From April 2002 a 2 levy per tonne will be imposed on new aggregates and some of the levy will go into a Sustainability Fund which will be used in part to promote the use of recycled materials in aggregates. The amount to be spent towards recycled aggregates will be about 15.5 million over two years and the consultation paper sees WRAP as an organisation which could handle the programme.
The Department for Environment, Food and Rural Affairs (DEFRA) says the whole fund will be a public expenditure scheme of 35 million a year for the two years 2002/03 and 2003/04. This amount is guaranteed irrespective of the revenue from the levy, but after this the size of the fund will depend on the impact of the levy. The government has proposed that 6.5 million be allocated in 2002-03 and 9 million in 2003-04 towards minimising the demand for primary aggregates which is thought to mean more aggregates recycling.
The consultation paper suggests six possible options for work that the fund could support, including overcoming market barriers and promoting the increased use of alternative materials as aggregates.
While recyclers are expected to welcome the fund, the aggregates sector remains bitterly opposed. Hazel Parsons, a spokeswoman for the Quarry Products Association, said: “We are opposed to a tax because we don't think that it will encourage recycling, 18-20% of aggregates are already recycled compared to a European average of 7%. We are exceeding government targets and don't see that there is any capacity to expand recycling.”
Ms Parsons added that their principle concern was to get a workable tax and that the 35 million will go into quarrying areas.
The deadline for comments on this consultation is November 27. Responses can be sent to aggregates.consultation@defra.gsi.gov.uk
The consultation paper is available on: DEFRA's website.
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