Mr Michael Jack (Fylde, Conservative)

I was intrigued to read that paragraph 11 of the relevant section of the notes on clauses stated:

``If the electricity generated is for use in producing hydrocarbon oils, other taxable commodities and uranium, then relief can now be claimed on the input fuel.''

Will the Minister who is to reply enlighten the Committee as to what production of uranium is being carried out in Northern Ireland, and why it has been necessary to introduce a relieving measure for the production of this substance? Why has Northern Ireland been marked out for what appears to be special treatment?

Mr Stephen Timms (Financial Secretary, HM Treasury; East Ham, Labour)

The clause makes three changes to the climate change levy provisions. First, gas supplied and consumed in Northern Ireland is exempted from the levy, which was announced in last year's Budget. Secondly, and not just in Northern Ireland, generators and exempt unlicensed electricity suppliers can claim relief on the proportion of their input fuel that they use to generate electricity, which is ultimately for an excluded or exempt use. Thirdly, the exemption for combined heat and power stations is extended to those stations operated by third parties, subject to the status of the station. Those are the three changes being made in the clause, and I am confident that the Committee will welcome them.

Mr Michael Jack (Fylde, Conservative)

That was a delightful reading of the brief, but the Financial Secretary has not answered my question. The explanatory notes state:

``If the electricity generated is for use in producing hydrocarbon oils, other taxable commodities and uranium, then relief can now be claimed on the input fuel.''

I want to know why that interesting group has been singled out? Will the Financial Secretary clarify whether an advantage will be conferred on third party combined heat and power operations in Northern Ireland, in terms of the climate change levy, which is not available to third party combined heat and power generators on the mainland?

Mr Stephen Timms (Financial Secretary, HM Treasury; East Ham, Labour)

The right hon. Gentleman may be suffering under a misapprehension. The second and third changes that I described are not confined in their effect to Northern Ireland. Only the first of the three changes—that gas supplied and consumed in Northern Ireland is exempted from the levy—is confined to Northern Ireland. The other changes apply throughout the United Kingdom.

On exempt unlicensed electricity suppliers, of which the right hon. Gentleman gave examples, unregulated electricity suppliers are taxed on their input fuels rather than on electricity generated. The provisions in last year's Finance Act meant that they could not claim relief on their input fuel for exempt uses of their electricity. The clause corrects that and ensures equal treatment.

Question put and agreed to.

Clause 103 ordered to stand part of the Bill.

Clause 105 ordered to stand part of the Bill.