Climate Change Levy (Hansard, 28 March 2000)

§ Mrs. Ewing
To ask the Chancellor of the Exchequer what assessment he has made of the impact of Article 52 of the EC Treaty on the provisions for persons to notify the Commissioners when they are liable to be registered for the climate change levy. [116581]

§ Mr. Timms
I am satisfied that the provisions for climate change levy which will appear in the Finance Bill will be compatible with all our obligations under the EC Treaty.

§ Mrs. Ewing
To ask the Chancellor of the Exchequer (1) if the climate change levy will be levied upon(a) actual and (b) estimated energy supply in a period; and what provisions are to be made for overpayment on the basis of estimated bills; [l16586]
(2) what factors may be taken into account in determining culpability for the late submission of climate change levy returns; and if he will introduce an element of culpability to the penalty regime; [116587]
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(3) if he will make a statement on the definition of (a) taxable commodity under schedule 1 paragraph A3(1)(b) of the climate change levy legislation and (b) utility, contained in the legislation to ensure that suppliers liable to climate change levy are easily identifiable. [116591]

§ Mr. Timms
HM Customs and Excise have undertaken an extensive consultation exercise on the draft climate change levy legislation published on 26 November 1999. The results of this consultation are being taken into account in the proposed legislation. This will be contained in the Finance Bill to be published shortly.

§ Mrs. Ewing
To ask the Chancellor of the Exchequer if he will confer on Her Majesty's Customs and Excise discretion to reduce penalties for late submission of climate change levy returns; and if he will review the interest rate on the penalty for small businesses. [116588]

Timms
As a result of the consultation exercise undertaken on the draft climate change levy legislation by HM Customs and Excise, I will be proposing changes to the penalty system for late submission of climate change levy returns. I have no plans to review the interest rate on the penalty for small businesses.

§ Mr. Swinney
To ask the Chancellor of the Exchequer if he will make a statement on his reasons for exempting Northern Ireland from the climate change levy. [116578]

§ Mr. Timms
I have announced that we shall be exploring with the European Commission the scope for allowing a temporary exemption from climate change levy for natural gas in Northern Ireland for a period of up to five years. This reflects the very different nature of the energy market in Northern Ireland and the fact that gas is only as yet available in a limited area. A temporary exemption will facilitate the development of the infrastructure and make gas available to a greater number of potential customers.

§ Mr. Swinney
To ask the Chancellor of the Exchequer to what extent the climate change levy will be charged on supplies of energy(a) from Northern Ireland to other parts of the United Kingdom and (b) from other parts of the United Kingdom to Northern Ireland. [116579]

§ Mr. Timms
Climate change levy is only charged on supplies to final consumers. If the proposed exemption from climate change levy for natural gas in Northern Ireland is approved by the European Commission, climate change levy will be charged on all sales of products within the scope of the levy where the customer is located in the United Kingdom, except for sales of natural gas where the customer is located in Northern Ireland. The location of the supplier is not relevant.