11 March 2005

Government Acknowledges Aggregates Levy Has No Direct Environmental Impact

Following the Quarry Product Association's representations and evidence to the Government highlighting the lack of evidence that the aggregates levy has generated overall environmental benefits, a Government document has now publicly acknowledged that the levy has no direct environmental benefit.

In the Department for Transport's recent statement announcing a revised system of transport grants, including the use of the aggregates levy sustainability fund (ALSF), the document states:

"The aggregates levy reduces demand for primary aggregates by increasing their cost and makes the use of recycled and secondary materials more viable: but it does not tackle the environmental impacts directly." [See notes for web link].

This statement directly contradicts the assertion made in the Chancellors Pre Budget Report, which claims that the levy brings about "reductions in noise and vibration, dust and other emissions to air, visual intrusion, loss of amenity and damage to wildlife habitats". [See notes for web link].

The QPA's Director General, Simon van der Byl said; "the aggregates levy is supposed to be an environmental tax, but even government now admits that the levy is having no direct environmental benefit. In practice, it has had little impact on mineral extraction or recycling in the sector, therefore no justification for the levy remains. It is now clear to everyone that this emperor has no clothes. As a matter of urgency Government should now set out a timetable for withdrawing the levy, and focus instead on policies which make a real contribution to the sustainability of the sector."

ENDS

If you need any more information, please contact our Press office or return to the News homepage