§ Mr. David HeathTo ask the Chancellor of the Exchequer for what reason he is not proposing to introduce a tax on the extraction of non-aggregate minerals. [131917]
§ Mr. TimmsAs aggregates are the largest tonnage of onshore minerals extracted, they generate the largest environmental impact, costed at around £380 million per annum in research conducted for DETR in 1997–99. The aggregates levy will send a permanent price signal about this damage, and provide an incentive for the construction industry to reduce waste and make more use of recycled material as substitutes. The scope of the levy was determined following extensive consultation with interested paries, which suggested that certain non-aggregate minerals should not be taxed. These minerals are not open to the same degree of substitution as aggregates. In some cases they are constituents of products subject to significant international competition, so the application of the levy to these materials would raise difficulties over the international competiveness of UK producers.