HC Deb 02 May 2000 vol 349 cc33-4W
Dr. Starkey

To ask the Chancellor of the Exchequer what is the estimated cost of extending the 80 per cent. discount on the climate change levy to horticulture for the financial year 2001–02. [119916]

Mr. Timms

The 80 per cent. discount on the climate change levy is available only to sectors covered by the Integrated Pollution Prevention and Control Directive (IPPC) who enter into negotiated agreements to deliver additional improvements in energy efficiency. This reflects the additional regulatory burden on such firms, who must implement all cost-effective energy saving measures in order to qualify for a discount.

The horticulture industry is not covered by IPPC and is therefore not eligible for the 80 per cent. discount. Nevertheless, the Government recognise the unique position of horticulture as an energy intensive sector exposed to international competition, and where there is scope for energy savings to be made.

The Government therefore intend to give a package of support from the £50 million 'energy efficiency' fund to improve the sector's energy efficiency, and have included thermal screens, which are used in glasshouses, in the list of technologies eligible for the enhanced capital allowance. And the Government intend to offer a temporary 50 per cent. discount to protect the competitiveness or horticulture firms while these energy efficiency measures take effect.

Initiatives started on or after May 1997—Benefits Agency (BA)
Initiative/project Cost (£ million) Start date End date
AQLAD (ABR/QST) 0.2 April 1999 Continuing
ABR 16.24 September 1997 Continuing
BA/CSA 1.6 1997 Continuing
BA/LA Liaison 1.0 1997 Continuing
Card Fraud Investigation 0.04 1997 February 1999—Cancellation of the payment by card process
Child Benefit Initiatives 2.4 1997 Continuing

Final decisions on the exact design of the package of support to horticulture have yet to be taken. It is therefore not possible to quantify exactly the cost of the package.

Mr. Jack

To ask the Chancellor of the Exchequer if he will place in the Library the economic impact studies which he has conducted on the climate change levy. [120287]

Mr. Timms

Copies of the Regulatory Impact Assessment of the climate change levy are available in the Library.

Mr. Welsh

To ask the Chancellor of the Exchequer what estimate he has made of the cost to local authorities of the climate change levy with particular reference to(a) street lighting, (b) leisure services and (c) housing; and what support he plans to make available to local authorities to meet such costs. [120630]

Mr. Timms

The Government believe that all sectors of the economy must play their part in helping meet the UK's targets for reducing greenhouse gas emissions.

It is not possible to say with precision what the effects of the climate change levy on local authority services will be since that will depend on, among other things, future energy use in this sector. However, local authorities will be overall net gainers from the climate change levy package, since they will gain more from the associated cut in employer NICs than they will pay in climate change levy.