§ Caroline FlintTo ask the Chancellor of the Exchequer (1) what conclusion he has reached on the net impact of the climate change levy on the quarrying and aggregates industry; [142056]
(2) what estimate he has made of (a) the tax cost and (b) the value of the concession on national insurance contributions arising from the introduction of the climate change levy for (i) UK manufacturing industry, (ii) UK service industries and (iii) the public sector; [141435]
(3) what estimate he has made of (a) the tax cost and (b) the value of the reduction in national insurance contributions arising from the introduction of the climate change levy for business, broken down by region of the UK; [141439]
(4) what (a) cost in tax and (b) value of the related reduction in national insurance contributions will arise from the introduction of the climate change levy for the UK textile industry; [141437]
(5) what estimate he has made of (a) the tax cost and (b) the value of the reduction of national insurance contributions arising from the introduction of the climate change levy for the UK (i) steel, (ii) chemicals, (iii) paper, (iv) cement, (v) glass, (vi) aluminium, (vii) food and drink, (viii) ceramics, (ix) farming and (x) foundries industries. [141389]
§ Mr. Timms[holding answer 11 December 2000]: The climate change levy will raise an estimated £1 billion in its first year, all of which will be recycled back to business via a 0.3 percentage point cut in employers' National Insurance Contributions and £150 million of spending on energy efficiency. We expect the levy to be broadly neutral between services and manufacturing. The effect on any specific business, sector or region will depend on a number of factors, including their future energy consumption, the level of employment, eligibility for discounts, use of renewable or combined heat and power energy, and take up of enhanced capital allowances.
§ Mr. ClappisonTo ask the Chancellor of the Exchequer what relief from the climate change levy is available for energy intensive businesses subject to international competition but not covered by the integrated pollution prevention and control directive. [141438]
§ Mr. Timms[holding answer 11 December 2000]: The definitions within the Pollution Prevention and Control Regulations as the basis to determine eligibility for a Climate Change Levy Negotiated Agreement allow rebates to be targeted at energy intensive sectors exposed 116W to international competition. Sectors covered by IPPC have to operate in an energy efficient manner, a requirement to which other sites are not subject. IPPC also provides legal certainty and administrative simplicity and is compatible with EU state aids rules.
All businesses, regardless of energy intensity, will benefit from the 0.3 percentage point cut in employers' National Insurance Contributions, the energy efficiency funding and the enhanced capital allowances for energy saving investments. They may also choose to benefit from the exemptions for renewable or combined heat and power energy.
§ Mr. ClappisonTo ask the Chancellor of the Exchequer what progress he has made in obtaining EU state aid clearance for(a) 100 per cent. capital allowances for energy saving investments and (b) his proposals for relief for business in respect of the climate change levy. [141436]
§ Mr. Timms[holding answer 11 December 2000]: Several aspects of the climate change levy package require state aids clearance and the appropriate applications have been made. The most recent draft of the new EU state aid guidelines for environmental measures was published in October. We are continuing to work with the Commission to ensure a timely approval of applications.
§ Mr. ClappisonTo ask the Chancellor of the Exchequer (1) if he will list(a) the agreements granting relief from the climate change levy which he has entered into with energy intensive business sectors subject to international competition and (b) the extent of the discount in each case; [141427]
(2) how many (a) small and medium sized enterprises and (b) enterprises have (i) applied for and (ii) been granted rebates in respect of the climate change levy, broken down by applications per region. [141538]
§ Mr. Timms[holding answer 11 December 2000]: Energy intensive sectors exposed to international competition—as defined by the Pollution Prevention and Control Regulations Part A—will be entitled to an 80 per cent. rebate on the climate change levy in return for entering into climate change agreements which will deliver demanding improvements in their energy efficiency.
These agreements are entered into with the Secretary of State for the Environment, Transport and the Regions. The process of agreement signing is ongoing. To date 1,541 applications for agreements have been received from companies of which around half are estimated to be from small and medium sized enterprises. No analysis by region has been undertaken.