HC Deb 10 May 2000 vol 349 cc427-8W
Mr. Welsh

To ask the Minister of Agriculture, Fisheries and Food what compliance costs in relation to the climate change levy face each sector of the agricultural industry; and what assistance is being offered to each sector. [120244]

Ms Quin

Any compliance costs associated with the administration of the climate change levy will fall mainly on the energy suppliers who will have to amend their billing systems in order to accommodate the levy. More information is contained in the Regulatory Impact Assessment of the climate change levy prepared by Customs and Excise and it will be updated as appropriate to reflect any significant changes.

To ensure that the levy will be revenue neutral for the private sector as a whole, revenue collected by the levy will be recycled in full to all sectors of the UK economy through a 0.3 percentage point reduction in employers' NICs and through the provision of an additional £150 million to support energy efficiency measures, including the introduction of 100 per cent. first year capital allowances for energy saving instruments. In addition electricity generated from 'new' forms of renewable energy and in 'good quality' combined heat and power plants will be exempt from the levy. This will be of help to agricultural users of energy produced from these sources.

To assist energy intensive sectors defined as being those sites and installations covered by the EU Integrated Pollution Prevention and Control directive (IPPC), an 80 per cent. discount of the levy rates is being offered to those sectors that can come forward with proposals to make energy savings meeting the Government's criteria. In agriculture these sectors include pigs, poultry and sows.

In addition the Chancellor of the Exchequer announced in Budget 2000 that the Government intend to introduce a package of measures to help improve energy efficiency in the horticultural sector while protecting its competitiveness. Subject to State Aids clearance from the European Commission, this will include: A special package of support for horticulture allocated from the energy efficiency fund. This package will aim to improve energy efficiency across the sector and will include activities such as the provision of site-specific advice for individual businesses. An extension to the list of investments qualifying for enhanced capital allowances to include thermal screens. This will provide a further fiscal incentive for horticultural businesses to invest in energy saving technologies and: A temporary 50 per cent. discount on the levy for a period of up to five years to the horticulture sector while the energy efficiency measures targeted at the sector take effect.