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25 August 2000
LOCAL COMMUNITIES AFFECTED BY QUARRYING SET TO BENEFIT FROM ENVIRONMENTAL IMPROVEMENTS
Promoting conservation and funding research into more sustainable construction practices are amongst the wide-ranging proposals announced today by Treasury Minister Stephen Timms to help reduce the environmental impacts of quarrying.
A consultation into proposals for the 'Sustainability Fund' launched today sets out possible approaches to delivering environmental benefits to local communities affected by sand, gravel and crushed rock quarrying.
Announcing the consultation, Stephen Timms, Financial Secretary to the Treasury said:
"This new Fund provides an excellent opportunity to deliver real environmental benefits - not only to local communities affected by the impact of quarrying - but also for the future of construction design and aggregates recycling."
Revenue for the Fund will be recycled from the aggregates levy due to be introduced from April 2002.
The consultation document invites views from all interested parties on how the objective of the Fund - to deliver environmental benefits to areas subject to the environmental costs of quarrying - can best be achieved, and suggests a number of options for discussion. They include:
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overcoming market barriers and promoting increased use of alternative materials as aggregates;
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funding research into more sustainable construction and demolition practices;
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promoting conservation and increased biodiversity;
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restoring the natural landscape;
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promoting environmentally friendly quarrying practices; and
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local community projects.
Responses to the consultation document are requested by 6 October 2000.
NOTES FOR EDITORS
1. In the March 2000 Budget, the Chancellor announced that an aggregates levy would be introduced from April 2002. The aggregates levy will ensure that the environmental impacts of aggregates production not already addressed by regulation are more fully reflected in prices, encouraging a shift in demand away from virgin aggregate towards alternative materials such as recycled materials.
2. Revenue from this levy will be fully recycled to business through a 0.1 per cent cut in employers' National Insurance contributions and the new Sustainability Fund. The levy will be applied across the UK, any public spending decisions on devolved issues will be a matter for the devolved administrations.
3. The aggregates levy will apply to virgin sand, gravel and crushed rock which is subject to commercial exploitation in the UK - including that dredged from the seabed within UK territorial waters. It will be charged at £1.60 per tonne and is expected to raise £385 million in its first full year (2002-03). The levy will not apply to recycled aggregates, or to certain waste aggregates such as those derived from reworking old spoil heaps. To protect competitiveness, exports will be relieved and imported aggregates will be subject to the levy when they are first sold or used in the UK.
4. Hard copies of the consultation document are available from:
Sustainability Fund Consultation
Environmental Tax Team
Room 23/G
HM Treasury
Parliament Street
London SW1P 3AG
Or click on the link below for the consultation document.
5. General enquiries should be addressed to the Treasury Public Enquiry Unit on 020 7270 4558. Media enquiries should be directed to the press office on 020 7270 4420.