§ Mr. Win GriffithsTo ask the Secretary of State for Environment, Food and Rural Affairs what estimates she has made of the increase in the use of recycled aggregate as a consequence of the introduction of the aggregates levy. [17925]
§ Ms Keeble[holding answer 27 November 2001]: I have been asked to reply.
The increase in the use of recycled aggregates as a consequence of the introduction of the aggregates levy cannot be predicted with certainty. The size of any change will depend on how the producers and consumers of aggregate respond to the levy and to consequent changes in prices, in both the short and longer term. The regulatory impact assessment prepared in 2000 to accompany the proposal for the levy noted that, using the short run elasticities produced by ECOTEC for the Quarry Products Association in 1998, a best estimate of the impact of a £1.60 levy on the demand for primary aggregates would be a reduction of around 10 per cent. of production or, currently, about 24 million tonnes per year. Alternative materials, including recycled aggregate, would replace some of this reduced production, and less aggregate would be required as a result of increased efficiency and a reduction in waste of all aggregates in construction and manufacturing processes. At any level of production, the levy should encourage a shift away from virgin aggregate towards alternative materials such as recycled aggregate.