HC Deb 26 July 2000 vol 354 c694W
Mr. Fearn

To ask the Chancellor of the Exchequer what assessment he has made of the effect on employment in coastal areas of the introduction of the proposed aggregates tax. [132493]

Mr. Timms

All of the revenues raised from the levy will be recycled back to business through a cut in employer National Insurance contributions (NICs) and a new `Sustainability Fund' aimed at delivering local environmental benefits. It is not possible to say precisely what the effect of the levy, the cut in employer NICs and the Sustainability Fund will be on the aggregates and construction industries, since this will depend, among other things, on future employment trends and the degree to which firms switch to recycled materials.

Mr. Rogers

To ask the Chancellor of the Exchequer what the principal objectives are of the proposed aggregates tax. [132431]

Mr. Timms

The main objective of the aggregates levy is to bring about environmental benefits by making the price of aggregates better reflect their true environmental costs, and encouraging the use of recycled aggregates.

In addition, some of the revenues from the levy will be used for the new `Sustainability Fund' aimed at delivering local environmental benefits to areas subject to the environmental costs of aggregates extraction. The Government will be consulting shortly on how this fund can best be used.