The call came from QPA chairman David Scott, speaking at the associations annual Scottish Annual Lunch held at the end of last week at Balmoral, Edinburgh. Mr Scott argued that the tax could mean less improvements to hospitals and schools because of added costs to construction.
The aggregates tax was introduced in the recent Finance Bill and will be implemented in 2002. The industry, which bitterly opposed the tax, has conducted a three and a half year campaign against it and is still lobbying Government to drop the legislation or amend it so that it is “more environmentally effective”.
Mr Scott called on Scottish Parliamentarians to fight back at Westminster's imposition of the new tax on aggregates, which will harm Scotland's economy, environment and public spending initiatives. And the key speaker at the event, Fergus Ewing MSP, backed the industry leader's call.
Mr Scott asked the MSPs present at the event to continue to press for measures to offset the aggregates tax's “disproportionately damaging consequences” in Scotland. He said: “Can the Scottish Assembly really sit back and watch its economy being damaged by this Westminster measure, which was surely only introduced so as to show that the previous administration had done something “green”. I think we have every right to ask some searching questions about this nonsensical extra financial burden on the economy and environment of Scotland.
“There is overwhelming evidence to suggest that the aggregates tax is a bad tax; it will have a disproportionate effect in Scotland, and it will damage the Scottish economy to the tune of at least 45million in the first year and more thereafter.
Infrastructure
“There are real implications for Scotland, some of which may not have sunk in yet. The tax will have absolutely no impact on recycling rates; but it will have an impact on publicly funded infrastructure works. And what will that mean? Quite simply, less real improvement to our schools, hospitals, housing, roads, railways, water treatment plants and so on.
“It will bring added costs to the industry and this can only lead to premature quarry closures and some job losses, most probably in rural areas, where they are most valuable.
“And finally, it will surely lead to materials being hauled by road over greater distances, as the relative contribution of transport costs diminishes, compared to the gate price of the raw material. Is this really an environmental improvement?”
Fergus Ewing MSP called for the Scottish Parliament to hold an inquiry into the effects of the tax in Scotland:
“The Northern Ireland Assembly has already held a debate and met with the Chancellor of the Exchequer, Gordon Brown over its concerns about the effects of the tax in Northern Ireland. Surely the Scottish Parliament is not going to neglect to at least hold an inquiry into what impact this mass of additional costs is going to have in Scotland? “
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