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[May 2001]
Climate Change Levy - Burden or Benefit?
A recent straw poll of members of the Construction Products Association has shown that the Climate Change Levy will add an extra 7% to the cost of fuel, at a time when companies have already seen a sharp increase in energy costs.
Rita Singh, Policy Development Executive said: "The Association estimates that the total cost of the levy to the construction products industry could be in the region of £80 million per annum. This reflects the financial burden of the Levy even after taking account of the rebate to some sectors of our industry and the reduction in National Insurance contributions, in addition this figure also excludes the significant investment cost faced by firms under the terms of the negotiated agreements. The Association is continuing to press the Government to widen the scope of eligibility for the rebate."
Singh continued: "We believe that reductions in emissions would be better achieved through the proposed emissions trading scheme and by encouraging end-users and clients to utilise more energy-efficient products, through the reduction in VAT on such products."
ENDS
THE CONSTRUCTION PRODUCTS ASSOCIATION:
The Construction Products Association represents over 2000 of the UK’s manufacturers and suppliers of construction products, components and fittings. The Association acts as the voice of the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of £30 billion and accounts for 40% of total construction output.
FOR FURTHER INFORMATION CONTACT: Rita Singh, Policy Development Executive
Construction Products Association
Tel: +44 (0)20 7323 3770
Fax: +44 (0)20 7323 0307
E-mail: rsingh@constprod.org.uk