§ Mrs. Ray MichieTo ask the Chancellor of the Exchequer what consultations he has had with Scottish industry concerning the implementation of the aggregates tax in 2002; and if he will make a statement. [129042]
§ Mr. TimmsThe Government have developed the aggregates levy in an open and consultative way. HM Customs and Excise issued a consultation document in June 1998, which invited views from industry and other parties with a potential interest on the practical issues that would arise from a levy on aggregates. Draft legislation for the levy was then published for consultation on 30 April 1999.
During this process, the Government have received a number of representations from Scottish business, and these have been taken account of in the design of the levy.
§ Mrs. Ray MichieTo ask the Chancellor of the Exchequer what assessment he has made of the impact of the proposed aggregates tax on Scottish industry; and if he will make statement. [129040]
§ Mr. TimmsThe aggregates levy will bring about environmental benefits by making the price of aggregates better reflect their true environmental costs. This will provide an incentive for all business to use more recycled aggregates and to use all aggregates more efficiently.
All of the revenues raised will be recycled back through a cut in employer NICs and a new "Sustainability Fund" aimed at delivering local environmental benefits. It is not possible to say precisely what the effect will be on Scottish industry, since this will depend, among other things, on the degree to which firms switch to recycled materials.