New quarry tax could cost jobs

Mark Durkan, Minister of Finance and Personnel, has met with Paul Boateng, Financial Secretary to Treasury, to press for a review of the Government’s decision to introduce a new tax on quarry products.

Speaking after a meeting on Wednesday October 24, Mr Durkan said: "There is wide opposition to the introduction of the aggregates tax in Northern Ireland. While such a tax would raise some £35 million in Northern Ireland for the Treasury, it could jeopardize, at a conservative estimate, some 1,000 jobs here – representing a severe blow to many border towns and our economy.”

The Chancellor announced in his 2000 Budget his intention to introduce an aggregates tax of £1.60 per tonne on virgin aggregate such as sand or stone.

The purpose of the tax is to ensure the negative environmental impacts of quarrying are reflected in the price, encouraging producers to used recycled material.

Mr Durkan continued: “The Executive believes the introduction of the tax in Northern Ireland will not achieve the desired environmental benefits and will result in local quarrying and related industries, the vast majority of which are located within 25 miles of the border, becoming less competitive.

“The tax itself is also unlikely to encourage any significant use of alternative materials as Northern Ireland does not have the same potential sources for recycling, such as disused airfields and major urban regeneration projects, as the rest of the United Kingdom.

"For these reasons we are asking the Treasury not to introduce the tax in Northern Ireland or at the very least to delay it giving the industry time to prepare for the tax and an opportunity to explore other practical and viable approaches that would deliver the desired environmental objectives.”

The Minister described his meeting with Mr Boateng as useful and also revealed that a cross departmental group has been established to examine ways to ensure that Northern Ireland quarries and related industries are becoming more environmentally friendly and producing "green products" in line with their UK counterparts.

(GB)