§ Mr. Alasdair MorganTo ask the Chancellor of the Exchequer what estimate he has made of the net yearly costs in the first year of implementation of the climate change levy to(a) the dairy industry and (b) the agriculture industry in Scotland. [127697]
§ Mr. TimmsIt is not possible to say what the precise effect of the levy will be on any one particular industry. The impact of the levy package will depend on a number of factors, including: the future energy consumption by firms; the level of employment in those firms; the number of firms that are eligible to receive a discount on the main rates of the levy by signing up to an energy efficiency agreement; what use they make of electricity generated from 'new' renewable sources of energy and in 'good quality' combined head and power plants; and the extent to which they take advantage of the proposed introduction of a system of enhanced capital allowances for energy saving investments. However, the agriculture sector stands to benefit from a number of features of the levy package including the proposed special package of support for the horticulture subsector announced in the March 2000 Budget.