§ Mr. HammondTo ask the Secretary of State for Trade and Industry if she will make a statement on the impact of the climate change levy upon the manufacturing sector. [104145]
§ Alan JohnsonThe climate change levy is an environmental protection measure and is designed to avoid damaging the competitiveness of UK manufacturing. The levy's impact on individual manufacturing businesses will depend on the extent to which they take advantage of the various levy exemptions, the scheme of enhanced capital allowances for energy efficiency, and energy support from the Carbon Trust; and whether their sites qualify for a discount from the levy. Eligible sites in energy intensive industries are receiving an 80 per cent. levy discount where they have committed to challenging energy saving targets in negotiated agreements with the Government.
The Government continue to keep in touch with business on the levy's operation to see how it is changing the way they manage their energy use.