Schedule 30 - First-year allowances for expenditure on environmentally beneficial plant or machinery
Finance Bill
6:30 pm
Mr Jonathan Djanogly (Huntingdon, Conservative)
Various questions arise following an examination of the schedule. I agree with my hon. Friend the Member for Arundel and South Downs about the lack of definition. I am sure that the Treasury has a good reason, but it seems bizarre that the qualification of expenditure will not apply if the equipment is second-hand. We are discussing environmentally friendly equipment and it is ironic that the green allowance system rejects recycling as a qualification. What is the reasoning behind the system?
Can the Economic Secretary explain the process by which the Treasury would order the certificate of environmental benefit? How would it make a judgment and would that judgment be based on reports? Does it intend to use a panel of experts? Has it already decided which items will comply or will the process be ongoing? That question applies not only to whether the equipment works but to the definition of a friendly environment. Would the allowance apply to building an incinerator from which power could be generated? There are a few questions relating to the subject matter and I shall be interested to hear the Economic Secretary's response.