Norman Lamont

No. Public revenues are not hypothecated to particular purposes.

Mr. Skeet

asked the Secretary of State for Energy why the levy proposed to be imposed under the Gas Levy Bill is to be paid to the Secretary of State under clause 3, and not direct to the Treasury, which is the ultimate recipient under clause 6.

Mr. Norman Lamont

It is normal for public revenues to be collected by the appropriate Government Department.

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