HC Deb 19 April 2000 vol 348 c575W
Mr. Gummer

To ask the Chancellor of the Exchequer what discussions he has had with the horticultural industry on substituting a voluntary agreement on emission reduction for the Climate Change Levy. [119293]

Mr. Timms

Budget 2000 announced the Government's intention to offer a special package of support to the horticulture sector under the climate change levy, through setting aside part of the £50 million 'energy efficiency' fund to improve the energy efficiency of the sector and through the additional of thermal screens used in glasshouses to the list of technologies qualifying for the enhanced capital allowances scheme. And to further safeguard the competitiveness of the horticulture sector while these measures take effect, the Government intend to offer a temporary 50 per cent. discount to horticulture firms.

This package of support and the 50 per cent. discount are not conditional on the horticulture sector entering any form of emission reduction agreement with the Government. The Government have been listening carefully to the views of the horticulture industry as the design of the levy has been worked up and the Government intend to continue working with the industry to maximise the environmental benefits of this package of support by improving the energy efficiency of firms in this sector.

Mr. Gummer

To ask the Chancellor of the Exchequer what was the total carbon dioxide saving expected from the Government's original proposals for a climate change levy; and what is the saving expected from the present proposals. [119287]

Mr. Timms

The original estimate of the emission saving from the climate change levy, as set out in table 5.1 of the 1999 Economic and Fiscal Strategy Report, was around 1.5 million tonnes of carbon (MtC) a year by 2010. This estimate related to the pure price effect of the levy, and did not include any savings from the negotiated agreements with the energy intensive sectors.

The most recent estimate of the emission saving from the levy package as a whole, as detailed in table 6.2 of the 2000 Economic and Fiscal Strategy Report, is at least 5 MtC a year by 2010. This estimate now includes the savings from the negotiated agreements with the energy intensive sectors, and the savings from the refinements to the design of the levy that were set out in the 1999 Pre-Budget Report.