§ Mr. LidingtonTo ask the Chancellor of the Exchequer (1) what assessment he has made of the compliance of the aggregates levy with article 1 of the first protocol to the European Convention on Human Rights; [20200]
(2) what assessment he has made of the compliance of the aggregates levy with the (a) World Trade Organisation agreement on subsidiaries, (b) articles 87 and 88 of the EC Treaty and (c) article 14 of the European Convention on Human Rights. [20189]
§ Mr. Boateng[holding answer 3 December 2001]: The UK Government are currently pursuing with the European Commission the state aid case for phasing in of the levy in Northern Ireland; the aggregates levy otherwise complies with the provisions of articles 87 and 88 of the EC Treaty.
The aggregates levy is compatible with the European Convention on Human Rights and all relevant international agreements and treaties.
§ Mr. DrewTo ask the Chancellor of the Exchequer what recent discussions has he had with(a) the Quarry Products Association, (b) the British Aggregates Association and (c) other representative bodies on the subject of the proposed aggregates tax. [20705]
§ Mr. Boateng[holding answer 5 December 2001]: The Quarry Products Association and British Aggregates Association are among the industry representatives who form part of the aggregates levy consultation group established by HM Customs and Excise. This group has met regularly since the introduction of the aggregates levy was announced.
§ Mr. DrewTo ask the Chancellor of the Exchequer what studies he has undertaken of the impact of the aggregates tax upon the international competitiveness of the United Kingdom. [20708]
§ Mr. Boateng[holding answer 5 December 2001]: All imports will be subject to the aggregates levy. Exports of aggregate from the UK will not be subject to the levy. This will protect the international competitiveness of the UK's quarrying industry.
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§ Mr. DrewTo ask the Chancellor of the Exchequer what plans he has to simplify the regulations for the new aggregates tax. [20707]
§ Mr. Boateng[holding answer 5 December 2001]: The Government will ensure that the aggregates levy regulations are as straightforward as possible.
§ Mr. DrewTo ask the Chancellor of the Exchequer if he will publish studies he has undertaken of the impact the new aggregates tax will have on public sector infrastructure projects. [20709]
§ Mr. Boateng[holding answer 5 December 2001]: An increase in the price of aggregates will provide an incentive to use aggregates efficiently and encourage wider use of recycled aggregates, regardless of whether they are being used in public or private sector projects.
§ Mr. DrewTo ask the Chancellor of the Exchequer what evaluation he has made of the impact of the proposed aggregates tax on(a) the rural economy and (b) rural employment. [20710]
§ Mr. Boateng[holding answer 5 December 2001]: The rural economy will benefit from the levy funded 0.1 percentage point reduction in employers' national insurance contributions and the new £35 million Sustainability Fund which will deliver local environmental benefits to areas subject to the environmental costs of aggregates extraction.
§ Mr. DrewTo ask the Chancellor of the Exchequer what research the Treasury has undertaken into the impact upon Northern Ireland of the introduction of the aggregates tax. [20717]
§ Mr. Boateng[holding answer 5 December 200I]: The Government have looked closely at the impact of the levy on the producers of processed aggregate products (such as precast concrete) in Northern Ireland and recognise that they are at greater risk of increased international competition than their mainland counterparts, because of the land boundary with the Republic of Ireland.
As announced in the pre-Budget report, the Government are proposing to address this by phasing the levy in over five years in Northern Ireland, beginning with a complete exemption in 2002–03. This will provide further time for affected businesses to adapt. This is subject to EU state aid approval.
§ Mr. DrewTo ask the Chancellor of the Exchequer when the full list of exemptions from the aggregates list will be published. [20716]
§ Mr. Boateng[holding answer 5 December 2001]: Details of all the exemptions from the aggregates levy are contained within the Finance Act 2001. A list of prescribed industrial and agricultural processes which will be relieved under section 30 will be published shortly as part of the aggregates levy general regulations.
§ Mr. DrewTo ask the Chancellor of the Exchequer what the reasons are for the levy of £1.60 per tonne on the extraction of(a) sand, (b) gravel and (c) rock. [20706]
§ Mr. Boateng[holding answer 5 December 2001]: Independent research has verified that there are significant environmental costs associated with quarrying that are not already covered by regulation, including noise, dust, visual intrusion, loss of amenity and damage to 688W biodiversity. The levy will bring about environmental benefits by making the price of aggregates better reflect their true social and environmental costs, and encouraging the use of alternative materials which would otherwise have to be landfilled, thus reducing the amount of extraction.
§ Mr. DrewTo ask the Chancellor of the Exchequer what environmental impact assessment he has undertaken of the effects of the introduction of the new aggregates tax; and if this includes the cost of the disposal of unsaleable secondary aggregates. [20711]
§ Mr. Boateng[holding answer 5 December 2001]: Independent research has shown that there are significant environmental costs associated with quarrying which are not already covered by regulation, including noise, dust, visual intrusion, loss of amenity and damage to biodiversity. The levy will make the price of aggregates better reflect these social and environmental costs and encourage efficient use of aggregates, as well as the increased use of recycled aggregates and other alternatives to virgin aggregate, thus reducing the amount of extraction.
In the pre-Budget report the Government announced that in consultation with the aggregates industry, they are examining proposals to deliver additional environmental benefits through the aggregates levy by encouraging the use of aggregates waste.