New clause 12 - Environmental protection rebates scheme
Finance Bill
6:45 pm
Mr Malcolm Bruce (Gordon, Liberal Democrat)
I accept the Government's undertaking that the aggregates levy will be revenue neutral across the piece, but it will not necessarily be revenue neutral to the businesses that are directly affected. If it were, it would be pointless and would have no effect. Under different circumstances, I might take the matter a little further. However, I wish to put on the record that my hon. Friend the Member for Torridge and West Devon and I remain concerned that the Government are pressing ahead without addressing how we might find a solution to the problem. The Government have been forewarned about casualties—which might still materialise—and anomalies, in which quarries are encouraged to do things that are not environmentally friendly provided that they export their products and in which we actually choose to use import substitutions for things that we can produce domestically, to get around the levy. Such anomalies will emerge.
Generally, environmental taxes have merit. However, the more of them there are and the more complicated they are, the less impact they have and the more distorted the result. I accept that the Financial Secretary has acknowledged that there is a problem and that the Government are prepared to continue examining it. In the spirit of his response and assurances—and in view of the time—I beg to ask leave to withdraw the motion.
Motion and clause, by leave, withdrawn.