§ Mr. PollardTo ask the Secretary of State for Trade and Industry what assessment he has made of the impact of the climate change levy on the competitive position of the United Kingdom's horticultural industry. [120805]
§ Ms QuinI have been asked to reply.
It is not possible to say with precision what the effect of the climate change levy will be on the competitive position of the United Kingdom's horticultural industry. This will depend, among other things, on the extent to which individual sectors and firms within the industry are exposed to international competition, the future energy 201W use of the industry and the extent to which the industry takes up the various incentives offered under the levy to improve energy efficiency.
The Government have sought to design the climate change levy in a way that maximises its environmental effectiveness while protecting the competitiveness of UK firms. With respect to the horticultural industry the Chancellor of the Exchequer announced in Budget 2000 that the Government intend to introduce a package of measures to help protect 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.