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16 July 2007

Planning White Paper Stings Minerals Industry with Increased Costs

The QPA, the principal trade association for the sector, has raised serious concerns about the current Planning White Paper on the grounds that it will burden quarry operators with substantially increased costs when making new planning applications or appeals.

The White Paper, released at the end of May, sets out proposals that could see costs for planning applications rise by at least 40% and, in the case of larger sites, by well over 100% if plans to remove the current £50k cap go ahead. It also opens the door for individual mineral planning authorities to levy their own charges rather than basing fees on a national tariff. Even a small variation to an existing permission could cost an operator in excess of £100k according to the White Paper.

Alongside initial application cost hikes, planning appeals could also be subject to unwelcome fees, increasing the cost of securing permissions still further. At a time when replenishment rates on aggregate sites are already running at about half of what is needed to maintain long term supply, these increased costs are counter productive.

A further blow has been dealt by the Chancellor, who has restated his intention to introduce the planning gain supplement (PGS), creating a situation where new sites and extensions suffer potentially massive initial or additional costs. This would have a particularly acute effect in some areas of the country when competing with existing sites that hold longer-term reserves.

Simon van der Byl of QPA said: "Recent reforms have failed to improve the operation of the planning system and this does not create a happy situation for minerals operators. Quarriers are set to suffer from the barrage of new and increasing fees that appear to be arriving from all corners of Government, and this is further compounded by the proposed PGS. With the Minerals Policy Statement underlining the importance of our managed aggregate supply system, it beggars belief that the Government is proposing to make aggregate suppliers' lives even more difficult with these unjustifiably high charges."


ENDS

For more information please contact Tim Parry by tel: 0207 9638000 or e-mail parry@qpa.org, www.qpa.org

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